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Local Social Capital and Geographical Mobility: A Theory

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  • Alexandre Janiak

    (Departamento de Ingenieria Industrial (DII))

  • Quentin David

    (Département de Droit de l'UL)

  • Etienne Wasmer

    (Département d'économie)

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 Sciences Po in its series Sciences Po publications with number 3668.

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Date of creation: Aug 2008
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Handle: RePEc:spo:wpmain:info:hdl:2441/10055

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Keywords: European unemployment; geographical mobility; social capital;

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References

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Citations

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Cited by:
  1. Quentin David & Alexandre Janiak & Etienne Wasmer, 2009. "Local social capital and geographical mobility," CREA Discussion Paper Series 09-11, Center for Research in Economic Analysis, University of Luxembourg.
  2. Alexandre Janiak, 2008. "Welfare in models of trade with heterogeneous firms," Documentos de Trabajo 253, Centro de Economía Aplicada, Universidad de Chile.
  3. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2008. "Local Social Capital and Geographical Mobility: Some Empirics and a Conjecture on the Nature of European Unemployment," IZA Discussion Papers 3669, Institute for the Study of Labor (IZA).
  4. Stephen Machin & Panu Pelkonen & Kjell Salvanes, 2008. "Education and Mobility," CEE Discussion Papers 0100, Centre for the Economics of Education, LSE.
  5. Viviana Fernández & Brian M. Lucey, 2008. "Emerging Markets Variance Shocks: Local or International in Origin?," Documentos de Trabajo 251, Centro de Economía Aplicada, Universidad de Chile.

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