Cultural diversity and plant-level productivity

Arbeitspapier

Using comprehensive data for German establishments (1999-2008), we estimate plant-level production functions to analyze if cultural diversity affects total factor productivity. We distinguish diversity in the establishment's workforce and in the aggregate regional labor force 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 strong spillovers associated with the degree of cultural heterogeneity. The aggregate level is, quantitatively, at least as important as the workforce composition inside the establishment. Diversity thus seems to induce externalities beyond the boundaries of a single firm; it improves local business environments.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6845

Classification and Topics

• Classification: Wirtschaft ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics ; Labor Force and Employment, Size, and Structure ; Wage Level and Structure; Wage Differentials
• Subject: cultural diversity ; plant-level productivity ; knowledge spillovers ; Produktivität ; Unternehmen ; Multikulturelle Gesellschaft ; Wissenstransfer ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Trax, Michaela ; Brunow, Stephan ; Südekum, Jens
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/67248
• Last update: 10.03.2025, 11:42 AM CET