Social Culture and Economic Performance
- (pp. 924-937)
AbstractThe 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.
Citation2001. "Social Culture and Economic Performance." American Economic Review, 91(4): 924-937. DOI: 10.1257/aer.91.4.924
- Z13 Economic Sociology; Economic Anthropology
- J31 Wage Level and Structure; Wage Differentials
- O33 Technological Change: Choices and Consequences; Diffusion Processes