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Local Social Capital and Geographical Mobility: A Theory

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  • David, Quentin

    ()
    (ECARES, Free University of Brussels)

  • Janiak, Alexandre

    ()
    (University of Chile)

  • Wasmer, Etienne

    ()
    (Sciences Po, Paris)

Abstract

In this paper, we attempt to understand the determinants of mobility by introducing the concept of local social capital. Investing in local ties is rational when workers anticipate that they will not move to another region. Reciprocally, once local social capital is accumulated, incentives to move are reduced. Our model illustrates several types of complementarity leading to multiple equilibria (a world of local social capital and low mobility vs. a world of low social capital and high propensity to move). It also shows that local social capital is systematically negative for mobility, and can be negative for employment, but some other types of social capital can actually raise employment.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3668.

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Length: 40 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3668

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Keywords: geographical mobility; European unemployment; social capital;

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References

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Citations

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Cited by:
  1. Alexandre Janiak & Quentin David & Etienne Wasmer, 2008. "Local Social Capital and Geographical Mobility: Some Empirics and a Conjecture on the Nature of European Unemployment," Sciences Po publications 3669, Sciences Po.
  2. Viviana Fernández & Brian M. Lucey, 2008. "Emerging Markets Variance Shocks: Local or International in Origin?," Documentos de Trabajo, Centro de Economía Aplicada, Universidad de Chile 251, Centro de Economía Aplicada, Universidad de Chile.
  3. Quentin Max David & Alexandre Janiak & Etienne Wasmer, 2012. "Local social capital and geographical mobility," ULB Institutional Repository 2013/133081, ULB -- Universite Libre de Bruxelles.
  4. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 10(2), pages 417-450, 04.
  5. Janiak, Alexandre, 2008. "Welfare in Models of Trade with Heterogeneous Firms," IZA Discussion Papers 3803, Institute for the Study of Labor (IZA).

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