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The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League

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Author Info

  • Leo Kahane

    (Providence College)

  • Neil Longley

    (University of Massachusetts, Amherst)

  • Robert Simmons

    (Lancaster University Management School)

Abstract

This paper uses data from the National Hockey League (NHL) to consider the potential gains to firms from employing culturally diverse work teams. It finds that the presence of foreign workers does increase firm-level performance: NHL teams that employed a higher proportion of European players performed better. However, the results also indicate that teams perform better when their European players come from the same country rather than being spread across many European countries. When teams have players from a wide array of European countries, integration costs associated with language and cultural differences may start to override any gains from diversity. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 95 (2013)
Issue (Month): 1 (March)
Pages: 302-314

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Handle: RePEc:tpr:restat:v:95:y:2013:i:1:p:302-314

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

Related research

Keywords: workplace diversity; heterogeneity; cultural diversity; language diversity; National Hockey League;

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References

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  1. Frederick Wiseman & Sangit Chatterjee, 2003. "Team payroll and team performance in major league baseball: 1985-2002," Economics Bulletin, AccessEcon, vol. 1(2), pages 1-10.
  2. repec:ebl:ecbull:v:1:y:2003:i:2:p:1-10 is not listed on IDEAS
  3. Zak, Thomas A & Huang, Cliff J & Siegfried, John J, 1979. "Production Efficiency: The Case of Professional Basketball," The Journal of Business, University of Chicago Press, vol. 52(3), pages 379-92, July.
  4. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "The economic value of cultural diversity: evidence from US cities," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 9-44, January.
  5. Dawson, Peter & Dobson, Stephen & Gerrard, Bill, 2000. "Estimating Coaching Efficiency in Professional Team Sports: Evidence from English Association Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 399-421, September.
  6. Stefan Szymanski, 2000. "A Market Test for Discrimination in the English Professional Soccer Leagues," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 590-603, June.
  7. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer, vol. 27(1), pages 47-71, 08.
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Citations

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Cited by:
  1. Dennis Coates & Sara Azmoudeh Fard, 2011. "Returns to handedness in professional hockey," Working Papers 1121, International Association of Sports Economists & North American Association of Sports Economists.
  2. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2012. "Cultural Diversity and Plant‐Level Productivity," IZA Discussion Papers 6845, Institute for the Study of Labor (IZA).
  3. Dr Alex Bryson, 2010. "Heterogeneous Worker Ability and Team-based Production: Evidence from Major League Baseball, 1920-2009," NIESR Discussion Papers 2737, National Institute of Economic and Social Research.
  4. Rosendahl Huber, Laura & Sloof, Randolph & van Praag, Mirjam, 2014. "Jacks-of-All-Trades? The Effect of Balanced Skills on Team Performance," IZA Discussion Papers 8237, Institute for the Study of Labor (IZA).
  5. Allen N. Berger & Thomas Kick & Klaus Schaeck, 2012. "Executive Board Composition and Bank Risk Taking," Working Papers 12004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).

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