Civic Virtue and Labor Market Institutions
Yann Algan and
Pierre Cahuc
Post-Print from HAL
Abstract:
We argue civic virtue plays a key role in explaining the design of public insurance against unemployment risks by solving moral hazard issues which hinder the efficiency of unemployment insurance. We show, in a simple model, that economies with stronger civic virtues are more prone to provide insurance through unemployment benefits rather than through job protection. We provide cross-country empirical evidence of a strong correlation between civic attitudes and the design of unemployment benefits and employment protection in OECD countries over the period 1980 to 2003. We then use an epidemiological approach to estimate the existence of a potential causal relationship from inherited civic virtue to labor market insurance institutions.
Date: 2009
Note: View the original document on HAL open archive server: https://hal.science/hal-03384694
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (150)
Published in American Economic Journal: Macroeconomics, 2009, 1 (1), pp.111 - 145. ⟨10.1257/mac.1.1.111⟩
Downloads: (external link)
https://hal.science/hal-03384694/document (application/pdf)
Related works:
Journal Article: Civic Virtue and Labor Market Institutions (2009) 
Working Paper: Civic Virtue and Labor Markets Institutions (2009)
Working Paper: Civic Vitue and Labor Market Institutions (2009)
Working Paper: Civic Vitue and Labor Market Institutions (2009)
Working Paper: Civic Virtue and Labor Market Institutions (2009) 
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: https://EconPapers.repec.org/RePEc:hal:journl:hal-03384694
DOI: 10.1257/mac.1.1.111
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().