This paper explores the idea of the labour market as a social institution by examining the relationship between culture and labour market behaviour. The term culture, taken in its wide ethnographic sense, 'is that complex whole which includes knowledge, belief, art, morals, law, custom and any other capabilities acquired by man as a member of society' (Taylor [1871], 1958, p.1). An attempt is made in this paper to clarify, from an economic perpective, the various aspects of culture; to identify in general terms the nature of the relationships between culture and economic behaviour; and to outline the implications of these relationships for some labour market issues. It is hoped that this description will provide a logical framework within which further studies of cultural effects can proceed.
