IDEAS home Printed from https://ideas.repec.org/p/nor/wpaper/2011006.html
   My bibliography  Save this paper

Effects of cultural diversity on individual establishments

Author

Listed:
  • Stephan Brunow

    () (Institute for Employment Research)

  • Uwe Blien

    () (Institute for Employment Research)

Abstract

International immigration affects the degree of cultural diversity present in a labour force. This paper focuses on the consequences of immigration with respect to the level of cultural diversity by estimating employment functions for individual establishments. The theory behind the empirical analyses is based on a "turned around" New Economic Geography model. The data basis used is a linked employer - employee data set generated by a fusion of the IAB Establishment Panel with the Employment Statistics of Germany, which provides very detailed information about individual workers and establishments. In the empirical analyses it is shown that employment is lower when the degree of diversity is higher, regarding the revenue of an individual establishment as given. From this result it can be derived under the conditions of monopolistic competition (implying elastic product demand) that the establishment is able to occupy a relatively large part of the market. Finally this implies relatively high labour demand.

Suggested Citation

  • Stephan Brunow & Uwe Blien, 2011. "Effects of cultural diversity on individual establishments," Norface Discussion Paper Series 2011006, Norface Research Programme on Migration, Department of Economics, University College London.
  • Handle: RePEc:nor:wpaper:2011006
    as

    Download full text from publisher

    File URL: http://www.norface-migration.org/publ_uploads/NDP_06_11.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stephan Brunow & Peter Nijkamp, 2012. "The Impact of a Culturally Diverse Workforce on Firms' Market Size: An Empirical Investigation on Germany," Tinbergen Institute Discussion Papers 12-082/3, Tinbergen Institute.
    2. Nathan, Max, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," LSE Research Online Documents on Economics 57370, London School of Economics and Political Science, LSE Library.
    3. Brunow, Stephan & Blien, Uwe, 2015. "Agglomeration effects on labor productivity: An assessment with microdata," REGION, European Regional Science Association, vol. 2, pages 33-53.
    4. Stephan Brunow & Luise Grünwald, 2014. "Exports, agglomeration and workforce diversity: An empirical assessment of German establishments," Norface Discussion Paper Series 2014008, Norface Research Programme on Migration, Department of Economics, University College London.
    5. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    6. Dirk Dohse & Robert Gold, 2013. "Measuring Cultural Diversity at a Regional Level," WWWforEurope Working Papers series 10, WWWforEurope.
    7. Stephan Brunow & Bastian Stockinger, 2013. "Establishments' and Regions' Cultural Diversity as a Source of Innovation: Evidence from Germany," Norface Discussion Paper Series 2013022, Norface Research Programme on Migration, Department of Economics, University College London.
    8. Dirk Dohse & Robert Gold, 2014. "Cultural Diversity and Economic Policy," WWWforEurope Working Papers series 64, WWWforEurope.
    9. Peter Nijkamp & Jacques Poot, 2015. "Cultural Diversity - A Matter of Measurement," CReAM Discussion Paper Series 1502, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    10. Ceren Ozgen & Thomas de Graff, 2013. "Sorting out the impact of cultural diversity on innovative firms. An empirical analysis of Dutch micro-data," Norface Discussion Paper Series 2013012, Norface Research Programme on Migration, Department of Economics, University College London.
    11. Stephan Brunow & Hanna Brenzel, 2012. "The effect of a culturally diverse labour supply on regional income in the EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 461-485, November.

    More about this item

    Keywords

    effects of immigration; cultural diversity; employment; productivity; firm level;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nor:wpaper:2011006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norface Migration Administrator) or (Thomas Cornelissen). General contact details of provider: http://edirc.repec.org/data/cmucluk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.