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Cultural diversity and plant‐level productivity

Michaela Trax, Stephan Brunow and Jens Suedekum ()

No 2012029, Norface Discussion Paper Series from Norface Research Programme on Migration, Department of Economics, University College London

Abstract: Using comprehensive data for German establishments (1999-2008), we estimate plant-level production functions to analyze if “cultural diversity” affects total factor productivity. We distinguish diversity in the establishment’s workforce and in the aggregate regional labor force where the plant is located. We find that a larger share of foreign workers –either in the establishment or in the region –does not affect productivity. However, there are strong spillovers associated with the degree of cultural heterogeneity. The aggregate level is, quantitatively, at least as important as the workforce composition inside the establishment. Diversity thus seems to induce externalities beyond the boundaries of a single firm; it improves local business environments.

Keywords: Cultural Diversity; Plant-level Productivity and knowlege Spillovers. (search for similar items in EconPapers)
JEL-codes: R23 J21 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-eff and nep-geo
Date: 2012-09
References: View references in EconPapers View complete reference list from CitEc
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Related works:
Journal Article: Cultural diversity and plant-level productivity (2015) Downloads
Working Paper: Cultural diversity and plant-level productivity (2013) Downloads
Working Paper: Cultural diversity and plant-level productivity (2012) Downloads
Working Paper: Cultural Diversity and Plant?Level Productivity (2012) Downloads
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