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Should I Stay or Should I Go? Regional Mobility and Social Capital

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  • Michael Bräuninger
  • Andreia Tolciu

Abstract

This paper explores the effect of social capital on mobility, and the role of mobility in the decision to invest in social capital. At the end of a period, in which individuals work and invest in regionally immobile social capital, there may be an income shock. Given a negative shock, individuals have to decide whether to move so they can maintain their income but lose social capital, or to stay in the region, accepting the income loss but retaining their social capital. As a result, the effects of labour market shocks on mobility patterns depend on social environments.

Suggested Citation

  • Michael Bräuninger & Andreia Tolciu, 2011. "Should I Stay or Should I Go? Regional Mobility and Social Capital," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(3), pages 434-444, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201109)167:3_434:sisosi_2.0.tx_2-e
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    References listed on IDEAS

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    1. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: A Theory," IZA Discussion Papers 3668, Institute of Labor Economics (IZA).
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    4. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
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    Cited by:

    1. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "The return to labor market mobility: An evaluation of relocation assistance for the unemployed," Journal of Public Economics, Elsevier, vol. 148(C), pages 136-151.
    2. Rostislav Staněk & Ondřej Krčál & Štěpán Mikula, 2021. "Social Capital and Mobility: An Experimental Study," MUNI ECON Working Papers 2021-12, Masaryk University, revised Feb 2023.
    3. Guzi, Martin & Huber, Peter & Mikula, Štěpán, 2021. "The long-term impact of the resettlement of the Sudetenland on residential migration," Journal of Urban Economics, Elsevier, vol. 126(C).

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    More about this item

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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