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Cultural diversity and plant-level productivity

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  • Trax, Michaela
  • Brunow, Stephan
  • Suedekum, Jens

Abstract

Using comprehensive data for German establishments, we estimate plant-evel production functions to analyze if cultural diversity affects total factor productivity. We distinguish diversity in the establishment's workforce and in the aggregate labor force of the region where the plant is located. We find that a larger share of foreign workers . either in the establishment or in the region . does not affect productivity. However, there are spillovers associated with the degree of fractionalization of the group of foreigners into different nationalities. The aggregate level is, quantitatively, at least as important for productivity as the workforce composition inside the establishment. --

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Paper provided by Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) in its series DICE Discussion Papers with number 119.

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Date of creation: 2013
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Handle: RePEc:zbw:dicedp:119

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Keywords: cultural diversity; plant-level productivity; knowledge spillovers;

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Citations

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Cited by:
  1. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013022, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Mitaritonna, Cristina & Orefice, Gianluca & Peri, Giovanni, 2014. "Immigrants and Firms' Productivity: Evidence from France," IZA Discussion Papers 8063, Institute for the Study of Labor (IZA).
  3. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2011. "The Impact of Cultural Diversity on Innovation: Evidence from Dutch Firm-Level Data," IZA Discussion Papers 6000, Institute for the Study of Labor (IZA).
  4. Nathan, Max, 2013. "The Wider Economic Impacts of High-Skilled Migrants: A Survey of the Literature," IZA Discussion Papers 7653, Institute for the Study of Labor (IZA).
  5. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration, Springer, Springer, vol. 3(1), pages 1-20, December.
  6. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2013. "Birthplace Diversity and Economic Prosperity," CReAM Discussion Paper Series 1304, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  7. Uwe Blien & Linda Borrs & Jens Südekum & Katja Wolf, 2014. "Local Labour Markets and Cultural Diversity," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 27-34, 07.
  8. Neil Lee, 2013. "Cultural Diversity, Cities and Innovation: firm Effects or City Effects?," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0144, Spatial Economics Research Centre, LSE.
  9. Longhi, Simonetta, 2013. "Impact of cultural diversity on wages, evidence from panel data," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(5), pages 797-807.
  10. Stephan Brunow & Valentina Nafts, 2013. "What types of firms tend to be more innovative: A study on Germany," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013021, Norface Research Programme on Migration, Department of Economics, University College London.
  11. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0149, Spatial Economics Research Centre, LSE.
  12. Sara de la Rica & Albretch Glitz & Francesc Ortega, 2013. "Immigration in Europe: Trends, Policies and Empirical Evidence," Working Papers 2013-16, FEDEA.
  13. Ceren Ozgen & Thomas de Graff, 2013. "Sorting out the impact of cultural diversity on innovative firms. An empirical analysis of Dutch micro-data," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2013012, Norface Research Programme on Migration, Department of Economics, University College London.
  14. Ceren Ozgen, 2011. "The Impact of Cultural Diversity on Innovation: Evidence from Dutch Firm-Level Data," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2011013, Norface Research Programme on Migration, Department of Economics, University College London.
  15. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2013. "The impact of cultural diversity on firm innovation: evidence from Dutch micro-data," IZA Journal of Migration, Springer, Springer, vol. 2(1), pages 1-24, December.

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