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Cultural diversity and entrepreneurship in England and Wales

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  • Andres Rodríguez-Pose
  • Daniel Hardy

Abstract

British regions are becoming increasingly culturally diverse, with migration as the main driver. Does this diversity benefit local economies? This research examines the impact of cultural diversity on the entrepreneurial performance of UK regions. We focus on two largely overlooked factors, the measurement of diversity, and the skills composition of diverse populations. First, more that demonstrating the importance of cultural diversity for entrepreneurship, we show that the type of cultural diversity measured is a decisive factor. Second, the skill composition of diverse populations is also key. Diversity amongst the ranks of the highly skilled exerts the strongest impact upon start-up intensities. The empirical investigation employs spatial regression techniques and carriers out several robustness checks, including instrumental variables specifications, to corroborate our findings.

Suggested Citation

  • Andres Rodríguez-Pose & Daniel Hardy, 2014. "Cultural diversity and entrepreneurship in England and Wales," Papers in Evolutionary Economic Geography (PEEG) 1423, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2014.
  • Handle: RePEc:egu:wpaper:1423
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    References listed on IDEAS

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    1. repec:wiw:wiwreg:region_5_1_203 is not listed on IDEAS
    2. Brunow, Stephan & Birkeneder, Antonia & Rodriguez-Pose, Andrés, 2017. "Creative and science oriented employees and firm innovation : a key for smarter cities?," IAB Discussion Paper 201724, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

    More about this item

    Keywords

    Entrepreneurship; cultural diversity; high-skilled migration; knowledge spillovers;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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