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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

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Listed:
  • Leo Kahane

    (Providence College)

  • Neil Longley

    (University of Massachusetts, Amherst)

  • Robert Simmons

    (Lancaster University Management School)

Abstract

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.

Suggested Citation

  • Leo Kahane & Neil Longley & Robert Simmons, 2013. "The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 302-314, March.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:1:p:302-314
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    References listed on IDEAS

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    1. 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.
    2. 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..
    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 379-392, July.
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    6. Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(1), pages 47-71, August.
    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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    Cited by:

    1. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    2. Frédéric Docquier & Riccardo Turati & Jérôme Valette & Chrysovalantis Vasilakis, 2016. "Multiculturalism and Growth: Skill-Specific Evidence from the Post-World War II Period," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2016028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Rey Dang & Hocine Houanti & Frédéric Teulon, 2016. "Diversité culturelle nationale et performance d'équipe : le cas de la NBA," Post-Print halshs-01860064, HAL.
    4. Ottaviano, Gianmarco I.P. & Peri, Giovanni & Wright, Greg C., 2018. "Immigration, trade and productivity in services: Evidence from U.K. firms," Journal of International Economics, Elsevier, vol. 112(C), pages 88-108.
    5. Bernd Frick & Anica Rose, 2017. "Over the top: Team composition and performance in Himalayan expeditions," Working Papers Dissertations 24, Paderborn University, Faculty of Business Administration and Economics.
    6. Papps, Kerry L. & Bryson, Alex & Gomez, Rafael, 2011. "Heterogeneous worker ability and team-based production: Evidence from major league baseball, 1920-2009," Labour Economics, Elsevier, vol. 18(3), pages 310-319, June.
    7. René Böheim & Thomas Horvath & Karin Mayr, 2014. "Birthplace diversity and productivity spill-overs in firms," NRN working papers 2014-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    8. Berger, Allen N. & Kick, Thomas & Schaeck, Klaus, 2014. "Executive board composition and bank risk taking," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 48-65.
    9. Eiji Yamamura, 2016. "Comment on “A Business Analysis of Asian Baseball Leagues”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 115-116, January.
    10. 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.
    11. Hoogendoorn, Sander M. & van Praag, Mirjam C., 2012. "Ethnic Diversity and Team Performance: A Field Experiment," IZA Discussion Papers 6731, Institute for the Study of Labor (IZA).
    12. Gianluca Orefice & Gianluca Santoni, 2018. "Exporting creative and cultural products: Birthplace diversity matters!," The World Economy, Wiley Blackwell, vol. 41(7), pages 1867-1887, July.
    13. Craig A. Depken & Johnny Ducking & Peter A. Groothuis, 2017. "Career duration in the NHL: pushing and pulling on Europeans?," Applied Economics, Taylor & Francis Journals, vol. 49(59), pages 5923-5934, December.
    14. repec:eee:eecrev:v:102:y:2018:i:c:p:19-38 is not listed on IDEAS
    15. James Richard Hill & Peter A. Groothuis, 2016. "Is There a Wage Premium or Wage Discrimination For Foreign-Born Players in the NBA?," Working Papers 16-11, Department of Economics, Appalachian State University.
    16. Dennis Coates & Sara Azmoudeh Fard, 2011. "Returns to handedness in professional hockey," Working Papers 1121, International Association of Sports Economists;North American Association of Sports Economists.
    17. repec:bla:indres:v:56:y:2017:i:4:p:555-604 is not listed on IDEAS
    18. Swarnodeep Homroy & Kwok Tong Soo, 2014. "The impact of diversity on group and individual performance," Working Papers 65528509, Lancaster University Management School, Economics Department.
    19. Rosendahl Huber, Laura & Sloof, Randolph & van Praag, Mirjam C., 2014. "Jacks-of-All-Trades? The Effect of Balanced Skills on Team Performance," IZA Discussion Papers 8237, Institute for the Study of Labor (IZA).
    20. Ottaviano, Gianmarco I. P., 2014. "Immigration, diversity and the labour market outcomes of native workers: some recent developments," LSE Research Online Documents on Economics 60444, London School of Economics and Political Science, LSE Library.
    21. Colin Green & Swarnodeep Homroy, 2015. "Female directors, key committees, and firm performance," Working Papers 95922258, Lancaster University Management School, Economics Department.
    22. repec:bla:ecinqu:v:55:y:2017:i:2:p:1091-1103 is not listed on IDEAS
    23. repec:bla:coecpo:v:36:y:2018:i:1:p:192-199 is not listed on IDEAS
    24. Peter A. Groothuis & James Richard Hill, 2015. "Exit Discrimination in the NBA. Is there a Bias against Foreigners?," Working Papers 15-10, Department of Economics, Appalachian State University, revised 2015.

    More about this item

    Keywords

    workplace diversity; heterogeneity; cultural diversity; language diversity; National Hockey League;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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