Social Culture and Economic Performance
Fang, Hanming. 2001. "Social Culture and Economic Performance."
American Economic Review,
The connection between obtaining higher paying jobs and undertaking some seemingly irrelevant activity is interpreted as "social culture." In the context of a society trying to adopt a new technology, I show that by allowing the firms to give preferential treatment to workers based on some "cultural activity," the society can partially overcome an informational free-riding problem. Therefore, social culture may affect the economic performance by altering the effective production technology of the economy.
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Fang, Hanming (Yale U)
Z13: Economic Sociology; Economic Anthropology
J31: Wage Level and Structure; Wage Differentials
O33: Technological Change: Choices and Consequences; Diffusion Processes