The Economics of Culture

People from cultures that emphasize productive habits tend to advance. The reverse is also true

By Roland Fryer. He is a Harvard economics professor. Excerpts:

[Economist Thomas] "Sowell has argued that both human capital and culture drive mobility—more so, in his view, than discrimination or external barriers. Groups that develop productivity-enhancing traits such as skills, an orientation toward education and work, and thriftiness tend to advance."

"culture and economics are woven tightly together."

"Economists define it [culture] as the bundle of beliefs and values that ethnic, religious and social groups pass down from generation to generation."

"Culture operates like capital, potentially influencing the productivity and progress of groups."

"Cultural differences across racial and ethnic groups are unmistakable."

"A 2017 USA Today analysis found that the top show for white audiences, “NCIS,” didn’t even make the top five for black, Hispanic or Asian viewers. Meanwhile, the most-watched show among African-Americans, “Empire,” ranked in fifth place for Hispanics and didn’t make the top five for whites."

"Mr. Sowell argued in his 1994 book “Race and Culture: A World View,” culture can sometimes discourage behaviors that lead to progress—devaluing education, stigmatizing work or glorifying reckless behavior. That idea echoes the long-debated “culture of poverty” theory, which holds that poverty can perpetuate itself through self-defeating norms and expectations."

"In the 1960s, naming differences between black and white parents were modest. Even in segregated neighborhoods, black families chose names similar to those of whites. But in the early 1970s, a profound shift swept through black America, especially in racially isolated areas. In the 1960s, the median black girl living in a segregated black neighborhood received a name that was only twice as common among black girls as among white girls. In the 1970s, that number rose to 20 times. A quarter of black families, mostly those in integrated neighborhoods, moved in the opposite direction, choosing names more similar to whites’ names."

"We found no compelling evidence that having a distinctively black name harmed a child’s prospects once background factors were taken into account."

"culture . . . shapes the formation of human capital—the skills, aspirations and habits that drive success. Mr. Sowell emphasized this repeatedly: The same innate ability can produce different outcomes depending on the norms that surround it."

[In] "a 2015 study by Leonardo Bursztyn and Robert Jensen . . . they offered free SAT-prep courses. On some sign-up forms, they promised to keep students’ decisions completely private; on others, they said the rest of the class would know who signed up. In non-honors classes, students were 11 percentage points less likely to sign up for SAT prep if their classmates would know. For students taking both honors and non-honors courses, their reaction depended on which set of peers would find out; visibility increased sign-ups in honors classes but decreased it in other classes."

"The experiment revealed a “social tax” on learning: Culture didn’t change the real payoff to education, but it changed students’ willingness to claim it."

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