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Impact of Cultural Diversity on Wages and Job Satisfaction in England

  • Simonetta Longhi

    ()

    (Institute for Social and Economic Research, University of Essex and IZA)

This paper combines individual data from the British Household Panel Survey and yearly population estimates for England to analyse the impact of cultural diversity on individual wages and on different aspects of job satisfaction. Do people living in more diverse areas have higher wages and job satisfaction after controlling for other observable characteristics? The results show that cultural diversity is positively associated with wages, but only when cross-section data are used. Panel data estimations show that there is no impact of diversity. Using instrumental variables to account for endogeneity also show that diversity has no impact.

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Paper provided by Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2011010.

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Date of creation: Jul 2011
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Handle: RePEc:nor:wpaper:2011010
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