Occupational Choice and the Spirit of Capitalism

Matthias Doepke () and Fabrizio Zilibotti ()

No 12917, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The British Industrial Revolution triggered a reversal in the social order of society whereby the landed elite was replaced by industrial capitalists rising from the middle classes as the economically dominant group. Many observers have linked this transformation to the contrast in values between a hard-working and frugal middle class and an upper class imbued with disdain for work. We propose an economic theory of preference formation where both the divergence of attitudes across social classes and the ensuing reversal of economic fortunes are equilibrium outcomes. In our theory, parents shape their children's preferences in response to economic incentives. This results in the stratification of society along occupational lines. Middle-class families in occupations that require effort, skill, and experience develop patience and work ethics, whereas upper-class families relying on rental income cultivate a refined taste for leisure. These class-specific attitudes, which are rooted in the nature of pre-industrial professions, become key determinants of success once industrialization transforms the economic landscape.

JEL-codes: J24 N2 N3 O11 O15 O40 (search for similar items in EconPapers)
Date: 2007-02
Note: EFG DAE
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w12917.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Occupational Choice and the Spirit of Capitalism (2007)
Working Paper: Occupational Choice and the Spirit of Capitalism
Working Paper: Occupational Choice and the Spirit of Capitalism (2007)
Working Paper: Occupational choice and the spirit of capitalism (2007)
Working Paper: Occupational Choice and the Spirit of Capitalism (2007)
Journal Article: Occupational Choice and the Spirit of Capitalism (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:12917

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w12917
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().