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Altruism to Strangers for our Own Sake: Domestic Effects from Immigration

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  • Annie Tubadji

    (Institut f�r Arbeidsmarkt- und Berufsforschung (IAB), and University of Regensburg)

  • Peter Nijkamp

    (VU University Amsterdam)

Abstract

This paper seeks to identify relationships between human capital and cultural capital, in the context of local labour market productivity. The key constituents of human capital, identified in the literature, are jointly examined in a close-to-reality-model. The main advantage of our model of productivity is that, in addition to accounting for the filigree composition of human capital, it also takes into consideration the cultural capital present in a locality. In this manner, we are able to examine the interaction between the quality of the incoming human capital and the cultural encounter context (generating the cultural "milieu" effect) of the modern diverse city. To this end, we operationalize one model with data on the 'melting pot' of EU15, at NUTS2 level. The sources of our data are the Eurostat Regional Database and the World Value Survey, which have served to construct both a cross-section for the year 2001. These datasets allows us: (1) to exa mine the different groups of migrating and local human capital, their interaction and joint impact on local productivity, and (2) to cross-check for the causality direction behind our model. Our findings suggest that benefits from immigrants differ, not only due to their human capital, but also due to their culturally biased different bargaining power on the labour market.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-079/3.

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Date of creation: 27 Jul 2012
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Handle: RePEc:dgr:uvatin:20120079

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Web page: http://www.tinbergen.nl

Related research

Keywords: human capital; cultural capital; diversity; productivity; growth; Weber;

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References

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  1. Richard Florida & Charlotta Mellander, 2010. "There goes the metro: how and why bohemians, artists and gays affect regional housing values," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 10(2), pages 167-188, March.
  2. Brian M. Lucey, QiYu Zhang* School of Business, Trinity College Dublin, Ireland, 2009. "Does cultural distance matter in international stock market comovement? Evidence from emerging economies around the world," The Institute for International Integration Studies Discussion Paper Series, IIIS iiisdp304, IIIS.
  3. Möller, Joachim & Tubadji, Annie, 2009. "The Creative Class, Bohemians and Local Labor Market Performance: A Micro-data Panel Study for Germany 1975-2004," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 08-135, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Gianmarco I.P. Ottaviano & Giovanni Prarolo, 2009. "Cultural Identity and Knowledge Creation in Cosmopolitan Cities," Working Papers, Fondazione Eni Enrico Mattei 2009.72, Fondazione Eni Enrico Mattei.
  5. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2011. "Immigration And Innovation In European Regions," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011008, Norface Research Programme on Migration, Department of Economics, University College London.
  6. Autor, David & Dorn, David, 2009. "Inequality and Specialization: The Growth of Low-Skill Service Jobs in the United States," IZA Discussion Papers 4290, Institute for the Study of Labor (IZA).
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Cited by:
  1. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2014. "Cultural Diversity and Cultural Distance as Choice Determinants of Migration Destination," Tinbergen Institute Discussion Papers, Tinbergen Institute 14-066/VIII, Tinbergen Institute.

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