Working Paper: CEPR ID: DP14008
Authors: Mark Gradstein; Moshe Justman
Abstract: International migration offers the potential for mutual economic gain—for migrants and their host countries—through an efficient reallocation of human resources and a fruitful meeting of cultures, even as cultural frictions may threaten their shared social fabric. Immigrants and natives have a common interest in prospering through cooperation but may have opposing views on how quickly immigrants should assimilate. Confrontation between the two populations can lead to immigrants culturally disengaging from the mainstream, and retard their economic integration. This paper analyzes these reciprocal cultural and economic effects, indicating the scope for growth-promoting and welfare enhancing assimilation policies.
Keywords: No keywords provided
JEL Codes: O11; Z10; Z18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| immigration (F22) | economic gains (O49) |
| cultural diversity (Z10) | economic growth (O49) |
| cultural frictions (Z19) | social polarization (R28) |
| social polarization (R28) | economic integration (F15) |
| social polarization (R28) | economic growth (O49) |
| government intervention (O25) | assimilation (Y60) |
| assimilation (Y60) | Pareto improvements (D61) |