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Immigrants, Trust, and Social Traps

Marini, Annalisa (2016): Immigrants, Trust, and Social Traps.

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Abstract

The paper estimates a social interactions model to study the impact of culture on US immigrants' decisions. The paper contributes to the literature as follows. It first estimates a social interactions model of peer effects that models both group formation and the formation of social interactions. In addition, because it is an observational learning model, policy suggestions may be drawn to favor integration of immigrants. Finally, it provides a new empirical strategy to study the impact of both inherited and contemporaneous culture on individual decisions. Findings vary by group of immigrants and by type of social interactions, and they are robust to both additional checks and sensitivity analysis.

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