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Birthplace diversity and productivity spill-overs in firms

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Abstract

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

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  • René Böheim & Thomas Horvath & Karin Mayr, 2014. "Birthplace diversity and productivity spill-overs in firms," Vienna Economics Papers 1403, University of Vienna, Department of Economics.
  • Handle: RePEc:vie:viennp:1403
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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