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Impact of cultural diversity on wages and job satisfaction in England


  • Longhi, Simonetta


This paper combines individual data from the British Household Panel Survey and yearly population estimates for England to analyse the impact of cultural diversity on individual wages and on different aspects of job satisfaction. Do people living in more diverse areas have higher wages and job satisfaction after controlling for other observable characteristics? The results show that cultural diversity is positively associated with wages, but only when cross-section data are used. Panel data estimations show that there is no impact of diversity. Using instrumental variables to account for endogeneity also show that diversity has no impact.

Suggested Citation

  • Longhi, Simonetta, 2011. "Impact of cultural diversity on wages and job satisfaction in England," ISER Working Paper Series 2011-19, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2011-19

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    References listed on IDEAS

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    Cited by:

    1. Kemeny, Thomas, 2013. "Immigrant diversity and economic development in cities: a critical review," LSE Research Online Documents on Economics 58458, London School of Economics and Political Science, LSE Library.
    2. Francisco De Lima Cavalcanti & Raul Da Mota Silveira Neto, 2016. "Creative Class, Human Capital And Urban Dynamism: Empirical Evidence For The Brazilian Cities," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42ndd Brazilian Economics Meeting] 160, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. repec:rau:journl:v:12:y:2017:i:1:p:68-81 is not listed on IDEAS
    4. Lee, Neil, 2013. "Cultural diversity, cities and innovation: firm effects or city effects?," LSE Research Online Documents on Economics 57874, London School of Economics and Political Science, LSE Library.

    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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