@TechReport{iza:izadps:dp9726, author={Akay, Alpaslan and Constant, Amelie F. and Giulietti, Corrado and Guzi, Martin}, title={Ethnic Diversity and Well-Being}, year={2016}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={9726}, url={https://www.iza.org/publications/dp9726}, abstract={This paper investigates how ethnic diversity, measured by the immigrants' countries of origin, influences the well-being of the host country. Using panel data from Germany for the period 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German citizens. To corroborate the robustness of our results, we estimate several alternative specifications and investigate possible causality issues, including non-random selection of natives and immigrants into regions. Finally, we explore productivity and social capital as potential mechanisms behind our finding.}, keywords={assimilation;multiculturality;subjective well-being;ethnic diversity}, }