Racial Diversity and Macroeconomic Productivity across US States and Cities
The United States is growing increasingly diverse, so it is important that economists understand the macroeconomic consequences of diversity within the US economy. International analyses often argue that heterogeneity reduces macroeconomic productivity by engendering corruption, political instability, and social turmoil. However, other studies claim that diversity improves creative decision making and augments productivity. This paper exploits differences in diversity across regions of the United States from 1980 to 2000 to determine whether racial heterogeneity creates macroeconomic 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.
|Date of creation:||Nov 2007|
|Contact details of provider:|| Postal: 13 Oak Drive, Hamilton, NY 13346-1389|
Phone: (315) 228-7533
Fax: (315) 228-7033
Web page: http://www.colgate.edu/academics/departments-and-programs/economics
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:cgt:wpaper:2007-01. 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: (Chad Sparber)
If references are entirely missing, you can add them using this form.