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Cultural diversity and plant-level productivity

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  • Trax, Michaela
  • Brunow, Stephan
  • Suedekum, Jens

Abstract

Using comprehensive data for German establishments, we estimate plant-evel production functions to analyze if cultural diversity affects total factor productivity. We distinguish diversity in the establishment's workforce and in the aggregate labor force of the region 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 spillovers associated with the degree of fractionalization of the group of foreigners into different nationalities. The aggregate level is, quantitatively, at least as important for productivity as the workforce composition inside the establishment.

Suggested Citation

  • Trax, Michaela & Brunow, Stephan & Suedekum, Jens, 2013. "Cultural diversity and plant-level productivity," DICE Discussion Papers 119, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    • Handle: RePEc:zbw:dicedp:119
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    More about this item

    Keywords

    cultural diversity; plant-level productivity; knowledge spillovers;
    All these keywords.

    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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