TY  - RPRT
        AU  - Parrotta, Pierpaolo
AU  - Pozzoli, Dario
AU  - Pytlikova, Mariola
        TI  - The Nexus between Labor Diversity and Firm's Innovation
        PY  - 2012/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6972
        UR  - https://www.iza.org/publications/dp6972
        AB  - 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.
        KW  - labor diversity
KW  - patenting activity
KW  - extensive and intensive margins
KW  - ethnic diversity
        ER  -