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Productivity, Social Interaction andCommunication

Published online by Cambridge University Press:  17 August 2016

Gilles Saint-Paul*
Affiliation:
IDEI, Université des Sciences Sociales de Toulouse, and CEPR; CESIfo and IZA; French Ministry of Environnement
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Summary

In this paper, we study how, depending on the sociological and technologicalcharacteristics of the economy, a “unified” or, on the contrary, astratified way of communicating may emerge. Communication takes place lessefficiently in the stratified case, because people who spend differentlanguages cannot communicate with each other.

The main results of the paper are as follows. First, the equilibrium degreeof literacy is suboptimally low because of the “thin market externality”associated with the language. Second, social stratification generateslinguistic stratification and the associated output and welfare losses dueto communication failure. Third, because of the thin market externality,there is too much stratification. Fourth, specialized technologies are lessvulnerable to stratification than flexible ones, or, equivalently, increasedflexibility may have adverse effects on output when society isstratified.

Résumé

Résumé

Dans cet article, nous étudions comment une manière de communiquer « unifiée» ou, au contraire, « stratifiée » peut apparaître selon lescaractéristiques sociologiques ou technologique d’une économie. Lacommunication est moins efficace dans le cas stratifié parce que les gensqui parlent différentes langues ne peuvent pas communiquer entre eux.

Les principaux résultats sont les suivants: premièrement, le niveaud’instruction à l’équilibre est sous-optimalement faible à cause de « lafaible externalité de marché » associée à la langue. Deuxièment, lastratification sociale fait naître une stratification linguistique etconduit, en raison des échecs de communication, à une diminution de laproduction et du bien-être. Troisièmement, la faible externalité de marchéentraine trop de stratification. Quatrièmement, les technologiesspécialisées sont moins vulnérables à la stratification que les technologiesflexibles, ou en d’autres termes, l’accroissement de la flexibilité peutavoir des effets pervers sur la production lorsque la société eststratifiée.

Information

Type
II. Labor Economics and Human Capital Investments
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002 

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Footnotes

*

I am grateful to two anonymous referees, as well as participants to seminars in Paris, Bern, and the Universitat Pompeu Fabra Economics Department Wine Tasting Seminar for helpful comments and suggestions. This paper was first written in 1995.

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