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Autonomy, Social Interactions and Culture

Marini, Annalisa and Navarra, Pietro (2016): Autonomy, Social Interactions and Culture.

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Abstract

The present paper, using a social interactions model, studies the impact of culture on autonomy of immigrants. The results suggest that: (i) immigrants' autonomy is largely influenced by the autonomy of individuals living in a host country; (ii) some immigrants are better off in countries and regions with better institutional environments. The results are robust to sensitivity checks. The contributions of the paper are as follows. First, we estimate a social interactions model that models both the formation of social interactions and the sorting of individuals to study the impact of culture on individual autonomy. Second, we estimate a model that analyzes the impact of both confidence in the individual and collective culture on individuals' decisions. Finally, since this is an observational learning model, policy suggestions may be drawn from the analysis.

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