Sunday, July 2, 2023

Consistent with a plausible cultural mechanism, individuals whose origin place a high value on autonomy hold a comparative advantage in positions characterized by a low degree of routinization; this persists among immigrants' children

Cultural Values and Productivity. Andreas Ek. Journal of Political Economy, Jun 2023. https://doi.org/10.1086/726239

Abstract: This paper estimates differences in human capital as country-of-origin specific labor productivity terms, in firm production functions, making it immune to wage discrimination concerns.  After accounting for wage and experience, estimated human capital varies by a factor of around 3 between the 90th and 10th percentile.  When I investigate which country-of-origin characteristics correlate most closely with human capital, cultural values are the only robust predictor.  This relationship persists among children of migrants.  Consistent with a plausible cultural mechanism, individuals whose origin place a high value on autonomy hold a comparative advantage in positions characterized by a low degree of routinization.


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