IDEAS home Printed from https://ideas.repec.org/h/eme/fegzzz/s1574-8715(2010)0000008020.html
   My bibliography  Save this book chapter

Chapter 14 Assimilating Under Credit Constraints: Public Support for Private Efforts

In: Migration and Culture

Author

Listed:
  • Sajal Lahiri

Abstract

We examine the effect of borrowing constraint facing new immigrants on the process of their assimilation in the new society. We shall do so in a two-period model. In period 1, immigrants invest, with some costs to them, in trying to assimilate. The probability of success in this endeavor depends on the amount invested and also on the level of the provision of a “public” good paid for by lump-sum taxation of “natives”. Those who succeed enjoy a higher level of productivity and therefore wages in period 2. The level of investment is endogenously determined. Assimilation also affects remittances by immigrants. Given this framework, we examine the effect of public support on the degree of assimilation and income repatriation. We do so under two scenarios regarding the credit market facing new immigrants. In the first, they can borrow as much as they want in period 1 at an exogenously given interest rate. In the second scenarios, there is a binding borrowing constraint. We compare the equilibrium under the two scenarios.

Suggested Citation

  • Sajal Lahiri, 2010. "Chapter 14 Assimilating Under Credit Constraints: Public Support for Private Efforts," Frontiers of Economics and Globalization, in: Migration and Culture, pages 341-356, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(2010)0000008020
    DOI: 10.1108/S1574-8715(2010)0000008020
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1574-8715(2010)0000008020/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1574-8715(2010)0000008020/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1108/S1574-8715(2010)0000008020
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1574-8715(2010)0000008020/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/S1574-8715(2010)0000008020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:fegzzz:s1574-8715(2010)0000008020. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.