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The Deceptively Simple Economics of Workplace Diversity

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  • EVAN OSBORNE

Abstract

Legal, scholarly, and public discussion of work force diversity has proceeded largely without benefit of microeconomic theory. Existing analysis relies on incomplete information to explain why firms might have "unrepresentative" work forces. I build a model in which work force composition matters even given full information. My analysis both explains current labor-market trends and raises questions about the use by courts and government agencies of statistical evidence to test for employment discrimination.

Suggested Citation

  • Evan Osborne, 2000. "The Deceptively Simple Economics of Workplace Diversity," Journal of Labor Research, Transaction Publishers, vol. 21(3), pages 463-476, July.
    • Handle: RePEc:tra:jlabre:v:21:y:2000:i:3:p:463-476
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    Citations

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    Cited by:

    1. Linda Barrington & Kenneth R. Troske, 2001. "Workforce Diversity and Productivity: An Analysis of Employer-Employee Match Data," Economics Program Working Papers 01-02, The Conference Board, Economics Program.
    2. Pierpaolo Parrotta & Dario Pozzoli & Mariola Pytlikova, 2014. "The nexus between labor diversity and firm’s innovation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 303-364, April.
    3. Rebecca Riley & Hilary Metcalf & John Forth, 2013. "The business case for equal opportunities," Industrial Relations Journal, Wiley Blackwell, vol. 44(3), pages 216-239, May.
    4. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2014. "Labor diversity and firm productivity," European Economic Review, Elsevier, vol. 66(C), pages 144-179.
    5. Parrotta, Pierpaolo & Pozzoli, Dario & Sala, Davide, 2016. "Ethnic diversity and firms' export behavior," European Economic Review, Elsevier, vol. 89(C), pages 248-263.
    6. Boris Hirsch & Elke J. Jahn & Thomas Zwick, 2020. "Birds, Birds, Birds: Co‐Worker Similarity, Workplace Diversity and Job Switches," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 690-718, September.
    7. Parrotta, Pierpaolo & Pozzoli, Dario & Pytlikova, Mariola, 2010. "Does Labor Diversity Affect Firm Productivity?," Working Papers 10-12, University of Aarhus, Aarhus School of Business, Department of Economics.
    8. Boris Hirsch & Elke J. Jahn & Thomas Zwick, 2019. "Birds, Birds, Birds: Co-worker Similarity, Workplace Diversity, and Voluntary Turnover," Working Paper Series in Economics 387, University of Lüneburg, Institute of Economics.
    9. Rebecca Riley & Hilary Metcalf & John Forth, 2013. "The business case for equal opportunities," Industrial Relations Journal, Wiley Blackwell, vol. 44(3), pages 216-239, May.
    10. Helen McGuirk & Declan Jordan, 2011. "Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses," European Planning Studies, Taylor & Francis Journals, vol. 20(12), pages 1945-1960, June.

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