IDEAS home Printed from https://ideas.repec.org/p/cdi/wpaper/1838.html
   My bibliography  Save this paper

Multiculturalism and Growth: Skill-Specific Evidence from the Post-World War II Period

Author

Listed:
  • Frédéric DOCQUIER
  • Riccardo TURATI
  • Jérome VALETTE

    ()

  • Chrysovalantis VASILAKIS

Abstract

This paper empirically revisits the impact of multiculturalism (as proxied by indices of birthplace diversity and polarization among immigrants, or by epidemiological terms) on the macroeconomic performance of US states over the 1960-2010 period. We test for skill-specific effects of multiculturalism, controlling for standard growth regressors and a variety of fixed effects, and accounting for the age of entry and legal status of immigrants. To identify causation, we compare various instrumentation strategies used in the existing literature. We provide converging and robust evidence of a positive and significant effect of diversity among college-educated immigrants on GDP per capita. Overall, a 10% increase in high-skilled diversity raises GDP per capita by 6.2%. On the contrary, diversity among less educated immigrants has insignificant effects. Also, we find no evidence of a quadratic effect or a contamination by economic conditions in poor countries.

Suggested Citation

  • Frédéric DOCQUIER & Riccardo TURATI & Jérome VALETTE & Chrysovalantis VASILAKIS, 2016. "Multiculturalism and Growth: Skill-Specific Evidence from the Post-World War II Period," Working Papers 201624, CERDI.
  • Handle: RePEc:cdi:wpaper:1838
    as

    Download full text from publisher

    File URL: http://publi.cerdi.org/ed/2016/2016.24.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Elisabetta Lodigiani & Sara Salomone, 2012. "Migration-induced Transfers of Norms. The Case of Female Political Empowerment," DEGIT Conference Papers c017_058, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Ceren Ozgen & Cornelius Peters & Annekatrin Niebuhr & Peter Nijkamp & Jacques Poot, 2014. "Does Cultural Diversity of Migrant Employees Affect Innovation?," International Migration Review, Wiley Blackwell, vol. 48, pages 377-416, September.
    3. José G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
    4. Michel Beine & Frédéric Docquier & Maurice Schiff, 2013. "International migration, transfer of norms and home country fertility," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1406-1430, November.
    5. Louis Putterman & David N. Weil, 2010. "Post-1500 Population Flows and The Long-Run Determinants of Economic Growth and Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1627-1682.
    6. 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.
    7. Artuc, Erhan & Docquier, Frédéric & Özden, Çaglar & Parsons, Christopher, 2015. "A Global Assessment of Human Capital Mobility: The Role of Non-OECD Destinations," World Development, Elsevier, vol. 65(C), pages 6-26.
    8. George J. Borjas, 2016. "The Labor Supply of Undocumented Immigrants," NBER Working Papers 22102, National Bureau of Economic Research, Inc.
    9. Enrico Spolaore & Romain Wacziarg, 2015. "Ancestry, Language and Culture," NBER Working Papers 21242, National Bureau of Economic Research, Inc.
    10. 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..
    11. Quamrul Ashraf & Oded Galor, 2008. "Human Genetic Diversity and Comparative Economic Development," 2008 Meeting Papers 617, Society for Economic Dynamics.
    12. Borjas, George J, 2016. "The Labor Supply of Undocumented Immigrants," Working Paper Series 16-012, Harvard University, John F. Kennedy School of Government.
    13. Montalvo, Jose G. & Reynal-Querol, Marta, 2003. "Religious polarization and economic development," Economics Letters, Elsevier, vol. 80(2), pages 201-210, August.
    14. Caglar Ozden & Christopher R. Parsons & Maurice Schiff & Terrie L. Walmsley, 2011. "Where on Earth is Everybody? The Evolution of Global Bilateral Migration 1960-2000," World Bank Economic Review, World Bank Group, vol. 25(1), pages 12-56, May.
    15. Antonio Spilimbergo, 2009. "Democracy and Foreign Education," American Economic Review, American Economic Association, vol. 99(1), pages 528-543, March.
    16. Bertoli, Simone & Marchetta, Francesca, 2015. "Bringing It All Back Home – Return Migration and Fertility Choices," World Development, Elsevier, vol. 65(C), pages 27-40.
    17. René Böheim & Thomas Horvath & Karin Mayr, 2012. "Birthplace Diversity of the Workforce and Productivity Spill-overs in Firms," WIFO Working Papers 438, WIFO.
    18. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    19. Quamrul Ashraf & Oded Galor & Marc Klemp, 2014. "The Out of Africa Hypothesis of Comparative Development Reflected by Nighttime Light Intensity," Working Papers 2014-4, Brown University, Department of Economics.
    20. 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.
    21. Enrico Spolaore & Romain Wacziarg, 2009. "The Diffusion of Development," The Quarterly Journal of Economics, Oxford University Press, vol. 124(2), pages 469-529.
    22. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    23. 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.
    24. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    25. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
    26. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    27. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
    28. Scott Fulford & Ivan Petkov & Fabio Schiantarelli, 2015. "Does It Matter Where You Came From? Ancestry Composition and Economic Performance of U.S. Counties, 1850-2010," Boston College Working Papers in Economics 875, Boston College Department of Economics, revised 02 Feb 2017.
    29. George J. Borjas, 2015. "Immigration and Globalization: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 53(4), pages 961-974, December.
    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. Frédéric Docquier & Aysit Tansel & Riccardo Turati, 2017. "Do Emigrants Self-Select Along Cultural Traits? Evidence from the MENA Countries," CESifo Working Paper Series 6777, CESifo Group Munich.
    2. Michal Burzynski & Frédéric Docquier & Hillel Rapoport, 2018. "The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?," Working Papers 2018-09, CEPII research center.
    3. Michal Burzynski & Frédéric Docquier & Hillel Rapoport, 2018. "The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?," CESifo Working Paper Series 6992, CESifo Group Munich.
    4. Docquier, Frédéric & Tansel, Aysit & Turati, Riccardo, 2017. "Do emigrants self-select along cultural traits? Evidence from the MENA countries," MPRA Paper 82778, University Library of Munich, Germany.

    More about this item

    Keywords

    Birthplace diversity; Growth.;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cdi:wpaper:1838. 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: (Vincent Mazenod). General contact details of provider: http://edirc.repec.org/data/ceauvfr.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.