?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Can+policy+interact+with+culture%3F+minimum+wage+and+the+quality+of+labor+relations&rft.creator=Aghion%2C+P.&rft.creator=Algun%2C+Y.&rft.creator=Cahuc%2C+P.&rft.description=Can+public+policy+interfere+with+culture%2C+such+as+beliefs+and+norms+of+cooperation%3F+We+investigate+this+question+by+evaluating+the+interactions+between+the+State+and+the+Civil+Society%2C+focusing+on+the+labor+market.+International+data+shows+a+negative+correlation+between+union+density+and+the+quality+of+labor+relations+on+one+hand%2C+and+state+regulation+of+the+minimum+wage+on+the+other+hand.+To+explain+this+relation%2C+we+develop+a+model+of+learning+of+the+quality+of+labor+relations.+State+regulation+crowds+out+the+possibility+for+workers+to+experiment+negotiation+and+learn+about+the+true+cooperative+nature+of+participants+in+the+labor+market.+This+crowding+out+effect+can+give+rise+to+multiple+equilibria%3A+a+%22good%22+equilibrium+characterized+by+strong+beliefs+in+cooperation%2C+leading+to+high+union+density+and+low+state+regulation%3B+and+a+%22bad%22+equilibrium%2C+characterized+by+distrustful+labor+relations%2C+low+union+density+and+strong+state+regulation+of+the+minimum+wage.+We+then+use+surveys+on+social+attitudes+and+unionization+behavior+to+document+the+relation+between+minimum+wage+legislation+and+the+beliefs+about+the+scope+of+cooperation+in+the+labor+market.&rft.publisher=National+Bureau+of+Economic+Research&rft.date=2008-09&rft.type=Working+%2F+discussion+paper&rft.language=eng&rft.source=++++(NBER+Working+Papers++14327).+National+Bureau+of+Economic+Research%3A+Cambridge%2C+US.+(2008)+++++&rft.format=application%2Fpdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F17764%2F1%2F17764.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F17764%2F&rft.rights=open