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Migration and Diversity: Human versus Social Capital
Author(s) -
Manole Vlad,
Schiff Maurice
Publication year - 2013
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12036
Subject(s) - diversity (politics) , economics , welfare , human capital , social capital , capital (architecture) , cultural diversity , general equilibrium theory , similarity (geometry) , microeconomics , physical capital , economic geography , demographic economics , labour economics , neoclassical economics , economic system , sociology , market economy , geography , social science , anthropology , archaeology , artificial intelligence , computer science , image (mathematics)
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.