TY  - RPRT
        AU  - Trax, Michaela
AU  - Brunow, Stephan
AU  - Suedekum, Jens
        TI  - Cultural Diversity and Plant?Level Productivity
        PY  - 2012/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6845
        UR  - https://www.iza.org/publications/dp6845
        AB  - 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.
        KW  - cultural diversity
KW  - plant-level productivity
KW  - knowledge spillovers
        ER  -