A model is set up where migrants must choose a level of social traits and consumption of
ethnic goods. As the consumption level of ethnic goods increases, the migrants become ever
more different to the local population and are less assimilated. Less assimilation affects the
reaction of the local population to the migrants and their willingness to accept the
newcomers. This social phenomenon and affects wages and unemployment. We show that
the growth in the unemployment and social benefits of legal migrants increases the
consumption of ethnic goods, thus creating a trap wherein the willingness of the local
population to accept the migrants into the economy decreases. This process also increases the
probability of the migrants’ dependence on the welfare state. On the other hand, illegal
migrants could play an important role in the assimilation of the legal migrants.