IZA DP No. 5059: A Political Economy of the Immigrant Assimilation: Internal Dynamics
published in: Gil S. Epstein and Ira N. Gang (eds.), Migration and Culture, Frontiers of Economics and Globalization, Vol. 8, Emerald Publishing, Bingley, 2010, 325-339
Within immigrant society different groups wish to help the migrants in different ways – immigrant societies are multi-layered and multi-dimensional. We examine the situation where there exists a foundation that has resources and that wishes to help the migrants. To do so they need migrant groups to invest effort in helping their country-folk. Migrant groups compete against one another by helping their country-folk and to win grants from the foundation. We develop a model that considers how such a competition affects the resources invested by the groups’ supporters and how beneficial it is to immigrants. We consider two alternative rewards systems for supporters – absolute and relative ranking – in achieving their goals.