Job Protection: The Macho Hypothesis

Yann Algan · Pierre Cahuc

96 citations0/0 files storedOxford Review of Economic Policy

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Culture, Economy, and Development Studies Employment, Labor, and Gender Studies Gender, Labor, and Family Dynamics

Abstract

This paper shows that the stringency of employment protection in Mediterranean countries can be partly explained by cultural values embedded in religion. Both the security provided by this legislation and its redistributive effects in favour of the male breadwinner insiders fit into the framework of Mediterranean religions. First, international individual surveys allow us to document that Catholics and Muslims are more likely to agree with traditional gender division of work than Protestants and the non-religious. Second, we develop a political economy model predicting that employment protection should be more stringent in countries where there is a larger share of insiders supportive of traditional family values. We then show that this prediction is supported by empirical evidence on OECD countries over the period 1970–99.

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References

1990The three worlds of welfare capitalism 2005The Protestant Ethic and the Spirit of Capitalism 1999Social Foundations of Postindustrial Economies 2001International data on educational attainment: updates and implications 1991The Three Worlds of Welfare Capitalism.1999Labor Supply: A Review of Alternative Approaches 2000The Role of Shocks and Institutions in the Rise of European Unemployment: the Aggregate Evidence 2003People's opium? Religion and economic attitudes

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