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Attempting to define the meaning of culture and the nature of its possible consequences on economic processes and outcomes, this book examines alternative theoretical and empirical approaches to the economic analysis of cultural effects in the labour market. Using extensive new data from 14 countries, this book presents tangible evidence of substantial cross-cultural differences in beliefs about wage inequality. Looking in detail at the meaning and importance of social norms, shared beliefs and attitudes throughout the world, this book also examines recent trends in wage disparity around the globe and relates these to changing beliefs about the legitimacy of inequality. The results reveal that cultural norms relating to wage disparity actually alter with the experience of high levels of inequality. Significantly, the analysis also indicates that cultural norms have the potential to modify certain economic outcomes such as the wage structure and level of unemployment.