Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/117969
Authors: 
Ottaviano, Gianmarco I.P.
Peri, Giovanni
Year of Publication: 
2004
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 92.2004
Abstract: 
We investigate the existence of wage premium due to cultural diversity across US cities. Using census data from 1970 to 1990, we find that at the urban level richer diversity is systematically associated with higher average nominal wages for white US-born males. We measure cultural diversity in a city using the variety of languages spoken by city-residents. While the positive correlation between wages and diversity survives a battery of robustness checks, it seems to be larger once foreign cultures have been assimilated. Finally, instrumental variable estimation hints at causation going from diversity to wages. Comparing real and nominal wages across cities, we interpret these results as evidence that diversity enhances productivity.
Subjects: 
Cultural diversity
Productivity
Wages
Metropolitan areas
JEL: 
O4
R0
F1
Document Type: 
Working Paper

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