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Cultural Diversity and Local Labour Markets

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  • Jens Suedekum
  • Katja Wolf
  • Uwe Blien

Abstract

Suedekum J., Wolf K. and Blien U. Cultural diversity and local labour markets, Regional Studies . The diversity of nationalities of foreign workers in the German labour market has increased considerably over the period 1995-2006. This paper investigates the effects of this diversity for native employees at the local level. The higher is high-skilled foreign employment, the higher are local wages and employment levels for natives. These effects are reinforced the more diverse is the group of high-skilled foreigners. For low-skilled foreigners benefits from diversity are also found, but only conditional on the overall size of this group. These results suggest that cultural diversity benefits native workers by raising local productivity.

Suggested Citation

  • Jens Suedekum & Katja Wolf & Uwe Blien, 2014. "Cultural Diversity and Local Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 173-191, January.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:1:p:173-191
    DOI: 10.1080/00343404.2012.697142
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    3. Bonin, Holger, 2005. "Wage and Employment Effects of Immigration to Germany: Evidence from a Skill Group Approach," IZA Discussion Papers 1875, Institute of Labor Economics (IZA).
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    More about this item

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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