Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35699
Authors: 
Epstein, Gil S.
Heizler, Odelia
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4234
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.
Subjects: 
Network formations
social networks
assimilation and separation
JEL: 
D85
J15
F22
A14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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