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Diversity and Employment Prospects: Neighbors Matter!

Author

Listed:
  • Camille Hémet

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEPR - Center for Economic Policy Research)

  • Clément Malgouyres

    (Centre de recherche de la Banque de France - Banque de France)

Abstract

Using recent data from the French Labor Force Survey, this paper explores how diversity affects individuals' employment prospects at various geographic levels. Employment correlates positively with local labor market diversity, but negatively with neighborhood diversity. Using several approaches to deal with the endogeneity of local labor market diversity, we do not find any robust evidence of a causal impact of diversity on employment at this rather aggregate level, suggesting that immigrants actually tend to self-select into more economically dynamic areas. However, taking advantage of the very precise localization of the data in order to correct biases related to residential sorting, we confirm a negative effect of neighborhood diversity. We also show that diversity in terms of nationalities matters more than diversity based on parents' origins, giving insights on the underlying mechanisms.

Suggested Citation

  • Camille Hémet & Clément Malgouyres, 2018. "Diversity and Employment Prospects: Neighbors Matter!," PSE-Ecole d'économie de Paris (Postprint) halshs-01626756, HAL.
  • Handle: RePEc:hal:pseptp:halshs-01626756
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    Cited by:

    1. Chareyron, Sylvain & Chung, Amélie & Domingues, Patrick, 2021. "Ethnic diversity and educational success: Evidence from France," Research in Economics, Elsevier, vol. 75(2), pages 133-143.
    2. Alexander M. Danzer & Carsten Feuerbaum & Marc Piopiunik & Ludger Woessmann, 2022. "Growing up in ethnic enclaves: language proficiency and educational attainment of immigrant children," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1297-1344, July.
    3. Zenou, Yves & Biavaschi, Costanza & Giulietti, Corrado, 2021. "Social Networks and (Political) Assimilation in the Age of Mass Migration," CEPR Discussion Papers 16182, C.E.P.R. Discussion Papers.
    4. Matthieu Solignac & Maxime Tô, 2018. "Do Workers Make Good Neighbours? The Impact of Local Employment on Young Male and Female Entrants to the Labour Market," Annals of Economics and Statistics, GENES, issue 130, pages 167-198.
    5. Sylvain Chareyron & Patrick Domingues & Lucie Fotsa Lieno-Gaillardon, 2021. "Does Social Interaction Matter for Welfare Participation?," Annals of Economics and Statistics, GENES, issue 141, pages 49-70.
    6. Chareyron, Sylvain & L'Horty, Yannick & Mbaye, Souleymane & Petit, Pascale, 2023. "Reducing ethnic discrimination through formal warning: Evidence from two combined field experiments," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    7. ,, 2020. "Unemployment and Crime Victimization: a Local Approach," CEPR Discussion Papers 14947, C.E.P.R. Discussion Papers.
    8. Jones, Daniel B. & Zhan, Crystal, 2020. "Ethnic diversity and citizens’ support for local public good provision: Evidence from California parcel tax elections," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 108-130.

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    More about this item

    Keywords

    diversity; employment; neighborhood effects;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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