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http://hdl.handle.net/10419/67288
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| Title: | | Does labor diversity affect firm productivity?  |
| Authors: | | Parrotta, Pierpaolo Pozzoli, Dario Pytlikova, Mariola |
| Issue Date: | | 2012 |
| Series/Report no.: | | Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 6973 |
| Abstract: | | Using a matched employer-employee data-set, we analyze how workforce diversity in terms of cultural background, education and demographic characteristics affects the 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. Therefore, the negative effects, which are derived from the communication and integration costs associated with a more culturally and demographically diverse workforce, seem to outweigh the positive effects of creativity and knowledge spillovers. |
| Subjects: | | labor diversity skill complementarity communication barriers total factor productivity |
| JEL: | | J15 J16 J24 J61 J81 L20 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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