What Types of Diversity Benefit Workers? Empirical Evidence on the Effects of Co-Worker Dissimilarity on the Performance of Employees
AbstractThis paper explores the consequences of grouping workers into diverse divisions on the performance of employees using a dataset containing the detailed personnel records of a large U.S. firm from 1989-1994. In particular, I examine the effects of demographic dissimilarity among co-workers, namely differences in age, gender and race among employees who work together within divisions, and non-demographic dissimilarity, namely differences in education, work function, firm tenure, division tenure, performance and wages among employees within divisions. I find evidence that age dissimilarity, dissimilarity in firm tenure, and performance dissimilarity are associated with lower worker performance, while wage differences are associated with higher worker performance. My analysis also reveals that the effects of certain types of dissimilarities get smaller in magnitude the longer a worker is a part of a division. Finally, the paper provides evidence that the relationships between performance and the various measures of dissimilarity vary by occupational area and division size. JEL Categories: D2, J1, J2, J3, J8, L2, M5
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Bibliographic InfoPaper provided by University of Massachusetts Amherst, Department of Economics in its series UMASS Amherst Economics Working Papers with number 2011-11.
Date of creation: Jun 2011
Date of revision:
Work-Group Diversity; Communication Costs; Knowledge Spillovers; Specialization; Worker Performance;
Find related papers by JEL classification:
- D2 - Microeconomics - - Production and Organizations
- J1 - Labor and Demographic Economics - - Demographic Economics
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J8 - Labor and Demographic Economics - - Labor Standards
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
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- Garnero, Andrea & Rycx, Francois, 2013.
"The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits,"
IZA Discussion Papers
7350, Institute for the Study of Labor (IZA).
- Andrea Garnero & François Rycx, 2013. "The heterogeneous effects of workforce diversity on productivity, wages and profits," Working Papers CEB 13-015, ULB -- Universite Libre de Bruxelles.
- Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits," CEPREMAP Working Papers (Docweb) 1304, CEPREMAP.
- Andrea Garnero & François Rycx, 2013. "The heterogeneous effects of workforce diversity on productivity, wages and profits," DULBEA Working Papers 13-04, ULB -- Universite Libre de Bruxelles.
- Kato, Takao & Shu, Pian, 2011. "Competition, Group Identity, and Social Networks in the Workplace: Evidence from a Chinese Textile Firm," IZA Discussion Papers 6219, Institute for the Study of Labor (IZA).
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