IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Cultural diversity and plant‐level productivity

  • Michaela Trax

    ()

    (Mercator School of Management, University of Duisburg-Essen)

  • Stephan Brunow

    ()

    (Institute of Employment Research (IAB))

  • Jens Suedekum

    ()

    (Mercator School of Management, University of Duisburg-Essen)

Using comprehensive data for German establishments (1999-2008), we estimate plant-level production functions to analyze if “cultural diversity” affects total factor productivity. We distinguish diversity in the establishment’s workforce and in the aggregate regional labor force where the plant is located. We find that a larger share of foreign workers –either in the establishment or in the region –does not affect productivity. However, there are strong spillovers associated with the degree of cultural heterogeneity. The aggregate level is, quantitatively, at least as important as the workforce composition inside the establishment. Diversity thus seems to induce externalities beyond the boundaries of a single firm; it improves local business environments.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.norface-migration.org/publ_uploads/NDP_29_12.pdf
Download Restriction: no

Paper provided by Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2012029.

as
in new window

Length:
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:nor:wpaper:2012029
Contact details of provider: Postal:
Drayton House, 30 Gordon Street, London WC1H 0AX

Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  3. Chad Sparber, 2009. "Racial Diversity and Aggregate Productivity in U.S. Industries: 1980–2000," Southern Economic Journal, Southern Economic Association, vol. 75(3), pages 829–856, January.
  4. Audretsch, David B & Dohse, Dirk & Niebuhr, Annekatrin, 2008. "Cultural Diversity and Entrepreneurship: A Regional Analysis for Germany," CEPR Discussion Papers 6945, C.E.P.R. Discussion Papers.
  5. Ceren Ozgen, 2011. "The Impact of Cultural Diversity on Innovation: Evidence from Dutch Firm-Level Data," Norface Discussion Paper Series 2011013, Norface Research Programme on Migration, Department of Economics, University College London.
  6. Neil Lee, 2015. "Migrant and ethnic diversity, cities and innovation: Firm effects or city effects?," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 769-796.
  7. Marcus BERLIANT & FUJITA Masahisa, 2011. "Culture and Diversity in Knowledge Creation," Discussion papers 11046, Research Institute of Economy, Trade and Industry (RIETI).
  8. Lazear, Edward P, 1999. "Globalisation and the Market for Team-Mates," Economic Journal, Royal Economic Society, vol. 109(454), pages C15-40, March.
  9. Ottaviano, Gianmarco & Peri, Giovanni, 2004. "Cities and Cultures," CEPR Discussion Papers 4438, C.E.P.R. Discussion Papers.
  10. Barton H. Hamilton & Jack A. Nickerson & Hideo Owan, 2003. "Team Incentives and Worker Heterogeneity: An Empirical Analysis of the Impact of Teams on Productivity and Participation," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 465-497, June.
  11. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
  12. Ed Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," NBER Working Papers 7790, National Bureau of Economic Research, Inc.
  13. David Card, 2005. "Is the New Immigration Really so Bad?," Economic Journal, Royal Economic Society, vol. 115(507), pages F300-F323, November.
  14. BOSSERT, Walter & D’AMBROSIO, Conchita & LA FERRARA, Eliana, 2008. "A Generalized Index of Fractionalization," Cahiers de recherche 01-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  15. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  16. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
  17. Giovanni Peri & Francisco Requena-Silvente, 2010. "The trade creation effect of immigrants: evidence from the remarkable case of Spain," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1433-1459, November.
  18. Sparber, Chad, 2007. "Racial Diversity and Macroeconomic Productivity across US States and Cities," Working Papers 2007-01, Department of Economics, Colgate University.
  19. David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
  20. Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan & Suedekum, Jens, 2012. "Why Are Educated and Risk-Loving Persons More Mobile Across Regions?," IZA Discussion Papers 6860, Institute for the Study of Labor (IZA).
  21. René Böheim & Thomas Horvath & Karin Mayr, 2012. "Birthplace Diversity of the Workforce and Productivity Spill-overs in Firms," WIFO Working Papers 438, WIFO.
  22. L H Kahane & N Longley & R Simmons, 2009. "The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League," Working Papers 599378, Lancaster University Management School, Economics Department.
  23. Joachim Wagner, 2005. "Exports and Productivity: A survey of the evidence from firm level data," Working Paper Series in Economics 4, University of Lüneburg, Institute of Economics.
  24. Edward L. Glaeser & Giacomo A. M. Ponzetto & Kristina Tobio, 2010. "Cities, skills, and regional change," Economics Working Papers 1255, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2011.
  25. Klette, Tor Jakob & Griliches, Zvi, 1996. "The Inconsistency of Common Scale Estimators When Output Prices Are Unobserved and Endogenous," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(4), pages 343-61, July-Aug..
  26. Niebuhr, Annekatrin, 2006. "Migration and innovation: Does cultural diversity matter for regional R&D activity?," HWWI Research Papers 3-1, Hamburg Institute of International Economics (HWWI).
  27. Gerdes, Christer, 2010. "Using "Shares" vs. "Log of Shares" in Fixed-Effect Estimations," IZA Discussion Papers 5171, Institute for the Study of Labor (IZA).
  28. Francesco D'Amuri & Giovanni Peri, 2012. "Immigration, jobs and employment protection: evidence from Europe before and during the Great Recession," Temi di discussione (Economic working papers) 886, Bank of Italy, Economic Research and International Relations Area.
  29. Giovanni Peri & Chad Sparber, 2008. "Task Specialisation, Immigration and Wages," Development Working Papers 252, Centro Studi Luca d'Agliano, University of Milano.
  30. Max Nathan, 2011. "The economics of super-diversity: findings from British cities, 2001-2006," LSE Research Online Documents on Economics 33578, London School of Economics and Political Science, LSE Library.
  31. Sander Hoogendoorn & Mirjam van Praag, 2012. "Ethnic Diversity and Team Performance: A Field Experiment," Tinbergen Institute Discussion Papers 12-068/3, Tinbergen Institute, revised 01 May 2014.
  32. George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers 92-2, Center for Economic Studies, U.S. Census Bureau.
  33. Hethey, Tanja & Schmieder, Johannes F., 2010. "Using worker flows in the analysis of establishment turnover : evidence from German administrative data," FDZ Methodenreport 201006_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  34. Gianmarco I.P. Ottaviano & Giovanni Peri, 2004. "The Economic Value of Cultural Diversity: Evidence from US Cities," CESifo Working Paper Series 1117, CESifo Group Munich.
  35. Stephan Brunow & Georg Hirte, 2009. "The age pattern of human capital and regional productivity: A spatial econometric study on german regions," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 799-823, November.
  36. Johannes Van Biesebroeck, 2004. "Robustness of Productivity Estimates," NBER Working Papers 10303, National Bureau of Economic Research, Inc.
  37. Francesco D'Amuri & Giovanni Peri, 2010. "Immigration and Occupations in Europe," CReAM Discussion Paper Series 1026, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  38. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
  39. Carmine Ornaghi, 2006. "Assessing the effects of measurement errors on the estimation of production functions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 879-891.
  40. Masahisa Fujita & Marcus Berliant, 2004. "Knowledge Creation as a Square Dance on the Hilbert Cube," Econometric Society 2004 North American Summer Meetings 204, Econometric Society.
  41. Ortega, Francesc & Peri, Giovanni, 2014. "Openness and income: The roles of trade and migration," Journal of International Economics, Elsevier, vol. 92(2), pages 231-251.
  42. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
  43. Conyon, Martin J, et al, 2002. "The Productivity and Wage Effects of Foreign Acquisition in the United Kingdom," Journal of Industrial Economics, Wiley Blackwell, vol. 50(1), pages 85-102, March.
  44. Wooldridge, Jeffrey M., 2009. "On estimating firm-level production functions using proxy variables to control for unobservables," Economics Letters, Elsevier, vol. 104(3), pages 112-114, September.
  45. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01304131, HAL.
  46. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
  47. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2011. "Does Labor Diversity affect Firm Productivity?," Norface Discussion Paper Series 2011022, Norface Research Programme on Migration, Department of Economics, University College London.
  48. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  49. Suedekum, Jens & Wolf, Katja & Blien, Uwe, 2009. "Cultural Diversity and Local Labour Markets," IZA Discussion Papers 4619, Institute for the Study of Labor (IZA).
  50. David Roodman, 2007. "A Note on the Theme of Too Many Instruments," Working Papers 125, Center for Global Development.
  51. Wacziarg, Romain & Spolaore, Enrico, 2006. "The Diffusion of Development," Research Papers 1898r1, Stanford University, Graduate School of Business.
  52. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
  53. Gnanaraj Chellaraj & Keith E. Maskus & Aaditya Mattoo, 2008. "The Contribution of International Graduate Students to US Innovation," Review of International Economics, Wiley Blackwell, vol. 16(3), pages 444-462, 08.
  54. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
  55. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
  56. Ilke Van Beveren, 2012. "Total Factor Productivity Estimation: A Practical Review," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 98-128, 02.
  57. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
  58. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
  59. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October.
  60. Zwick, Thomas, 2004. "Employee participation and productivity," Labour Economics, Elsevier, vol. 11(6), pages 715-740, December.
  61. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
  62. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2011. "The Impact of Cultural Diversity on Innovation: Evidence from Dutch Firm-Level Data," IZA Discussion Papers 6000, Institute for the Study of Labor (IZA).
  63. Max Nathan, 2011. "The Economics of Super-Diversity: Findings from British Cities, 2001-2006," SERC Discussion Papers 0068, Spatial Economics Research Centre, LSE.
  64. Sara Fisher Ellison & Wallace P. Mullin, 2014. "Diversity, Social Goods Provision, and Performance in the Firm," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(2), pages 465-481, 06.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nor:wpaper:2012029. 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)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.