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Impact of Cultural Diversity on Wages and Job Satisfaction in England

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  • Simonetta Longhi

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

Abstract

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.

Suggested Citation

  • Simonetta Longhi, 2011. "Impact of Cultural Diversity on Wages and Job Satisfaction in England," Norface Discussion Paper Series 2011010, Norface Research Programme on Migration, Department of Economics, University College London.
    • Handle: RePEc:nor:wpaper:2011010
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    References listed on IDEAS

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    Cited by:

    1. Neil Lee, 2013. "Cultural Diversity, Cities and Innovation: firm Effects or City Effects?," SERC Discussion Papers 0144, Centre for Economic Performance, LSE.
    2. Sovanjeet Mishra & Pavan Kumar, 2017. "Exploring The Nexus Between Psychological Contract And Turnover Intention: Conceptual Framework," Romanian Economic Business Review, Romanian-American University, vol. 12(1), pages 68-81, March.
    3. Dirk Dohse & Robert Gold, 2013. "Measuring Cultural Diversity at a Regional Level. WWWforEurope Working Paper No. 10," WIFO Studies, WIFO, number 46857, April.
    4. Thomas Kemeny, 2013. "Immigrant Diversity and Economic Development in Cities: A Critical Review," SERC Discussion Papers 0149, Centre for Economic Performance, LSE.
    5. Francisco De Lima Cavalcanti & Raul Da Mota Silveira Neto, 2016. "Creative Class, Human Capital And Urban Dynamism: Empirical Evidence For The Brazilian Cities," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 160, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. 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.

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    More about this item

    Keywords

    Cultural Diversity; Wages; Job Satisfaction.;
    All these keywords.

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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