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Network Formations among Immigrants and Natives

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Author Info
Epstein, Gil S. () (Bar-Ilan University)
Heizler (Cohen), Odelia () (Hebrew University, Jerusalem)

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Abstract

In this paper we examine possible network formations among immigrants and natives with endogenous investment. We consider a model of a network formation where the initiator of the link bears its cost while both agents benefit from it. We present the model by considering possible interactions between immigrants and the new society in the host country: assimilation, separation, integration and marginalization. The paper highlights different aspects of immigrants’ behavior and their interaction with the members of the host country (society) and their source country (society). We found that when the stock of the immigrants in the host country increases, the immigrants' investment in the middlemen increases and the natives may bear the cost of link formation with the middlemen.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4234.

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Date of creation: Jun 2009
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Handle: RePEc:iza:izadps:dp4234

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Related research
Keywords: assimilation and separation; social networks; network formations;

Find related papers by JEL classification:
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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This page was last updated on 2009-11-23.

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