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Cultural Identity, Mobility, and Decentralization

Christopher Schild () and Matthias Wrede ()

No 201016, MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: Regional cultural identity increases trust and facilitates interaction between native citizens ("social capital"). At the same time, it also affects non-native's migration decisions and their utility as it excludes non-native mobile workers from economic interaction within the region. Policies to increase regional cultural identity thus exert an externality that is negative for a basic model where future local productivity is exogenous and random, leading to the result of oversupply of regional culture under decentralization. If migration affects productivity, the basic result of oversupply may be reversed, depending on production technology and the government's objective function. Some positive and normative conclusions for cultural policy are derived.

Keywords: Decentralization; Labor Mobility; Cultural Policy; Cultural Identity; Social Capital (search for similar items in EconPapers)
JEL-codes: H72 H73 J61 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cul, nep-evo, nep-geo, nep-mig, nep-soc and nep-ure
Date: 2010
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http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/16-2010_schild.pdf First version, 2010 (application/pdf)

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Journal Article: Cultural identity, mobility and decentralization (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201016

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