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Should I Stay or Should I Go? Regional Mobility and Social Capital

Author Info

Listed author(s):
  • Michael Bräuninger
  • Andreia Tolciu

Abstract

This paper explores the effect of social capital on mobility, and the role of mobility in the decision to invest in social capital. At the end of a period, in which individuals work and invest in regionally immobile social capital, there may be an income shock. Given a negative shock, individuals have to decide whether to move so they can maintain their income but lose social capital, or to stay in the region, accepting the income loss but retaining their social capital. As a result, the effects of labour market shocks on mobility patterns depend on social environments.

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Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 167 (2011)
Issue (Month): 3 (September)
Pages: 434-444

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201109)167:3_434:sisosi_2.0.tx_2-e
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Keywords:

Find related papers by JEL classification:

  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
  • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

References listed on IDEAS
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  1. Quentin David & Alexandre Janiak & Etienne Wasmer, 2008. "Local Social Capital and Geographical Mobility: A Theory," Working Papers hal-00972827, HAL.
  2. Gil S. Epstein & Ira N. Gang, 2006. "The Influence of Others on Migration Plans," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 652-665, November.
  3. Kan, Kamhon, 2007. "Residential mobility and social capital," Journal of Urban Economics, Elsevier, vol. 61(3), pages 436-457, May.
  4. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
  5. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November.
  6. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
  7. repec:spo:wpecon:info:hdl:2441/10055 is not listed on IDEAS
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Cited by:

  1. Caliendo, Marco & Künn, Steffen & Mahlstedt, Robert, 2017. "The return to labor market mobility: An evaluation of relocation assistance for the unemployed," Journal of Public Economics, Elsevier, vol. 148(C), pages 136-151.

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