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Birthplace Diversity and Economic Growth: Evidence from the US States in the Post-World War II Period

Author

Listed:
  • Frédéric DOCQUIER

    (Université Catholique de Louvain)

  • Riccardo TURATI

    (IRES - Université Catholique de Louvain)

  • Jérôme VALETTE

    (CERDI Université Clermont Auvergne - CNRS)

  • Chrysovalantis VASILAKIS

    (FERDI)

Abstract

This paper empirically revisits the impact of birthplace diversity on economic growth. We use panel data on US states over the 1960-2010 period. This rich data set allows us to better deal with endogeneity issues and to conduct a large set of robustness checks. Our results suggest that diversity among college-educated immigrants positively affects economic growth. We provide converging evidence pointing at the existence of skill complementarities between workers trained in different countries. These synergies result in better labor market outcomes for native workers and in higher productivity in the R&D sector. The gains from diversity are maximized when immigrants originate from economically or culturally distant countries (but not both), and when they acquired part of their secondary education abroad and their college education in the US. Overall, a 10% increase in high-skilled diversity raises GDP per capita by about 6%. On the contrary, low-skilled diversity has insignificant effects.

Suggested Citation

  • Frédéric DOCQUIER & Riccardo TURATI & Jérôme VALETTE & Chrysovalantis VASILAKIS, 2018. "Birthplace Diversity and Economic Growth: Evidence from the US States in the Post-World War II Period," Working Papers P222, FERDI.
  • Handle: RePEc:fdi:wpaper:4262
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    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.
    2. Dany Bahar & Hillel Rapoport & Riccardo Turati, 2019. "Does Birthplace Diversity Affect Economic Complexity? Cross-Country Evidence," CESifo Working Paper Series 7950, CESifo.
    3. Francesco Campo & Mariapia Mendola & Andrea Morrison & Gianmarco Ottaviano, "undated". "Immigrant Inventors and Diversity in the Age of Mass Migration," Development Working Papers 464, Centro Studi Luca d'Agliano, University of Milano.
    4. Scott L. Fulford & Ivan Petkov & Fabio Schiantarelli, 2020. "Does it matter where you came from? Ancestry composition and economic performance of US counties, 1850–2010," Journal of Economic Growth, Springer, vol. 25(3), pages 341-380, September.
    5. Michał Burzyński & Frédéric Docquier & Hillel Rapoport, 2018. "The Changing Structure of Immigration to the OECD: What Welfare Effects on Member Countries?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 66(3), pages 564-601, September.
    6. Beverelli, Cosimo & Orefice, Gianluca, 2019. "Migration deflection: The role of Preferential Trade Agreements," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    7. Riccardo Turati, 2020. "Network-based Connectedness and the Diffusion of Cultural Traits," LIDAM Discussion Papers IRES 2020012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    9. Ana Cuadros & Jordi Paniagua & Antonio Navas, 2019. "Moving ideas across borders: Migrant inventors, patents and FDI," Working Papers 1904, Department of Applied Economics II, Universidad de Valencia.
    10. Bargain, Olivier & Stephane, Victor & Valette, Jérôme, 2021. "Another Brick in the Wall. Immigration and Electoral Preferences: Direct Evidence from State Ballots," IZA Discussion Papers 14233, Institute of Labor Economics (IZA).
    11. Francesco Campo & Mariapia Mendola & Andrea Morrison & Gianmarco Ottaviano, "undated". "Immigrant Inventors and Diversity in the Age of Mass Migration," Development Working Papers 464, Centro Studi Luca d'Agliano, University of Milano.
    12. Sari Pekkala Kerr & William R. Kerr, 2021. "Whose Job Is It Anyway? Co-Ethnic Hiring in New U.S. Ventures," Working Papers 21-05, Center for Economic Studies, U.S. Census Bureau.
    13. Brunello, Giorgio & Lodigiani, Elisabetta & Rocco, Lorenzo, 2020. "Does low-skilled immigration increase profits? Evidence from Italian local labour markets," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    14. 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.
    15. Riccardo Turati, 2021. "Do you want to migrate to the United States? Migration intentions and Cultural Traits in Latin America," Working Papers wpdea2101, Department of Applied Economics at Universitat Autonoma of Barcelona.
    16. Ozgen, Ceren, 2021. "The Economics of Diversity: Innovation, Productivity, and the Labour Market," IZA Discussion Papers 14344, Institute of Labor Economics (IZA).
    17. 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.
    18. Mariani, Fabio & Mercier, Marion & Pensieroso, Luca, 2021. "Left-Handedness and Economic Development," IZA Discussion Papers 14237, Institute of Labor Economics (IZA).
    19. Silje Haus-Reve & Abigail Cooke, 2019. "Do regional social capital and trust matter for immigrant diversity and wages?," Papers in Evolutionary Economic Geography (PEEG) 1932, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2019.
    20. Adam Levai & Riccardo Turati, 2021. "The Impact of Immigration on Workers Protection," Working Papers wpdea2102, Department of Applied Economics at Universitat Autonoma of Barcelona.
    21. Brox, Enzo & Krieger, Tommy, 2019. "Birthplace diversity and team performance," ZEW Discussion Papers 19-020, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Immigration; Culture; Birthplace Diversity; growth;
    All these keywords.

    JEL classification:

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

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