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Diversity and employment prospects: neighbors matter!

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  • Camille Hémet

    (Universidad de Barcelona & IEB)

Abstract

This paper explores how diversity affects individuals’ employment prospects, using data from the French Labor Force Survey. Employment correlates positively with local labor market diversity, but negatively with neighborhood diversity. Using an instrumental variable approach to deal with local labor market diversity drives the positive correlation to zero, confirming the suspicion of self-selection. Regarding neighborhood diversity, I adopt the strategy of Bayer et al. (2008), taking advantage of the very precise localization of the data: the negative effect of diversity is reinforced. I also show that nationalitybased diversity matters more than parents’ origin-based diversity, giving insights on the underlying mechanisms.

Suggested Citation

  • Camille Hémet, 2015. "Diversity and employment prospects: neighbors matter!," Working Papers 2015/4, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:2013/6/doc2015-4
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    Cited by:

    1. Chareyron, Sylvain & Chung, Amélie & Domingues, Patrick, 2021. "Ethnic diversity and educational success: Evidence from France," Research in Economics, Elsevier, vol. 75(2), pages 133-143.
    2. Zenou, Yves & Biavaschi, Costanza & Giulietti, Corrado, 2021. "Social Networks and (Political) Assimilation in the Age of Mass Migration," CEPR Discussion Papers 16182, C.E.P.R. Discussion Papers.
    3. Sylvain Chareyron & Patrick Domingues & Lucie Fotsa Lieno-Gaillardon, 2021. "Does Social Interaction Matter for Welfare Participation?," Annals of Economics and Statistics, GENES, issue 141, pages 49-70.
    4. Chareyron, Sylvain & L'Horty, Yannick & Mbaye, Souleymane & Petit, Pascale, 2023. "Reducing ethnic discrimination through formal warning: Evidence from two combined field experiments," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    5. Alexander M. Danzer & Carsten Feuerbaum & Marc Piopiunik & Ludger Woessmann, 2022. "Growing up in ethnic enclaves: language proficiency and educational attainment of immigrant children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1297-1344, July.
    6. ,, 2020. "Unemployment and Crime Victimization: a Local Approach," CEPR Discussion Papers 14947, C.E.P.R. Discussion Papers.
    7. Matthieu Solignac & Maxime Tô, 2018. "Do Workers Make Good Neighbours? The Impact of Local Employment on Young Male and Female Entrants to the Labour Market," Annals of Economics and Statistics, GENES, issue 130, pages 167-198.
    8. Jones, Daniel B. & Zhan, Crystal, 2020. "Ethnic diversity and citizens’ support for local public good provision: Evidence from California parcel tax elections," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 108-130.

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    More about this item

    Keywords

    Diversity; employment; neighborhood effects;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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