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Local Social Capital and Geographical Mobility: A Theory

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Author Info

  • 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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Related research

Keywords: European unemployment; geographical mobility; social capital;

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References

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  1. Belot, Michèle & Ermisch, John, 2006. "Friendship Ties and Geographical Mobility: Evidence from the BHPS," IZA Discussion Papers 2209, Institute for the Study of Labor (IZA).
  2. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
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  18. 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).
  19. repec:spo:wpecon:info:hdl:2441/8808 is not listed on IDEAS
  20. Krishna B. Kumar & John G. Matsusaka, 2004. "Village versus Market Social Capital: An Approach to Development," Development and Comp Systems 0408003, EconWPA.
  21. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Citations

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Cited by:
  1. Stephen Machin & Panu Pelkonen & Kjell Salvanes, 2008. "Education and Mobility," CEE Discussion Papers 0100, Centre for the Economics of Education, LSE.
  2. 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.
  3. Janiak, Alexandre, 2008. "Welfare in Models of Trade with Heterogeneous Firms," IZA Discussion Papers 3803, Institute for the Study of Labor (IZA).
  4. Quentin David & Alexandre Janiak & Etienne Wasmer, 2010. "Local social capital and geographical mobility," Sciences Po publications info:hdl:2441/5l6uh8ogmqi, Sciences Po.
  5. 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.

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