1177-Public Policy. Alessandra Casarico

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1 1177-Public Policy Alessandra Casarico

2 Women, work and culture Until recently, modern economics has ignored the role of culture in explaining economic phenomena. Traditional strategy: Explain variation in economic outcomes with differences in policy, institutions, and technology. The distribution of agents preferences/beliefs taken as given and invariant to the environment.

3 A working definition of culture Guiso, Sapienza and Zingales (2006) Those customary beliefs and values that ethnic, religious, and social groups transmit fairly unchanged from generation to generation. Fernandez (2007) Differences in culture are systematic variations in beliefs and preferences across time, space or social groups.

4 Culture and economic outcomes Do we believe that culture matters to economic outcomes? Do differences in culture play a quantitatively important role in explaining economic outcomes?

5 Culture and economic outcomes Women s/men s Roles: Female LFP; occupational choice; fertility; household division of labour.

6 Evolution of female participation (from Fernandez 2007)

7 Determinants of the female labour force participation Rise in the service sector Technological change Housework Contraception Evolution in the cultural beliefs about the appropriate role of women in society

8 Fernández, Fogli, Olivetti (2004) Controlling for socio-economic indicators, they show that (white) men whose mothers worked while they were growing up tend to be married to women who also work. Large quantitative effect: a mother who works increases the probability that man s wife works from 39% to 71%. Preference transmission: Men brought up by working mother either prefer women who work or are preferred by women who want to work.

9 Evolution of culture

10 Gender culture and female employment occupazione_femminile Valle d'aosta Basilicata Sardegna Calabria Trentino Alto Adige Emilia Romagna Lombardia Marche Veneto Piemonte Toscana Friuli Venezia Giulia Umbria Abruzzo Sicilia Lazio Puglia Campania Liguria Molise essere_casalinga occupazione_femminile Calabria Basilicata Veneto Marche Umbria Campania Puglia Liguria Lazio Sicilia Piemonte Toscana Abruzzo Valle d'aosta Lombardia Emilia Romagna Friuli Venezia Giulia Sardegna bambini_soffrono Molise Trentino Alto Adige occupazione_femminile Valle d'aosta Molise Trentino Alto Adige Emilia Rom agna Lomb ardia Marche Ven eto Piemonte Friuli Ven Toscana ezia Giulia Umbria Liguria Lazio Abruzzo Basilicata Sardegna Puglia Campania Calabria Sicilia diritto_allavoro

11 Culture and economic outcomes Main challenge is to separate culture from institutions (e.g., legal framework) and traditional economic variables (e.g., prices and income). Recent empirical evidence on significance of Culture: Survey Evidence on Attitudes Case Studies Epidemiological Approach

12 The Epidemiological Approach Are cross-country differences driven by genetic or environmental (including culture) factors? Compare a health outcome (e.g. heart disease) for immigrants with that for natives Is there convergence in health outcomes? If convergence environment If convergence not observed, one cannot automatically conclude genetics.

13 The Epidemiological Approach in Economics Are cross-country differences in an economic outcome (e.g. female labour force participation) driven by economic/institutional factors or does culture play a quantitatively important role? Problem The behavior of immigrants differentially affected by shocks (language, employment, etc.). Assimilation and Selection

14 Fernandez and Fogli (2006): past values of female LFP in the women s country of ancestry as a cultural proxy. Women who are in 1970 Female LFP in the country of ancestry in 1950 Explanatory power for the market labour supply in US in 1970 Fernandez (2007): future values of LFP in the women s country of ancestry as a cultural proxy Women who are in Female LFP in the country of ancestry in 1950

15 Fernandez (2007)

16

17 Attitudes in 1990 Use attitudes directly as a measure of culture Problem: reverse causality IV Attitudes of individuals from a different time and place Use attitudes towards women work in the country of ancestry WVS

18 WVS data

19 Derive the country marginal effects for the two statements and use them as a cultural proxy Housework and Job are significant and of the expected value in the regressions on hours worked

20

21

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