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Cultural Identity, Mobility, and Decentralization

Author

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  • Christopher-Johannes Schild

    (University of Marburg)

  • Matthias Wrede

    (University of Marburg and CESifo)

Abstract

Regional cultural identity increases trust and facilitates interaction between native citizens ("social capital"). At the same time, it also affects non-native's migration decisions and their utility as it excludes non-native mobile workers from economic interaction within the region. Policies to increase regional cultural identity thus exert an externality that is negative for a basic model where future local productivity is exogenous and random, leading to the result of oversupply of regional culture under decentralization. If migration affects productivity, the basic result of oversupply may be reversed, depending on production technology and the government's objective function. Some positive and normative conclusions for cultural policy are derived.

Suggested Citation

  • Christopher-Johannes Schild & Matthias Wrede, 2010. "Cultural Identity, Mobility, and Decentralization," MAGKS Papers on Economics 201016, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201016
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    2. Vassilis Tselios & John Tomaney, 2019. "Decentralisation and European identity," Environment and Planning A, , vol. 51(1), pages 133-155, February.
    3. Bečica Jiří, 2018. "Income Self-Sufficiency and Profitability of Professional Theatres in the Czech Republic," Review of Economic Perspectives, Sciendo, vol. 18(3), pages 285-299, September.

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    More about this item

    Keywords

    Decentralization; Labor Mobility; Cultural Policy; Cultural Identity; Social Capital;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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