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Effect of diversity on turnover: A large case study

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Author Info
Jonathan S. Leonard
David I. Levine

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Abstract

Using longitudinal data collected in 1996-98 from over 800 similar workplaces owned and operated by a single corporation, the authors examine how workplace diversity and employee isolation along the dimensions of gender, race, and age affected employee turnover. Their design controls for much of the variation in job characteristics and labor markets that have confounded other studies of diversity. They use the non-linearity of diversity to distinguish its effect from the main effects of demographic groups and from isolation (being in a numerical minority). The study examines how diversity and isolation by race (white, black, Hispanic, Asian), sex, and age affected different groups. The authors find no consistent evidence that diversity itself increased turnover. In contrast, isolation from coworkers and from customers was often associated with higher turnover. (Free full-text download available at http://digitalcommons.ilr.cornell.edu/ilrreview/.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 59 (2006)
Issue (Month): 4 (July)
Pages: 547-572
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Handle: RePEc:ilr:articl:v:59:y:2006:i:4:p:547-572

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  1. Jonathan Leonard & David Levine, 2003. "Diversity, discrimination, and performance," Institute for Research on Labor and Employment, Working Paper Series 1029, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  2. Haile, Getinet Astatike, 2009. "Unhappy Working with Men? Workplace Gender Diversity and Employee Job-Related Well-Being in Britain: A WERS2004 Based Analysis," IZA Discussion Papers 4077, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Haile, Getinet Astatike, 2009. "Workplace Disability Diversity and Job-Related Well-Being in Britain: A WERS2004 Based Analysis," IZA Discussion Papers 3993, Institute for the Study of Labor (IZA). [Downloadable!]
  4. David M. Blau & Tetyana Shvydko, 2007. "Labor Market Rigidities and the Employment Behavior of Older Workers," IZA Discussion Papers 2996, Institute for the Study of Labor (IZA). [Downloadable!]
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