Abstract

AbstractWe present a basic theoretical framework of ethnic identity, i.e., the level of immigrant's commitment to his or her host society as well as the immigrant's commitment to his or her home society. Our model can explain the emerging empirical literature which studies the effect of the immigrants' characteristics, such as age, gender, education, religion, age at arrival, stock of immigrants in the host country, etc., on their ethnic identity (such as theEthnosizer). In addition, this paper can be used as a basis for future empirical and theoretical research on this topic.JEL classification:F22, J15, Z13.

Highlights

  • Immigrants experience high unemployment and earn less than natives in many countries

  • We found that the cultural distance between the host country and the home country increases the relative cost of investing in natives' network and decreases the ethnic identity with the host society

  • We provide some theoretical explanations for the different empirical results presented in the literature on ethnic identification

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Summary

Introduction

Immigrants experience high unemployment and earn less than natives in many countries. Suppose that the cultural distance between the host society and the source society, d, increases or, alternatively, that the immigrant's age at arrival increases such that the relative cost of investment in the native compared to migrant network, α, increases.

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