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Racial Diversity and Macroeconomic Productivity across US States and Cities


  • Chad Sparber


Sparber C. Racial diversity and macroeconomic productivity across US states and cities, Regional Studies. Racial diversity in the USA continues to rise. Past analyses have argued that diversity can have both positive and negative consequences. The overall macroeconomic effects of diversity within the USA require further examination. This paper exploits variation across US regions from 1980 to 2000 to determine whether racial heterogeneity creates gains or losses for states and cities. Fixed-effects analysis indicates that diversity enhances the productivity of cities. Evidence at the state level is more ambiguous, as significant results only appear in random-effects specifications. [image omitted] Sparber C. La diversite ethnique et la productivite macroeconomique a travers les etats et les grandes villes aux E-U, Regional Studies. Aux Etats-Unis, la diversite ethnique est toujours a la hausse. Des etudes anterieures ont cherche a affirmer que les consequences de la diversite ethnique peuvent s'averer a la fois positives et negatives. L'effet global macroeconomique de la diversite aux Etats-Unis necessite un examen plus approfondi. Cet article analyse la variation a travers les regions des Etats-Unis entre 1980 et l'an 2000 afin de determiner si, oui ou non, l'heterogeneite ethnique a des retombees positives ou negatives sur les etats et les grandes villes. Une analyse par effets fixes laisse voir que la diversite augmente la productivite des grandes villes. Les preuves qui proviennent des etats sont plus ambigues, parce que d'importants resultats ne sont evidents qu'a partir des specifications des effets aleatoires. Diversite ethnique Productivite macroeconomique Sparber C. Ethnische Vielfalt und makrookonomische Produktivitat in Bundesstaaten und Stadten der USA, Regional Studies. In den USA nimmt die ethnische Vielfalt weiter zu. In den Analysen der Vergangenheit wurde argumentiert, dass sich eine Vielfalt sowohl positiv als auch negativ auswirken kann. Die generellen makrookonomischen Auswirkungen der Vielfalt innerhalb der USA bedurfen einer genaueren Untersuchung. In diesem Beitrag werden die Schwankungen innerhalb der Regionen der USA im Zeitraum von 1980 bis 2000 untersucht, um festzustellen, ob eine ethnische Heterogenitat fur die Bundesstaaten und Stadte Gewinne oder Verluste erzeugt. Eine Festeffekt-Analyse weist darauf hin, dass sich durch Vielfalt die Produktivitat der Stadte erhoht. Die Belege auf der Ebene der Bundesstaaten fallen weniger eindeutig aus, da signifikante Ergebnisse nur in den Spezifikationen willkurlicher Effekte auftreten. Ethnische Vielfalt Makrookonomische Produktivitat Sparber C. Diversidad racial y productividad macroeconomica en estados y ciudades de EE.UU., Regional Studies. La diversidad racial en los Estados Unidos sigue creciendo. En analisis previos se ha postulado que la diversidad puede tener consecuencias tanto positivas como negativas. Es necesario examinar mejor los efectos macroeconomicos generales de la diversidad en los Estados Unidos. En este articulo analizo la variacion entre las regiones estadounidenses de 1980 a 2000 para determinar si la heterogeneidad racial crea ganancias o perdidas a los estados y las ciudades. Los analisis de efectos fijos indican que la diversidad aumenta la productividad de las ciudades. La evidencia a nivel estatal es mas ambigua porque los resultados significativos solo aparecen en las especificaciones de efectos aleatorios. Diversidad racial Productividad macroeconomica

Suggested Citation

  • Chad Sparber, 2010. "Racial Diversity and Macroeconomic Productivity across US States and Cities," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 71-85.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:1:p:71-85
    DOI: 10.1080/00343400802360436

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    References listed on IDEAS

    1. Timothy F. Harris & Yannnis M. Ioannides, 2000. "Productivity and Metropolitan Density," Discussion Papers Series, Department of Economics, Tufts University 0016, Department of Economics, Tufts University.
    2. Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies," Introductory Chapters,in: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Princeton University Press.
    3. Chad Sparber, 2009. "Racial Diversity and Aggregate Productivity in U.S. Industries: 1980–2000," Southern Economic Journal, Southern Economic Association, vol. 75(3), pages 829-856, January.
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    Cited by:

    1. Gianluca Orefice, 2010. "Skilled Migration and Economic Performances: Evidence from OECD Countries," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(IV), pages 781-820, December.
    2. Ager, Philipp & Brückner, Markus, 2013. "Cultural diversity and economic growth: Evidence from the US during the age of mass migration," European Economic Review, Elsevier, vol. 64(C), pages 76-97.
    3. Chad Sparber, 2009. "Racial Diversity and Aggregate Productivity in U.S. Industries: 1980–2000," Southern Economic Journal, Southern Economic Association, vol. 75(3), pages 829-856, January.
    4. Ratna, Nazmun N. & Quentin Grafton, R. & Kompas, Tom, 2009. "Is diversity bad for economic growth?: Evidence from state-level data in the US," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 859-870, December.
    5. Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2015. "Cultural diversity and plant-level productivity," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 85-96.
    6. repec:eee:respol:v:46:y:2017:i:6:p:1175-1185 is not listed on IDEAS
    7. Nathan, Max, 2011. "The long term impacts of migration in British cities: diversity, wages, employment and prices," LSE Research Online Documents on Economics 33577, London School of Economics and Political Science, LSE Library.
    8. Philipp Kolo, 2016. "A dissimilarity-adjusted index of ethnic diversity: Measurement and implications for findings on conflict, growth and trade," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 195, Courant Research Centre PEG.
    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. repec:wfo:wstudy:46857 is not listed on IDEAS
    11. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2010. "Does Labor Diversity Affect Firm Productivity?," Working Papers 10-12, University of Aarhus, Aarhus School of Business, Department of Economics.
    12. 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.
    13. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
    14. Stephan Brunow & Hanna Brenzel, 2012. "The effect of a culturally diverse labour supply on regional income in the EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 461-485, November.
    15. Dirk Dohse & Robert Gold, 2013. "Measuring Cultural Diversity at a Regional Level," WWWforEurope Working Papers series 10, WWWforEurope.
    16. repec:urb:journl:v:8:y:2017:p:1-24 is not listed on IDEAS
    17. repec:gam:jscscx:v:7:y:2018:i:8:p:123-:d:160237 is not listed on IDEAS

    More about this item


    Racial diversity; Macroeconomic productivity;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada


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