Arbeitspapier
The Economic Value of Cultural Diversity: Evidence from US Cities
We use data on wages and rents in different U.S. cities to assess the amenity effects on production and consumption of cultural diversity as measured by diversity of countries of birth of city residents. We show that US-born citizens living in metropolitan areas where the share of foreign-born increased between 1970 and 1990 have experienced a significant average increase in their wage and in the rental price of their housing. Such finding is economically significant and robust to omitted variable bias and endogeneity bias. We then present a model in which cultural diversity may have both production and consumption amenity or disamenity effects. As people and firms are mobile across cities in the long run, the model implies that the joint results from the wage and rent regressions are consistent with a dominant production amenity effect of cultural diversity.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 1117
- Classification
-
Wirtschaft
- Subject
-
cultural diversity
productivity
local amenities
urban economics
- Event
-
Geistige Schöpfung
- (who)
-
Ottaviano, Gianmarco I.P.
Peri, Giovanni
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2004
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ottaviano, Gianmarco I.P.
- Peri, Giovanni
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2004
Other Objects (12)
The Economic Value of Cultural Diversity: Evidence from US Cities
Young People, Skills and Cities
Human capital externalities in US cities
Cities and Cultures
Identifying Human Capital Externalities: Theory with an Application to US Cities
Rethinking the area approach: Immigrants and the labor market in California, 1960-2005
International migrations: some comparisons and lessons for the European Union
The economic consequences of the proposed immigration reform
Immigration Accounting: U.S. States 1960-2006
Do immigrant workers depress the wages of native workers?
Local Human Capital Externalities: An Overlapping Generation Model and Some Evidence on Experience Premia
Knowledge Flows and Knowledge Externalities
The Economic Value of Cultural Diversity: Evidence from US Cities
Young People, Skills and Cities
Human capital externalities in US cities
Cities and Cultures
Identifying Human Capital Externalities: Theory with an Application to US Cities
Rethinking the area approach: Immigrants and the labor market in California, 1960-2005
International migrations: some comparisons and lessons for the European Union
The economic consequences of the proposed immigration reform
Immigration Accounting: U.S. States 1960-2006
Do immigrant workers depress the wages of native workers?
Local Human Capital Externalities: An Overlapping Generation Model and Some Evidence on Experience Premia
Knowledge Flows and Knowledge Externalities
The Economic Value of Cultural Diversity: Evidence from US Cities
Young People, Skills and Cities
Human capital externalities in US cities
Cities and Cultures
Identifying Human Capital Externalities: Theory with an Application to US Cities
Rethinking the area approach: Immigrants and the labor market in California, 1960-2005
International migrations: some comparisons and lessons for the European Union
The economic consequences of the proposed immigration reform
Immigration Accounting: U.S. States 1960-2006
Do immigrant workers depress the wages of native workers?
Local Human Capital Externalities: An Overlapping Generation Model and Some Evidence on Experience Premia