Civic Virtue and Labor Market Institutions - Archive ouverte HAL Access content directly
Journal Articles American Economic Journal: Macroeconomics Year : 2009

Civic Virtue and Labor Market Institutions


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.
Fichier principal
Vignette du fichier
mac.1.1.111.pdf (562.55 Ko) Télécharger le fichier
Origin : Publisher files allowed on an open archive

Dates and versions

hal-03384694 , version 1 (19-10-2021)



Yann Algan, Pierre Cahuc. Civic Virtue and Labor Market Institutions. American Economic Journal: Macroeconomics, 2009, 1 (1), pp.111 - 145. ⟨10.1257/mac.1.1.111⟩. ⟨hal-03384694⟩
59 View
81 Download



Gmail Facebook Twitter LinkedIn More