Cultural and Economic Integration of Immigrant Minorities: Analytical Framework and Policy Implications

Mark Gradstein and Moshe Justman

No 18236, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The cultural diversity that new immigrants bring to the host economy is potentially beneficial for the productivity of both immigrants and natives, but immigrants must assimilate to some extent for these benefits to be realized. In general, immigrants assimilate more slowly than natives would like, as they ignore the external material benefits of assimilation for natives and their resistance to foreign cultural influences. We develop a formal framework that highlights the complementarity between immigrants’ cultural assimilation, economic integration, and investment in human capital, indicating the scope for mutually beneficial policies, offering immigrants material incentives to assimilate more rapidly.

Keywords: Immigration (search for similar items in EconPapers)
JEL-codes: O11 Z10 Z18 (search for similar items in EconPapers)
Date: 2023-06
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Journal Article: Cultural and economic integration of immigrant minorities: Analytical framework and policy implications (2023)
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