The connection between obtaining higher paying jobs and undertaking some se
emingly irrelevant activity is interpreted as "social culture. " In the con
text of a society trying to adopt a new technology, I show that by allowing
the firms to give preferential treatment to workers based on some "cultura
l activity, " the society can partially, overcome an informational free-rid
ing problenz. Therefore, social culture may affect the economic performance
by altering the effective production technology of the economy.