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Ethnic Diversity and Well-Being

Author

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  • Akay, Alpaslan

    (University of Gothenburg)

  • Constant, Amelie F.

    (Temple University)

  • Giulietti, Corrado

    (University of Southampton)

  • Guzi, Martin

    (Masaryk University)

Abstract

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.

Suggested Citation

  • Akay, Alpaslan & Constant, Amelie F. & Giulietti, Corrado & Guzi, Martin, 2016. "Ethnic Diversity and Well-Being," IZA Discussion Papers 9726, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9726
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    More about this item

    Keywords

    subjective well-being; multiculturality; assimilation; ethnic diversity;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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