We study how the city system is affected by the possibility for the members of the same cultural diaspora to interact across different cities. In so doing, we propose a simple two- city model with two mobile cultural groups. A localized externality fosters the productivity of individuals when groups interact in a city. At the same time, such interaction dilutes cultural identities and reduces the consumption of culture-specific goods and services. We show that the two groups segregate in different cities when diaspora members find it hard to communicate at distance whereas they integrate in multicultural cities when communication is easy. The model generates situations in which segregation is an equilibrium but is Pareto dominated by integration.
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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number
2009.72.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2005.
"Cities and cultures,"
Journal of Urban Economics,
Elsevier, vol. 58(2), pages 304-337, September.
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Other versions:
Ottaviano, Gianmarco Ireo Paolo & Peri, Giovanni, 2004.
"Cities and Cultures,"
CEPR Discussion Papers
4438, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Gianmarco I.P. Ottaviano & Giovanni Peri, 2004.
"Cities and Cultures,"
Working Papers
2004.92, Fondazione Eni Enrico Mattei.
[Downloadable!]