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Cities and Cultures

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Author Info
Ottaviano, Gianmarco Ireo Paolo
Peri, Giovanni

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Abstract

We investigate the existence of wage premium due to cultural diversity across US cities. Using census data from 1970 to 1990, we find that at the urban level richer diversity is systematically associated with higher average nominal wages for white US-born males. We measure cultural diversity in a city using the variety of languages spoken by city-residents. While the positive correlation between wages and diversity survives a battery of robustness checks, it seems to be larger once foreign cultures have been assimilated. Finally, instrumental variable estimation hints at causation going from diversity to wages. Comparing real and nominal wages across cities, we interpret these results as evidence that diversity enhances productivity.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4438.

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Date of creation: Jun 2004
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Handle: RePEc:cpr:ceprdp:4438

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Related research
Keywords: cultural diversity; metropolitan areas; productivity; wages;

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

References listed on IDEAS
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    Other versions:
  5. Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gianmarco I P Ottaviano & Giovanni Peri, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," Working Papers 2008.77, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  2. Oded Galor & Quamrul Ashraf, 2008. "Human Genetic Diversity and Comparative Economic Development," Working Papers 2008-3, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  3. Mellander, Charlotta, 2008. "Occupational Distribution within Swedish Industries - an identification and market relation analysis," Working Paper Series in Economics and Institutions of Innovation 150, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  4. Gianmarco I.P. Ottaviano & Giovanni Prarolo, 2009. "Cultural Identity and Knowledge Creation in Cosmopolitan Cities," Working Papers 2009.72, Fondazione Eni Enrico Mattei. [Downloadable!]
  5. Trippl, Michaela & Maier, Gunther, 2007. "Knowledge Spillover Agents and Regional Development," Papers DYNREG16, Economic and Social Research Institute (ESRI). [Downloadable!]
    Other versions:
  6. Florida, Richard & Mellander, Charlotta & Qian, Haifeng, 2008. "Creative China? The University, Tolerance and Talent in Chinese Regional Development," Working Paper Series in Economics and Institutions of Innovation 145, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
  7. BEHRENS, Kristian & SATO, Yasuhiro, 2006. "Labor market integration and migration: impacts on skill formation and the wage structure," CORE Discussion Papers 2006001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
  8. Mercedes Teruel-Carrizosa & Agustí Segarra-Blasco, 2008. "Immigration and Firm Growth: Evidence from Spanish cities," Working Papers XREAP2008-11, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2008. [Downloadable!]
  9. Aleid Elizabeth Brouwer & Arjen Van Witteloostuijn & Christophe Boone, 2006. "The Dynamics of Economic Performance and Organizational Diversity. An Empirical Study in Zwolle, the Netherlands, 1850-1914," ERSA conference papers ersa06p112, European Regional Science Association. [Downloadable!]
  10. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," NBER Working Papers 10904, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Fu, Shihe & Hong, Junjie, 2008. "Testing urbanization economies in manufacturing industries: urban diversity or urban size?," MPRA Paper 10078, University Library of Munich, Germany. [Downloadable!]
  13. Elena Fumagalli & laura Fumagalli, 2009. "Like oil and water or chocolate and peanut butter? Ethnic diversity and social participation of young people in England," Working Papers 2009_21, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
  14. Roberto Cellini, 2007. "Migration and welfare: a very simple model," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(7), pages 885-894. [Downloadable!]
  15. Maier, Gunther & Kurka, Bernhard & Trippl, Michaela, 2007. "Knowledge Spillover Agents and Regional Development: Spatial Distribution and Mobility of Star Scientists," Papers DYNREG17, Economic and Social Research Institute (ESRI). [Downloadable!]
  16. 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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