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Ethnic diversity and well-being

Author

Listed:
  • Alpaslan Akay

    (University of Gothenburg)

  • Amelie Constant

    (Princeton University)

  • Corrado Giulietti

    (University of Southampton)

  • Martin Guzi

    (Masaryk University)

Abstract

This paper investigates how ethnic diversity, measured by immigrants’ nationalities, influences the well-being of the host country. Using panel data from Germany from 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German natives. Our finding is robust to alternative definitions of ethnic diversity and to the non-random selection of natives and immigrants into regions. The positive effect of ethnic diversity is stronger for immigrant groups that are culturally and economically closer to Germany. Consistent with this result, we document the existence of two mechanisms explaining the influence of ethnic diversity on well-being: productivity—as captured by immigrants’ skills and assimilation—and social capital—particularly in relation to the creation of a multicultural environment.

Suggested Citation

  • Alpaslan Akay & Amelie Constant & Corrado Giulietti & Martin Guzi, 2017. "Ethnic diversity and well-being," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 265-306, January.
  • Handle: RePEc:spr:jopoec:v:30:y:2017:i:1:d:10.1007_s00148-016-0618-8
    DOI: 10.1007/s00148-016-0618-8
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    More about this item

    Keywords

    Ethnic diversity; Subjective well-being; Assimilation; Multiculturality;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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