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dc.contributor.authorAghion, Philippeen
dc.contributor.authorAlgan, Yannen
dc.contributor.authorCahuc, Pierreen
dc.date.accessioned2008-09-26-
dc.date.accessioned2010-07-07T11:31:19Z-
dc.date.available2010-07-07T11:31:19Z-
dc.date.issued2008-
dc.identifier.piurn:nbn:de:101:1-2008092948en
dc.identifier.urihttp://hdl.handle.net/10419/34992-
dc.description.abstractCan public policy interfere with culture, such as beliefs and norms of cooperation? We investigate his question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on one hand, and state regulation of the minimum wage on the other hand. To explain this relation, we develop a model of learning of the quality of labor relations. State regulation crowds out the possibility for workers to experiment negotiation and learn about the true cooperative nature of participants in the labor market. This crowding out effect can give rise to multiple equilibria: a good equilibrium characterized by strong beliefs in cooperation, leading to high union density and low state regulation; and a bad equilibrium, characterized by distrustful labor relations, low union density and strong state regulation of the minimum wage. We then use surveys on social attitudes and unionization behavior to document the relation between minimum wage legislation and the beliefs about the scope of cooperation in the labor market.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x3680en
dc.subject.jelJ30en
dc.subject.ddc330en
dc.subject.keywordSocial capitalen
dc.subject.keywordquality of labor relationsen
dc.subject.keywordtrade unionsen
dc.subject.keywordminimum wageen
dc.subject.stwArbeitsmarktpolitiken
dc.subject.stwMindestlohnen
dc.subject.stwArbeitsbeziehungenen
dc.subject.stwGewerkschaftsbewegungen
dc.subject.stwKooperationen
dc.subject.stwSoziale Werteen
dc.subject.stwOECD-Staatenen
dc.titleCan policy interact with culture? Minimum wage and the quality of labor relations-
dc.type|aWorking Paperen
dc.identifier.ppn578593076en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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