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Labor force diversity and firm survival

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  • Mikaela Backman
  • Janet E. Kohlhase

Abstract

We analyze the influence that the diversity of individuals, both within a firm and in the region where the firm is located, has on firm survival. We estimate a hazard model using microdata for Swedish firms for the years 2002–2013. Results show that firm‐specific diversity in education, age, and gender are positively associated with firm survival. However, firm‐specific diversity by place of origin is negatively associated with firm survival. Yet the cultural diversity among the inhabitants in the region where the firm is located enhances firm survival. Magnitudes of the effects vary by region and industrial sector.

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  • Mikaela Backman & Janet E. Kohlhase, 2020. "Labor force diversity and firm survival," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 903-928, November.
    • Handle: RePEc:bla:jregsc:v:60:y:2020:i:5:p:903-928
    DOI: 10.1111/jors.12488
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    Cited by:

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    2. Andrew J. Van Leuven & Sarah A. Low & Edward (Ned) Hill, 2023. "What side of town? How proximity to critical survival factors affects rural business longevity," Growth and Change, Wiley Blackwell, vol. 54(2), pages 352-385, June.
    3. Ceren Ozgen, 2021. "The economics of diversity: Innovation, productivity and the labour market," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1168-1216, September.
    4. Yang, Chaolin & Yan, Jingdong & He, Xiaodan & Tian, Shiqi, 2023. "What determines the survival of farmer entrepreneurship: Micro-evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 334-348.
    5. Carita Eklund & Kristof van Criekingen, 2022. "Fast as a gazelle – young firms gaining from educational diversity," Industry and Innovation, Taylor & Francis Journals, vol. 29(8), pages 927-947, September.
    6. Mikaela Backman & Janet E. Kohlhase, 2022. "Labor force diversity and new firm formation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 9-28, February.
    7. Tjaša Bartolj, 2023. "Should Firms Strive for the Educational Diversity of the Workforce? Estimation of the Impact of Firms’ Educational Structure on Sales Growth and Exports," SAGE Open, , vol. 13(1), pages 21582440231, February.

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