Effects of cultural diversity on individual establishments
AbstractInternational immigration affects the degree of cultural diversity present in a labour force. This paper focuses on the consequences of immigration with respect to the level of cultural diversity by estimating employment functions for individual establishments. The theory behind the empirical analyses is based on a 'turned around' New Economic Geography model. The data basis used is a linked employer -- employee data set generated by a fusion of the IAB Establishment Panel with the Employment Statistics of Germany, which provides very detailed information about individual workers and establishments. In the empirical analyses it is shown that employment is lower when the degree of diversity is higher, regarding the revenue of an individual establishment as given. From this result it can be derived under the conditions of monopolistic competition (implying elastic product demand) that the establishment is able to occupy a relatively large part of the market. Finally this implies relatively high labour demand.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p187.
Date of creation: Sep 2011
Date of revision:
Contact details of provider:
Postal: Augasse 2-6, 1090 Vienna, Austria
Web page: http://www.ersa.org
Other versions of this item:
- Stephan Brunow & Uwe Blien, 2011. "Effects of cultural diversity on individual establishments," Norface Discussion Paper Series 2011006, Norface Research Programme on Migration, Department of Economics, University College London.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stephan Brunow & Peter Nijkamp, 2012.
"The impact of a culturally diverse workforce on firms’ market size: An empirical investigation on Germany,"
Norface Discussion Paper Series
2012022, Norface Research Programme on Migration, Department of Economics, University College London.
- Stephan Brunow & Peter Nijkamp, 2012. "The Impact of a Culturally Diverse Workforce on Firms' Market Size: An Empirical Investigation on Germany," Tinbergen Institute Discussion Papers 12-082/3, Tinbergen Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.