Residential mobility, social capital and trust: evidence from a natural experiment

Project Identification
GA18-16111S
Project Period
1/2018 - 12/2020
Investor / Pogramme / Project type
Czech Science Foundation
MU Faculty or unit
Faculty of Economics and Administration
Investor logo

In our research we examine the enduring effects of social capital destruction. We exploit historical shock created by the post-war expulsion of ethnic Germans and subsequent resettlement of empty villages in current Czech Republic. The social capital theory predicts that new communities created in resettled villages may be trapped in low-social capital equilibrium (as indicated by our initial findings). We set three objectives to study the theoretical implications in different scenarios: (1) we use panel data on residential mobility to test if low social capital leads to higher out migration and long-distance moves; (2) we examine migration responses to economic and environmental factors and use the resettlement process as an instrument of migration propensity; (3) we use modified trust game to test for a direct evidence of long lasting effect of resettlement on social capital. The project aims to prove persistency and causal effect of social capital on various aspects of migration behaviour.

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