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Migrants, Ethnicity and Strategic Assimilation

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  • Gil S. Epstein

    ()
    (Bar-Ilan University)

  • Ira N Gang

    ()
    (Rutgers University)

Abstract

Ethnic networks are a way of overcoming informal barriers to trade such as information costs, risk, and uncertainty by building trust and by substituting for the difficulty of enforcing contracts internationally. We study networks which emerge from the interaction (i) between migrants and natives in the host country and (ii) between migrants and natives in their home country. The degree of assimilation and the strength of the networks do not “just happen”, but are the outcomes of strategic choices of subsets of the migrant population.

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Bibliographic Info

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200630.

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Length: 20 pages
Date of creation: 01 Dec 2006
Date of revision:
Handle: RePEc:rut:rutres:200630

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Keywords: Assimilation; migration; ethnic networks; contracts;

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References

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  1. Kahanec, M., 2004. "Social Interaction and the Minority-Majority Earnings Inequality: Why Being a Minority Hurts but being a big Minority Hurts More," Discussion Paper 2004-41, Tilburg University, Center for Economic Research.
  2. Ira N. Gang & Klaus F. Zimmermann, 1999. "Is Child Like Parent? Educational Attainment and Ethnic Origin," Departmental Working Papers 199614, Rutgers University, Department of Economics.
  3. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S95-S126, December.
  4. Epstein, Gil S., 2000. "Labor Market Interactions Between Legal and Illegal Immigrants," IZA Discussion Papers 204, Institute for the Study of Labor (IZA).
  5. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  6. Hillel Rapoport & Avi Weiss, 2001. "The Optimal Size for a Minority," Working Papers 2001-01, Department of Economics, Bar-Ilan University.
  7. Epstein, Gil S. & Gang, Ira N., 2004. "Ethnic Networks and International Trade," IZA Discussion Papers 1232, Institute for the Study of Labor (IZA).
  8. Lindbeck, Assar & Snower, Dennis J, 1988. "Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach," American Economic Review, American Economic Association, vol. 78(1), pages 167-88, March.
  9. Gradstein, Mark & Justman, Moshe, 2005. "The melting pot and school choice," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 871-896, June.
  10. Gil Epstein & Shmuel Nitzan, 2006. "Reduced prizes and increased effort in contests," Social Choice and Welfare, Springer, vol. 26(3), pages 447-453, June.
  11. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1177-1203, December.
  12. Gradstein, Mark & Schiff, Maurice, 2004. "The Political Economy of Social Exclusion with Implications for Immigration Policy," IZA Discussion Papers 1087, Institute for the Study of Labor (IZA).
  13. Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, vol. 7(2), pages 157-75.
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