TY  - RPRT
        AU  - Parrotta, Pierpaolo
AU  - Pozzoli, Dario
AU  - Pytlikova, Mariola
        TI  - Does Labor Diversity Affect Firm Productivity?
        PY  - 2012/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6973
        UR  - https://www.iza.org/index.php/publications/dp6973
        AB  - Using a matched employer-employee data-set, we analyze how workforce diversity in terms of cultural background, education and demographic characteristics affects the productivity of firms in Denmark. Implementing a structural estimation of the firms' production function (Ackerberg et al. 2006), we find that labor diversity in education significantly enhances a firm's value added. Conversely, diversity in ethnicity and demographics induces negative effects on firm productivity. Therefore, the negative effects, which are derived from the communication and integration costs associated with a more culturally and demographically diverse workforce, seem to outweigh the positive effects of creativity and knowledge spillovers.
        KW  - communication barriers
KW  - total factor productivity
KW  - skill complementarity
KW  - labor diversity
        ER  -