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Social Capital, Labor Mobility, and Welfare

The Impact of Uniting States

Bibliographic Data

ID5917631
AuthorsMaurice Schiff (0000-0002-4292-8005, World Bank, corresponding author)
Year1992
Volume4
Issue2
Pages157-175
Publication date1992-04-01
Open AccessYes
TypeARTICLE
VenueRationality and Society (JOURNAL)
Journal identifiersISSN: 1043-4631 • E-ISSN: 1461-7358
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/1043463192004002003
OpenAlexW2167033413
LanguageEN
Citations received26
References cited8

It is generally assumed that a technological or political change resulting in greater labor mobility raises welfare because it allows labor to move to where returns are higher and exploit profit opportunities. This article argues that the impact on welfare is ambiguous because of a negative externality of migration. Society benefits from a common property resource. That resource is social capital and includes the network of relations among people. Someone who migrates imposes a cost on those left behind which is not internalized. Hence migration will be excessive, and an increase in labor mobility will not necessarily raise welfare. Several implications are examined, including the impact of changes in the size of the labor market and the impact of modern society and colonialism on the social structure of traditional societies

Economics · Exploit · Externality · Labor mobility · Labour economics · Market economy · Microeconomics · Political science · Politics · Social Welfare · Welfare · Gender, Labor, and Family Dynamics · Income, Poverty, and Inequality · Migration and Labor Dynamics

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Citations per year0.93
Citation span1998 - 2026 (29)
Highly citedNo

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