Abstract
This paper examines the welfare implications associated with different degrees of diversity or similarity between migrants and natives under both migration and trade. We argue that the formation and use of social capital depend on culture. We use a general equilibrium model of migration, human capital, and social capital and find that there are three equilibrium solutions. Welfare under any of the equilibrium solutions rises with the diversity in human capital and decreases with the diversity in social capital between migrants and natives.
Original language | English (US) |
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Pages (from-to) | 281-294 |
Number of pages | 14 |
Journal | Review of International Economics |
Volume | 21 |
Issue number | 2 |
DOIs | |
State | Published - May 2013 |
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Development