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Cultural and Economic Integration of Immigrant Minorities: Analytical Framework and Policy Implications

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  • Gradstein, Mark
  • Justman, Moshe

Abstract

The cultural diversity that new immigrants bring to the host economy is potentially beneficial for the productivity of both immigrants and natives, but immigrants must assimilate to some extent for these benefits to be realized. In general, immigrants assimilate more slowly than natives would like, as they ignore the external material benefits of assimilation for natives and their resistance to foreign cultural influences. We develop a formal framework that highlights the complementarity between immigrants’ cultural assimilation, economic integration, and investment in human capital, indicating the scope for mutually beneficial policies, offering immigrants material incentives to assimilate more rapidly.

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  • Gradstein, Mark & Justman, Moshe, 2023. "Cultural and Economic Integration of Immigrant Minorities: Analytical Framework and Policy Implications," CEPR Discussion Papers 18236, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18236
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    Keywords

    Immigration;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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