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Local social capital and geographical mobility

  • Quentin David

    (Département de Droit)

  • Alexandre Janiak

    (Departamento de Ingenieria Industrial (DII))

  • Etienne Wasmer

    (Département d'économie)

In the North of Europe, club membership is higher than in the South, but the frequency of contacts with friends, relatives and neighbors is lower. We link this fact to another one: the low geographical mobility rates in the South of Europe relative to the North. To interpret these facts, we build a model of local social capital and mobility. Investing in local ties is rational when workers do not expect to move to another region. We find that observationally close individuals may take different paths characterized by high local social capital, low mobility and high unemployment, vs. low social capital, high propensity to move and higher employment probability. Employment protection reinforces the accumulation of local social capital and thus reduces mobility. European data supports the theory: within a country and at the individual level, more social capital is associated with lower mobility.

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File URL: http://spire.sciencespo.fr/hdl:/2441/5l6uh8ogmqildh09h482kc28p/resources/1-s2.0-s0094119010000306-main.pdf
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Paper provided by Sciences Po in its series Sciences Po publications with number info:hdl:2441/5l6uh8ogmqildh09h482kc28p.

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Date of creation: Sep 2010
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Publication status: Published in Journal of Urban Economics, 2010, vol. 68, pp.191-204
Handle: RePEc:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h482kc28p
Contact details of provider: Web page: http://www.sciencespo.fr/

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  1. Quentin David & Alexandre Janiak & Etienne Wasmer, 2008. "Local social capital and geographical mobility. A theory," Documentos de Trabajo 248, Centro de Economía Aplicada, Universidad de Chile.
  2. Alberto Alesina & Yann Algan & Pierre Cahuc & Paola Giuliano, 2015. "Family Values And The Regulation Of Labor," Journal of the European Economic Association, European Economic Association, vol. 13(4), pages 599-630, 08.
  3. Quentin David & Alexandre Janiak & Etienne Wasmer, 2010. "Local social capital and geographical mobility," Post-Print hal-01024088, HAL.
  4. John Hassler & José Vicente Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2003. "A Positive Theory of Geographic Mobility and Social Insurance," Working Papers 86, Barcelona Graduate School of Economics.
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  13. Quentin Max David & Alexandre Janiak & Etienne Wasmer, 2010. "Local social capital and geographical mobility," ULB Institutional Repository 2013/133081, ULB -- Universite Libre de Bruxelles.
  14. Kamhon Kan, 2006. "Residential Mobility and Social Capital," IEAS Working Paper : academic research 06-A005, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  15. repec:spo:wpecon:info:hdl:2441/10055 is not listed on IDEAS
  16. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, July.
  17. Lars Ljungqvist & Thomas J. Sargent, 1995. "The European unemployment dilemma," Working Paper Series, Macroeconomic Issues 95-17, Federal Reserve Bank of Chicago.
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  24. Brunello, Giorgio & Garibaldi, Pietro & Wasmer, Etienne (ed.), 2007. "Education and Training in Europe," OUP Catalogue, Oxford University Press, number 9780199210978, July.
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  28. Schiff, Maurice, 2002. "Love thy neighbor: trade, migration, and social capital," European Journal of Political Economy, Elsevier, vol. 18(1), pages 87-107, March.
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  30. Ljungqvist, Lars & Sargent, Thomas J, 2002. "The European Employment Experience," CEPR Discussion Papers 3543, C.E.P.R. Discussion Papers.
  31. Spilimbergo, Antonio & Ubeda, Luis, 2004. "Family attachment and the decision to move by race," Journal of Urban Economics, Elsevier, vol. 55(3), pages 478-497, May.
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