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Birthplace diversity and productivity spill-overs in firms

Listed author(s):
  • René Böheim
  • Thomas Horvath
  • Karin Mayr

We determine workforce composition and wages in firms in the presence of productivity spill-overs between co-workers. In equilibrium, workers' wages depend on the production struc- ture of firms, own group size, and aggregate workforce composition in the firm. We estimate the wage effects of workforce diversity and own group size by birthplace and the implied pro- duction structure in Austrian firms using a comprehensive matched employer-employee data set. In our data, we identify a positive effect of workforce diversity and a negative effect of own group size on wages, which suggest that workers of different birthplaces are complements in production on average.

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File URL: http://www.econ.jku.at/papers/2014/wp1409.pdf
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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2014-09.

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Length: 38 pages
Date of creation: Aug 2014
Handle: RePEc:jku:econwp:2014_09
Contact details of provider: Fax: +43 732-2468-8238
Web page: http://www.econ.jku.at/

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  6. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
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