Migration and Diversity: Human Versus Social Capital
14 Pages Posted: 16 Apr 2013
There are 2 versions of this paper
Migration and Diversity: Human Versus Social Capital
Date Written: May 2013
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.
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