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Ethnic Diversity and Well-Being

Listed author(s):
  • Akay, Alpaslan

    ()

    (University of Gothenburg)

  • Constant, Amelie F.

    ()

    (Temple University)

  • Giulietti, Corrado

    ()

    (University of Southampton)

  • Guzi, Martin

    ()

    (Masaryk University)

This paper investigates how ethnic diversity, measured by the immigrants' countries of origin, influences the well-being of the host country. Using panel data from Germany for the period 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German citizens. To corroborate the robustness of our results, we estimate several alternative specifications and investigate possible causality issues, including non-random selection of natives and immigrants into regions. Finally, we explore productivity and social capital as potential mechanisms behind our finding.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 9726.

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Length: 42 pages
Date of creation: Feb 2016
Handle: RePEc:iza:izadps:dp9726
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