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The Nexus between Labor Diversity and Firm's Innovation

Pierpaolo Parrotta (), Dario Pozzoli () and Mariola Pytlikova ()

No 6972, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we investigate the nexus between firm labor diversity and innovation using a linked employer-employee data from Denmark. Specifically, exploiting information retrieved from this comprehensive database and implementing proper instrumental variable strategies, we are able to identify the contribution of workers' diversity in cultural background, education and demographic characteristics to valuable firm's innovation activity. The latter is measured by: (1) the firm's propensity to apply for a patent, (2) the number of patent applications (intensive margin) and (3) the firm's ability to patent in different technological areas (extensive margin). We find that ethnic diversity plays an important role in propelling firm's innovation outcomes.

Keywords: labor diversity; patenting activity; extensive and intensive margins; ethnic diversity (search for similar items in EconPapers)
JEL-codes: J15 J16 J24 J61 J82 O32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-dem, nep-ino, nep-ipr, nep-pr~, nep-knm, nep-lab and nep-ure
Date: 2012-10
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Published in: Journal of Population Economics, 2014, 27 (2), 303-364

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Related works:
Journal Article: The nexus between labor diversity and firm’s innovation (2014) Downloads
Working Paper: The Nexus between Labor Diversity and Firm Innovation (2014) Downloads
Working Paper: The Nexus between Labor Diversity and Firm's Innovation (2011) Downloads
Working Paper: The Nexus between Labor Diversity and Firm´s Innovation (2010) Downloads
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