IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v53y2013i1p8-36.html
   My bibliography  Save this article

Economic Impacts Of Cultural Diversity In The Netherlands: Productivity, Utility, And Sorting

Author

Listed:
  • Jessie Bakens
  • Peter Mulder
  • Peter Nijkamp

Abstract

This discussion paper resulted in an article in the Journal of Regional Science (2013). Volume 53, issue 1, pages 8-36. This paper identifies the role of cultural diversity in explaining spatial disparities in wages and housing prices across Dutch cities, using unique individual panel data of home owners. We distinguish between the effects of interactions-based productivity, consumption amenities and sorting of heterogeneous home owners while controlling for interactions between the labor and housing market. We find that an increase in the cultural diversity of the population positively impacts equilibrium wages and housing prices, particularly in the largest and most densely populated cities. This result is largely driven by spatial sorting of individuals in both the labor and housing market. After controlling for home owner heterogeneity we find that increasing cultural diversity no longer impacts local labor markets and negatively impacts local housing markets. The latter result is likely to be driven by a negative causal effect of increased cultural diversity on neighb orhood quality that outweighs a positive effect of increased cultural diversity in consumption goods.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jessie Bakens & Peter Mulder & Peter Nijkamp, 2013. "Economic Impacts Of Cultural Diversity In The Netherlands: Productivity, Utility, And Sorting," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 8-36, February.
  • Handle: RePEc:bla:jregsc:v:53:y:2013:i:1:p:8-36 DOI: jors.12012
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jors.12012
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Trade and unemployment: What do the data say?," European Economic Review, Elsevier, vol. 55(6), pages 741-758, August.
    2. Libertad Gonzalez & Francesc Ortega, 2013. "Immigration And Housing Booms: Evidence From Spain," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 37-59, February.
    3. Gianmarco I. P. Ottaviano & Giovanni Peri & Greg C. Wright, 2016. "Immigration, Offshoring, and American Jobs," World Scientific Book Chapters,in: The Economics of International Migration, chapter 4, pages 117-151 World Scientific Publishing Co. Pte. Ltd..
    4. Jessie Bakens & Peter Mulder & Peter Nijkamp, 2013. "Economic Impacts Of Cultural Diversity In The Netherlands: Productivity, Utility, And Sorting," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 8-36, February.
    5. Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity," Journal of Economic Theory, Elsevier, vol. 146(1), pages 39-73, January.
    6. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
    7. William W. Olney, 2013. "Immigration And Firm Expansion," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 142-157, February.
    8. Saiz, Albert, 2007. "Immigration and housing rents in American cities," Journal of Urban Economics, Elsevier, vol. 61(2), pages 345-371, March.
    9. John I. Carruthers & Natasha T. Duncan & Brigitte S. Waldorf, 2013. "Public And Subsidized Housing As A Platform For Becoming A United States Citizen," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 60-90, February.
    10. Elhanan Helpman & Oleg Itskhoki, 2010. "Labour Market Rigidities, Trade and Unemployment," Review of Economic Studies, Oxford University Press, vol. 77(3), pages 1100-1137.
    11. W. Mark Brown & Darren M. Scott, 2012. "Human Capital Location Choice: Accounting For Amenities And Thick Labor Markets," Journal of Regional Science, Wiley Blackwell, vol. 52(5), pages 787-808, December.
    12. Magnus Lofstrom & Laura Hill & Joseph Hayes, 2013. "Wage And Mobility Effects Of Legalization: Evidence From The New Immigrant Survey," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 171-197, February.
    13. Giovanni Peri & Chad Sparber, 2016. "Task Specialization, Immigration, and Wages," World Scientific Book Chapters,in: The Economics of International Migration, chapter 3, pages 81-115 World Scientific Publishing Co. Pte. Ltd..
    14. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    15. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    16. repec:wsi:wschap:9789814719902_0007 is not listed on IDEAS
    17. Yves Zenou, 2011. "Rural–Urban Migration And Unemployment: Theory And Policy Implications," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 65-82, February.
    18. Meagan E. Cahill & Rachel S. Franklin, 2013. "The Minority Homeownership Gap, Home Foreclosure, And Nativity: Evidence From Miami-Dade County," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 91-117, February.
    19. Jaison R. Abel & Ishita Dey & Todd M. Gabe, 2012. "Productivity And The Density Of Human Capital," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 562-586, October.
    20. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    21. Gianmarco I.P. Ottaviano & Giovanni Peri, 2016. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters,in: The Economics of International Migration, chapter 7, pages 229-264 World Scientific Publishing Co. Pte. Ltd..
    22. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    23. J. David Brown & Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2013. "Does Employing Undocumented Workers Give Firms A Competitive Advantage?," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 158-170, February.
    24. Ivan Etzo, 2011. "The Determinants Of The Recent Interregional Migration Flows In Italy: A Panel Data Analysis," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 948-966, December.
    25. Kristian Behrens & Yasuhiro Sato, 2011. "Migration, Skill Formation, And The Wage Structure," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 5-30, February.
    26. Gebremeskel H. Gebremariam & Tesfa G. Gebremedhin & Peter V. Schaeffer, 2011. "Employment, Income, And Migration In Appalachia: A Spatial Simultaneous Equations Approach," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 102-120, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kemeny, Thomas & Cooke, Abigail, 2015. "Spillovers from immigrant diversity in cities," LSE Research Online Documents on Economics 64616, London School of Economics and Political Science, LSE Library.
    2. Kemeny, Thomas, 2013. "Immigrant diversity and economic development in cities: a critical review," LSE Research Online Documents on Economics 58458, London School of Economics and Political Science, LSE Library.
    3. 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).
    4. Abigail Cooke & Thomas Kemeny, 2016. "Urban Immigrant Diversity and Inclusive Institutions," Working Papers 16-07, Center for Economic Studies, U.S. Census Bureau.
    5. Zhiling Wang & Thomas De Graaff & Peter Nijkamp, 2016. "Cultural Diversity and Cultural Distance as Choice Determinants of Migration Destination," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(2), pages 176-200, June.
    6. 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;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.
    7. repec:eee:respol:v:46:y:2017:i:6:p:1175-1185 is not listed on IDEAS
    8. Simonetta Longhi, 2014. "Cultural diversity and subjective well-being," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-19, December.
    9. José Garcia Montalvo & Marta Reynal-Querol, 2017. "Ethnic diversity and growth: revisiting the evidence," Economics Working Papers 1585, Department of Economics and Business, Universitat Pompeu Fabra.
    10. Bayar, Mehmet, 2016. "The impact of cultural diversity on the German housing market," Ruhr Economic Papers 662, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Lee, Neil, 2013. "Cultural diversity, cities and innovation: firm effects or city effects?," LSE Research Online Documents on Economics 57874, London School of Economics and Political Science, LSE Library.
    12. 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.
    13. Abigail Cooke & Thomas Kemeny, 2016. "Immigrant Diversity and Complex Problem Solving," Working Papers 16-04, Center for Economic Studies, U.S. Census Bureau.
    14. Accetturo, Antonio & Manaresi, Francesco & Mocetti, Sauro & Olivieri, Elisabetta, 2014. "Don't stand so close to me: The urban impact of immigration," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 45-56.
    15. Gianmarco Ottaviano & Giovanni Peri, 2013. "New Frontiers Of Immigration Research: Cities And Firms," Journal of Regional Science, Wiley Blackwell, vol. 53(1), pages 1-7, February.
    16. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2014. "The choice of migration destinations: cultural diversity versus cultural distance," ERSA conference papers ersa14p1147, European Regional Science Association.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:53:y:2013:i:1:p:8-36. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.