Do people accept different cultures?

With the rapid growth of international migration worldwide in the last decades, the issue of immigrant integration in the receiving society has attracted considerable attention from both researchers and policy makers alike. Therefore, this study presents a model of the preferences of a minority group of immigrants and a majority group of natives for different cultures when there is an increase in the number of immigrants. Our results show that the number of firms producing minority-specific goods monotonically increases or exhibits an inverted U-shape. Additionally, we show that individuals who belong to the minority tend to accept different cultures, whereas those who belong to the majority tend to accept a different culture initially but may reject it later. Further, we also show that the majority and minority groups tend to be residentially segregated, with both accepting different culture-specific goods. From a theoretical viewpoint, these results support the existing literature.