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Obedience in the Labor Market and Social Mobility: A Socio-Economic Approach
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Obedience in the Labor Market and Social Mobility: A Socio-Economic Approach

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  • Daron Acemoglu

Abstract

This paper presents an analysis of what types of values, especially in regards to obedience vs. independence, families impart to their children and how these values interact with social mobility. In the model, obedience is a useful characteristic for employers, especially when wages are low, because independent workers require more incentives (when wages are high, these incentives are automatic). Hence, in low-wage environments, low-income families will impart values of obedience to their children to prevent disadvantaging them in the labor market. To the extent that independence is useful for entrepreneurial activities, this then depresses their social mobility. High-income and privileged parents, on the other hand, always impart values of independence, since they expect that their children can enter into higher-income entrepreneurial (or managerial) activities thanks to their family resources and privileges. I also discuss how political activity can be hampered when labor market incentives encourage greater obedience and how this can generate multiple steady states with different patterns of social hierarchy and mobility.

Suggested Citation

  • Daron Acemoglu, 2021. "Obedience in the Labor Market and Social Mobility: A Socio-Economic Approach," NBER Working Papers 29125, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29125
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    More about this item

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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