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Productivity, Social Interaction and Communication

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 technological characteristics of the economy, a “unified” or, on the contrary, a stratified way of communicating may emerge. Communication takes place less efficiently in the stratified case, because people who spend different languages cannot communicate with each other.

The main results of the paper are as follows. First, the equilibrium degree of literacy is suboptimally low because of the “thin market externality” associated with the language. Second, social stratification generates linguistic stratification and the associated output and welfare losses due to communication failure. Third, because of the thin market externality, there is too much stratification. Fourth, specialized technologies are less vulnerable to stratification than flexible ones, or, equivalently, increased flexibility may have adverse effects on output when society is stratified.

Résumé

Résumé

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

Les principaux résultats sont les suivants: premièrement, le niveau d’instruction à l’équilibre est sous-optimalement faible à cause de « la faible externalité de marché » associée à la langue. Deuxièment, la stratification sociale fait naître une stratification linguistique et conduit, en raison des échecs de communication, à une diminution de la production et du bien-être. Troisièmement, la faible externalité de marché entraine trop de stratification. Quatrièmement, les technologies spécialisées sont moins vulnérables à la stratification que les technologies flexibles, ou en d’autres termes, l’accroissement de la flexibilité peut avoir des effets pervers sur la production lorsque la société est stratifiée.

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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