Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222173
Authors: 
Prinz, Aloys
Siegel, Melissa
Year of Publication: 
2019
Citation: 
[Journal:] IZA Journal of Development and Migration [ISSN:] 2520-1786 [Volume:] 10 [Year:] 2019 [Issue:] 1 [Pages:] 1-20
Abstract: 
Besides effects on economic well-being, migration of people with distant cultural backgrounds may also have large effects on people's cultural identity. In this paper, the identity economics of Akerlof and Kranton (2000) is applied to migration. Accordingly, it is assumed that the utility of both the immigrants and the native population encompasses economic well-being and cultural identity. The migration effect on cultural identity depends, among others, on the distance between cultures. In a simple immigration game it is shown that immigrants may prefer to live rather in diaspora communities than to integrate into the host countries' culture. This subgame-perfect equilibrium choice of immigrants seems the more likely the greater the cultural distance between their country of origin and the destination country is. Among the available policy instruments, restrictions on the freedom of movement and settlement of immigrants may be the most effective way to prevent the setup of large diaspora communities. For young immigrants and later generations of immigrants, integration via compulsory schooling is the most important policy. In general, cultural, religious and social institutions may support integration.
Subjects: 
Akerlof-Kranton game
cultural identity
diaspora
economic well-being
identity economics
immigration
JEL: 
D91
I31
J15
J61
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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