Migration and the Value of Social Networks

Joshua Blumenstock, Guanghua Chi and Xu Tan

No 13611, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: What is the value of a social network? Prior work suggests two distinct mechanisms that have historically been difficult to differentiate: as a conduit of information, and as a source of social and economic support. We use a rich 'digital trace' dataset to link the migration decisions of millions of individuals to the topological structure of their social networks. We find that migrants systematically prefer 'interconnected' networks (where friends have common friends) to 'expansive' networks (where friends are well connected). A micro-founded model of network-based social capital helps explain this preference: migrants derive more utility from networks that are structured to facilitate social support than from networks that efficiently transmit information.

Keywords: Networks; Migration; Social Networks; Social capital; Big data; Development (search for similar items in EconPapers)
JEL-codes: C55 D85 O12 O15 R23 Z13 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-big, nep-ict, nep-int, nep-mig, nep-net, nep-pay, nep-soc, nep-upt and nep-ure
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Citations: View citations in EconPapers (32)

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