Cultural diversity and plant-level productivity

Michaela Trax, Stephan Brunow and Jens Suedekum

Regional Science and Urban Economics, 2015, vol. 53, issue C, 85-96

Abstract: Using comprehensive data for German establishments, we estimate plant-level production functions to analyze if “cultural diversity” affects total factor productivity. We distinguish diversity in the establishment's workforce (the micro level) and in the aggregate labor force of the region where the plant is located (the macro level). We find that a larger share of foreign workers — either in the establishment or in the region — does not affect productivity. However, there are spillovers associated with the degree of fractionalization of the group of foreigners into different nationalities. Regional diversity is at least as important for productivity as micro-level diversity.

Keywords: Cultural diversity; Plant-level productivity; Knowledge spillovers (search for similar items in EconPapers)
JEL-codes: J21 J31 R23 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (85)

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Related works:
Working Paper: Cultural diversity and plant-level productivity (2013)
Working Paper: Cultural diversity and plant-level productivity (2012)
Working Paper: Cultural Diversity and Plant?Level Productivity (2012)
Working Paper: Cultural diversity and plant‐level productivity (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:53:y:2015:i:c:p:85-96

DOI: 10.1016/j.regsciurbeco.2015.05.004

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