Local social capital and geographical mobility
Quentin David,
Alexandre Janiak and
Etienne Wasmer
DEM Discussion Paper Series from Department of Economics at the University of Luxembourg
Abstract:
In this paper, we attempt to understand the determinants of mobility through introducing the concept of local social capital. Investing in local ties is rational when workers do not expect to move to another region, and reciprocally, once local social capital is accumulated, incentives to move are reduced. We build a model to illustrate several types of complementarities: observationally close individuals may take di¤erent paths characterized by high local social capital and low mobility vs. low social capital and high propensity to move. Employment protection reinforces the accumulation of local social capital and thus reduces mobility. Externalities generate multiple equilibria in which mobility and social capital are negatively correlated across equilibria. European data supports the theory: the South of Europe is characterized by both low mobility and local social capital, while the North of Europe has higher mobility and a more general type of social capital. Within a country and at the individual level, more social capital is associated with lower mobility.
Keywords: European unemployment; Geographical mobility; Social capital (search for similar items in EconPapers)
JEL-codes: A10 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-geo, nep-mig, nep-soc and nep-ure
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Citations: View citations in EconPapers (40)
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http://wwwen.uni.lu/content/download/24103/292596/ ... hical%20mobility.pdf (application/pdf)
Related works:
Journal Article: Local social capital and geographical mobility (2010)
Working Paper: Local social capital and geographical mobility (2010)
Working Paper: Local social capital and geographical mobility (2010)
Working Paper: Local social capital and geographical mobility (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:09-11
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