Linguistic and Cultural Assimilation as a Human Capital Process∗ JOB MARKET PAPER CLICK HERE FOR THE LATEST VERSION James Marroney March 10, 2017 Abstract I develop a learning-by-doing theory of cultural assimilation, in which an individual's cultural identity is determined by past investments in culture-specific social capital. The model incorporates several empir- ically relevant aspects of assimilation that have been difficult to explain in past models. The mechanism in my model yields two possible qualitative outcomes of the assimilation process, depending on the in- tertemporal complementarities of investment. The first, in which individuals become more homogeneous over time, has been used to explain immigrants' wage assimilation. The second, in which individuals become more heterogeneous as some assimilate and some do not, has vastly different implications for im- migration and integration policies. Using detailed datasets from three immigrant destination countries, I provide a variety of evidence from linguistic, identity, and religiosity measures that cultural assimilation (in contrast to economic assimilation) most closely resembles the second type of process. ∗Many thanks to Steven Durlauf, John Eric Humphries, Ed Lazear, Casey Mulligan, Kevin Murphy, Maureen Pirog, Karl Schurter, Kevin Tsui, and seminar audiences at the UChicago Applications Workshop, University of Wisconsin-Madison, WEAI Graduate Student Workshop, RAND Corporation, and Clemson University for helpful comments. yUniversity of Chicago, 1126 E. 59th St., Chicago, IL 60637,
[email protected] 1 Contents 1 Introduction 3 2 Motivating Facts and Features of Assimilation 5 2.1 Culture is an Abstract Stock . .5 2.2 Assimilation is a Dual Process . .6 2.3 Assimilation is Time-Dependent .