Network Formations among Immigrants and Natives

Gil Epstein and Heizler (Cohen), Odelia ()
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Heizler (Cohen), Odelia: Academic College of Tel-Aviv Yaffo

No 4234, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we examine possible network formations among immigrants and natives with endogenous investment. We consider a model of a network formation where the initiator of the link bears its cost while both agents benefit from it. We present the model by considering possible interactions between immigrants and the new society in the host country: assimilation, separation, integration and marginalization. The paper highlights different aspects of immigrants’ behavior and their interaction with the members of the host country (society) and their source country (society). We found that when the stock of the immigrants in the host country increases, the immigrants' investment in the middlemen increases and the natives may bear the cost of link formation with the middlemen.

Keywords: assimilation and separation; social networks; network formations (search for similar items in EconPapers)
JEL-codes: A14 D85 F22 J15 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009-06
New Economics Papers: this item is included in nep-mig and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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