NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Occupational Choice and the Spirit of Capitalism

Matthias Doepke, Fabrizio Zilibotti

NBER Working Paper No. 12917
Issued in February 2007
NBER Program(s):   EFG   DAE

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.

download in pdf format
   (378 K)

email paper

This paper is available as PDF (378 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w12917

Published: Matthias Doepke & Fabrizio Zilibotti, 2008. "Occupational Choice and the Spirit of Capitalism," The Quarterly Journal of Economics, MIT Press, vol. 123(2), pages 747-793, 05. citation courtesy of

Users who downloaded this paper also downloaded these:
Eeckhout and Jovanovic w13686 Occupational Choice and Development
Barro and McCleary w9682 Religion and Economic Growth
Manova and Zhang w15342 Export Prices Across Firms and Destinations
Acharya A Transparency Standard for Derivatives
Acemoglu, Aghion, LeLarge, Van Reenen, and Zilibotti w12206 Technology, Information and the Decentralization of the Firm
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us