EconPapers    
Economics at your fingertips  
 

Ethnic entrepreneurship, assimilation, and integration policy

Gergely Horváth and Rui Zhang

Journal of Public Economic Theory, 2022, vol. 24, issue 4, 781-816

Abstract: This paper studies the assimilation of ethnic minority individuals to the native labor market and the impact of integration policies on assimilation. In our theoretical model, ethnic individuals choose, depending on their productivity level, among: entrepreneurship, assimilating to the native labor market, and being employed by coethnic entrepreneurs. We find that when integration policies increase the returns of assimilation to the native labor market, there will be more ethnic entrepreneurs and more workers hired in the ethnic sector. This counter‐intuitive result is due to wage adjustment in the ethnic sector. In terms of social welfare, we find that the social planner prefers that more ethnic individuals assimilate to the native labor market relative to the decentralized equilibrium. We propose a policy mix that restores the efficiency of the equilibrium.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/jpet.12586

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:24:y:2022:i:4:p:781-816

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-10-15
Handle: RePEc:bla:jpbect:v:24:y:2022:i:4:p:781-816