Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/67257 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 6972
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In this paper we investigate the nexus between firm labor diversity and innovation using a linked employer-employee data from Denmark. Specifically, exploiting information retrieved from this comprehensive database and implementing proper instrumental variable strategies, we are able to identify the contribution of workers' diversity in cultural background, education and demographic characteristics to valuable firm's innovation activity. The latter is measured by: (1) the firm's propensity to apply for a patent, (2) the number of patent applications (intensive margin) and (3) the firm's ability to patent in different technological areas (extensive margin). We find that ethnic diversity plays an important role in propelling firm's innovation outcomes.
Subjects: 
labor diversity
ethnic diversity
patenting activity
extensive and intensive margins
JEL: 
J15
J16
J24
J61
J82
O32
Document Type: 
Working Paper

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