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Multiculturalism and Growth: Skill-Specific Evidence from the Post-World War II Period

Author

Listed:
  • Frédéric Docquier

    (UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain)

  • Riccardo Turati

    (UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain)

  • Jérôme Valette

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Chrysovalantis Vasilakis

    (UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain)

Abstract

This paper empirically revisits the impact of multiculturalism (as proxied by indices of birthplace diversity and polarization among immigrants, or by epidemiological terms) on the macroeconomic performance of US states over the 1960-2010 period. We test for skill-specific effects of multiculturalism, controlling for standard growth regressors and a variety of fixed effects, and accounting for the age of entry and legal status of immigrants. To identify causation, we compare various instrumentation strategies used in the existing literature. We provide converging and robust evidence of a positive and significant effect of diversity among college-educated immigrants on GDP per capita. Overall, a 10% increase in high-skilled diversity raises GDP per capita by 6.2%. On the contrary, diversity among less educated immigrants has insignificant effects. Also, we find no evidence of a quadratic effect or a contamination by economic conditions in poor countries.

Suggested Citation

  • Frédéric Docquier & Riccardo Turati & Jérôme Valette & Chrysovalantis Vasilakis, 2017. "Multiculturalism and Growth: Skill-Specific Evidence from the Post-World War II Period," CERDI Working papers halshs-01425462, HAL.
  • Handle: RePEc:hal:cdiwps:halshs-01425462
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01425462
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Michel Beine & Silvia Peracchi & Skerdilajda Zanaj, 2021. "Genetic Diversity and Performance: Evidence from Fooball Data," CESifo Working Paper Series 9188, CESifo.

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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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