Does Labour Diversity affect Firm Productivity?

Pierpaolo Parrotta, Dario Pozzoli, Mariola Pytlikova

Publikation: Working paper/Preprint Working paperForskning

Abstract

Using a matched employer-employee dataset, we analyze how workforce diversity in cultural background, education and demographic characteristics affects productivity of firms in Denmark. Implementing a structural estimation of the firms' production function (Ackerberg et al., 2006) we find that labor diversity in education significantly enhances a firm's value added. Conversely, diversity in ethnicity and demographics induces negative effects on firm productivity. Hence, the negative effects, coming from communication and integration costs connected to a more culturally and demographically diverse workforce, seem to outweigh the positive effects coming from creativity and knowledge spillovers.
OriginalsprogEngelsk
UdgivelsesstedLondon
UdgiverNorface Research Programme on Migration
Antal sider30
StatusUdgivet - 2011

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