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Does Culture Affect Unemployment Duration?
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IZA Seminar |
Place: Schaumburg-Lippe-Str. 9, 53113 Bonn |
Date: 18.03.2008, 12:15 - 13:30 |
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Abstract: |
This paper studies the effect of culturally shaped
preferences for leisure (PL) and implementation of active labor market
policies (ALMP) on the duration of unemployment. Identifying this
effect is difficult due to omitted variables and reverse causality. We
propose to use a sharp change in language to instrument for culture.
We find that moving from German speaking regions in Switzerland to
Latin speaking regions of Switzerland dramatically changes PL and
ALMP. Moreover, crossing the language border also dramatically changes
unemployment duration. This evidence is consistent with strong effects
of culture on unemployment duration. |
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For more information, please contact seminar@iza.org
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