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Ethnic diversity and well-being

Alpaslan Akay (), Amelie Constant (), Corrado Giulietti () and Martin Guzi ()
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Alpaslan Akay: University of Gothenburg

Journal of Population Economics, 2017, vol. 30, issue 1, No 13, 265-306

Abstract: Abstract This paper investigates how ethnic diversity, measured by immigrants’ nationalities, influences the well-being of the host country. Using panel data from Germany from 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German natives. Our finding is robust to alternative definitions of ethnic diversity and to the non-random selection of natives and immigrants into regions. The positive effect of ethnic diversity is stronger for immigrant groups that are culturally and economically closer to Germany. Consistent with this result, we document the existence of two mechanisms explaining the influence of ethnic diversity on well-being: productivity—as captured by immigrants’ skills and assimilation—and social capital—particularly in relation to the creation of a multicultural environment.

Keywords: Ethnic diversity; Subjective well-being; Assimilation; Multiculturality (search for similar items in EconPapers)
JEL-codes: C90 D63 J61 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/s00148-016-0618-8

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