%0 Report
        %A Parrotta, Pierpaolo
%A Pozzoli, Dario
%A Pytlikova, Mariola
        %T Does Labor Diversity Affect Firm Productivity?
        %D 2012
        %8 2012 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 6973
        %U https://www.iza.org/publications/dp6973
        %X 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.
        %K communication barriers
%K total factor productivity
%K skill complementarity
%K labor diversity