The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits

Andrea Garnero and Francois Rycx

No 7350, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We estimate the impact of workforce diversity on productivity, wages and productivity-wage gaps (i.e. profits) using detailed Belgian linked employer-employee panel data. Findings, robust to a large set of covariates, specifications and econometric issues, show that educational (age) diversity is beneficial (harmful) for firm productivity and wages. The consequences of gender diversity are found to depend on the technological/knowledge environment of firms. While gender diversity generates significant gains in high-tech/ knowledge intensive sectors, the opposite result is obtained in more traditional industries. Overall, findings do not point to sizeable productivity-wage gaps except for age diversity.

Keywords: GMM; linked panel data; labour diversity; productivity; wages (search for similar items in EconPapers)
JEL-codes: D24 J24 J31 M12 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-04
New Economics Papers: this item is included in nep-eff, nep-eur, nep-hrm, nep-lab, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Industrial Relations: A Journal of Economy and Society, 2014, 53 (3), 430-477.

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Related works:
Journal Article: The Heterogeneous Effects of Workforce Diversity on Productivity, Wages, and Profits (2014)
Working Paper: The Heterogeneous Effects of Workforce Diversity on Productivity, Wages, and Profits (2014)
Working Paper: The Heterogeneous Effects of Workforce Diversity on Productivity, Wages, and Profits (2014)
Working Paper: The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits (2013)
Working Paper: The heterogeneous effects of workforce diversity on productivity, wages and profits (2013)
Working Paper: The heterogeneous effects of workforce diversity on productivity, wages and profits (2013)
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