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The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits

  • Garnero, Andrea
  • Kampelmann, Stephan
  • Rycx, François

We estimate the impact of workforce diversity on productivity, wages and productivity-wage gaps (i.e. profits) using detailed Belgian linked employer-employee panel data. Findings show that educational (age) diversity is beneficial (harmful) for firm productivity and wages. While gender diversity is found to generate significant gains in high-tech/knowledge intensive sectors, the opposite result is obtained in more traditional industries. Estimates neither vary substantially with firm size nor point to sizeable productivity-wage gaps except for age diversity.

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Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Docweb) with number 1304.

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Length: 51 pages
Date of creation: Sep 2013
Handle: RePEc:cpm:docweb:1304
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  1. Judith K. Hellerstein & David Neumark, 2004. "Production Function and Wage Equation Estimation with Heterogeneous Labor: Evidence from a New Matched Employer-Employee Data Set," NBER Working Papers 10325, National Bureau of Economic Research, Inc.
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  26. repec:iso:wpaper:0158 is not listed on IDEAS
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