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| Alesina, Alberto; Algan, Yann; Cahuc, Pierre; Giuliano, Paola. |
| Flexible labor markets requires geographically mobile workers to be efficient. Otherwise, firms can take advantage of the immobility of workers and extract monopsony rents. In cultures with strong family ties, moving away from home is costly. Thus, individuals with strong family ties rationally choose regulated labor markets to avoid moving and limiting the monopsony power of firms, even though regulation generates lower employment and income. Empirically, we do find that individuals who inherit stronger family ties are less mobile, have lower wages, are less often employed and support more stringent labor market regulations. There are also positive cross-country correlations between the strength of family ties and labor market rigidities. Finally, we find... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Family Values; Regulation of Labor; Labor Markets; Labor and Human Capital; J; J2; J4. |
| Ano: 2010 |
URL: http://purl.umn.edu/90908 |
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