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This paper estimates differences in human capital as country-of-origin specific labor productivity terms, in firm production functions, making it immune to wage discrimination concerns. After accounting for wage and experience, estimated human capital varies by a factor of around 3 between the 90th and 10th percentile. When I investigate which country-of-origin characteristics correlate most closely with human capital, cultural values are the only robust predictor. This relationship persists among children of migrants. Consistent with a plausible cultural mechanism, individuals whose origin place a high value on autonomy hold a comparative advantage in positions characterized by a low degree of routinization.
That is by Andreas Ek from Lund University, recently accepted to the Journal of Political Economy. I do not currently see ungated versions of the paper.
The post Cultural values and productivity (rooftops) appeared first on Marginal REVOLUTION.
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