Migration and Diversity: Human Versus Social Capital

14 Pages Posted: 16 Apr 2013

See all articles by Vlad Manole

Vlad Manole

Rutgers University, Department of Economics

Maurice Schiff

Fellow, Institute for the Study of Labor (IZA)

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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.

Suggested Citation

Manole, Vlad and Schiff, Maurice W., Migration and Diversity: Human Versus Social Capital (May 2013). Review of International Economics, Vol. 21, Issue 2, pp. 281-294, 2013, Available at SSRN: https://ssrn.com/abstract=2251695 or http://dx.doi.org/10.1111/roie.12036

Vlad Manole (Contact Author)

Rutgers University, Department of Economics ( email )

360 Martin Luther King Jr.
Newark, NJ 07102
United States

Maurice W. Schiff

Fellow, Institute for the Study of Labor (IZA) ( email )

Bonn
Germany

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