The Economic Characterization of Language and its Relation with Social Capital
DOI:
https://doi.org/10.3989/ris.2008.02.24Keywords:
Language Economy, market Failures, merit goods, network Externalities, Social capitalAbstract
In the context of its economic characterization, language can be treated as a merit good, and can, therefore, be considered the precondition for the existence of social capital. moreover, social capital makes belonging to a certain group beneficial to its members when referring to human aggregates such as a company, a neighbourhood or a city. These beneficial effects lead to improvements in production efficiency in the case of companies and an increase in socioeconomic status in the case of individuals. Thus, language has an important role in the creation of social capital, which is especially important to immigrants in a country where a different language is spoken.
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