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The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League

  • Leo Kahane

    (Providence College)

  • Neil Longley

    (University of Massachusetts, Amherst)

  • Robert Simmons

    (Lancaster University Management School)

This paper uses data from the National Hockey League (NHL) to consider the potential gains to firms from employing culturally diverse work teams. It finds that the presence of foreign workers does increase firm-level performance: NHL teams that employed a higher proportion of European players performed better. However, the results also indicate that teams perform better when their European players come from the same country rather than being spread across many European countries. When teams have players from a wide array of European countries, integration costs associated with language and cultural differences may start to override any gains from diversity. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00221
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Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 95 (2013)
Issue (Month): 1 (March)
Pages: 302-314

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Handle: RePEc:tpr:restat:v:95:y:2013:i:1:p:302-314
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  1. Dawson, Peter & Dobson, Stephen & Gerrard, Bill, 2000. "Estimating Coaching Efficiency in Professional Team Sports: Evidence from English Association Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 399-421, September.
  2. Ottaviano, Gianmarco & Peri, Giovanni, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CEPR Discussion Papers 4233, C.E.P.R. Discussion Papers.
  3. Zak, Thomas A & Huang, Cliff J & Siegfried, John J, 1979. "Production Efficiency: The Case of Professional Basketball," The Journal of Business, University of Chicago Press, vol. 52(3), pages 379-92, July.
  4. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer, vol. 27(1), pages 47-71, 08.
  5. repec:ebl:ecbull:v:1:y:2003:i:2:p:1-10 is not listed on IDEAS
  6. Stefan Szymanski, 2000. "A Market Test for Discrimination in the English Professional Soccer Leagues," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 590-603, June.
  7. Frederick Wiseman & Sangit Chatterjee, 2003. "Team payroll and team performance in major league baseball: 1985-2002," Economics Bulletin, AccessEcon, vol. 1(2), pages 1-10.
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