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Racial Diversity and Aggregate Productivity in US Industries: 1980-2000

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Author Info
Sparber, Chad () (Department of Economics, Colgate University)

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Abstract

This paper employs industry-level US Census data from 1980-2000 to assess the aggregate effects of racial diversity. While most international accounts find that diversity reduces productivity, I argue that the US experience is more nuanced. Unqualified statements about the costs and merits of diversity are unwarranted, as racial heterogeneity increases productivity within many, but not all, industries. Sectors employing a large number of workers responsible for creative decision-making and customer service experience gains from diversity, while industries characterized by high levels of group effort suffer losses. The results thus reconcile two competing literatures by suggesting that diversity improves decision-making and problem solving, but also encumbers common action and public goods provision.

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File URL: http://people.colgate.edu/csparber/Industry.pdf
File Format: application/pdf
File Function: First Version, 2004
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Publisher Info
Paper provided by Department of Economics, Colgate University in its series Working Papers with number 2007-02.

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Length: 28 pages
Date of creation: 30 Nov 2007
Date of revision:
Handle: RePEc:cgt:wpaper:2007-02

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Web page: http://www.colgate.edu/econ/
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Related research
Keywords: Racial Diversity; Productivity;

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Find related papers by JEL classification:
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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  1. Giovanni Peri & Chad Sparber, 2008. "Highly-Educated Immigrants and Native Occupational Choice," CReAM Discussion Paper Series 0813, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
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This page was last updated on 2009-11-19.


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