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The economics of super-diversity: findings from British cities, 2001-2006

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  • Max Nathan

Abstract

British cities have a surprisingly long history of cultural diversity. Recently they have become significantly more multicultural, with ‘super-diversity’ emerging in many urban neighbourhoods. Public interest in these changes is high, but there has been little research assessing their impacts. This paper makes two contributions to the field. First, it assembles new data on UK urban areas 2001-6, using an innovative cultural-ethno-linguistic (CEL) measure of cultural diversity alongside more traditional measures. Second, it tests links between diversity, wages and employment rates at the urban level. As suggested by theory and international evidence, I find some positive associations between super-diversity and UK urban economic performance.

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File URL: http://eprints.lse.ac.uk/33578/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 33578.

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Length: 49 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:ehl:lserod:33578

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  1. 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.
  2. Masahisa Fujita & Marcus Berliant, 2004. "Knowledge Creation as a Square Dance on the Hilbert Cube," Econometric Society 2004 North American Summer Meetings 204, Econometric Society.
  3. Ottaviano, Gianmarco I.P. & Peri, Giovanni, 2005. "Cities and cultures," Journal of Urban Economics, Elsevier, vol. 58(2), pages 304-337, September.
  4. Klaus Desmet & Ignacio Ortuño-Ortín & Romain Wacziarg, 2009. "The political economy of ethnolinguistic cleavages," Working Papers 2009-17, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  5. Gilles Duranton & Diego Puga, 2000. "Nursery Cities: Urban diversity, process innovation, and the life-cycle of products," Working Papers dpuga-00-01, University of Toronto, Department of Economics.
  6. Duranton, Gilles & Puga, Diego, 2003. "Microfoundations of Urban Agglomeration Economies," CEPR Discussion Papers 4062, C.E.P.R. Discussion Papers.
  7. Albert Saiz, 2003. "Room in the Kitchen for the Melting Pot: Immigration and Rental Prices," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 502-521, August.
  8. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, vol. 24(3), pages 478-495, Autumn.
  9. Max Nathan, 2011. "The long term impacts of migration in British cities: diversity, wages, employment and prices," LSE Research Online Documents on Economics 33577, London School of Economics and Political Science, LSE Library.
  10. Alan Manning & Sanchari Roy, 2007. "Culture clash or culture club? The identity and attitudes of immigrants in Britain," LSE Research Online Documents on Economics 19729, London School of Economics and Political Science, LSE Library.
  11. Edward P. Lazear, 1998. "Diversity and Immigration," NBER Working Papers 6535, National Bureau of Economic Research, Inc.
  12. Combes, Pierre-Philippe & Duranton, Gilles & Overman, Henry G., 2005. "Agglomeration and the Adjustment of the Spatial Economy," CEPR Discussion Papers 5028, C.E.P.R. Discussion Papers.
  13. Giovanni Prarolo & Elena Bellini & Gianmarco I.P. Ottaviano & Dino Pinelli, 2009. "Cultural Diversity and Economic Performance: Evidence from European Regions," Working Papers 2009.63, Fondazione Eni Enrico Mattei.
  14. William R. Kerr, 2005. "Ethnic Scientific Communities and International Technology Diffusion," Harvard Business School Working Papers 06-022, Harvard Business School, revised Apr 2007.
  15. Alberto Alesina & Eliana La Ferrara, 2004. "Ethnic Diversity and Economic Performance," NBER Working Papers 10313, National Bureau of Economic Research, Inc.
  16. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  17. Ash Amin, 2002. "Ethnicity and the multicultural city: living with diversity," Environment and Planning A, Pion Ltd, London, vol. 34(6), pages 959-980, June.
  18. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  19. Hong, Lu & Page, Scott E., 2001. "Problem Solving by Heterogeneous Agents," Journal of Economic Theory, Elsevier, vol. 97(1), pages 123-163, March.
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Cited by:
  1. Crescenzi, Riccardo & Nathan, Max & Rodríguez-Pose, Andrés, 2013. "Do inventors talk to strangers? On proximity and collaborative knowledge creation," CEPR Discussion Papers 9777, C.E.P.R. Discussion Papers.
  2. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers 0149, Spatial Economics Research Centre, LSE.
  3. Longhi, Simonetta, 2013. "Impact of cultural diversity on wages, evidence from panel data," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 797-807.
  4. Luisa Gagliardi, 2011. "Does Skilled Migration Foster Innovative Performance? Evidence from British Local Areas," SERC Discussion Papers 0097, Spatial Economics Research Centre, LSE.

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