Birthplace diversity and economic growth

This paper empirically investigates the impact of birthplace diversity on economic growth. We use panel data on US states over the 1960-2010 period. This rich data set allows us to better deal with endogeneity issues and to conduct a large set of robustness checks. Our results suggest that diversity...

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Detalles Bibliográficos
Autores: Docquier, Frederic, Turati, Riccardo|||0000-0002-7636-6995, Valette, Jerome, Vasilakis, Chrysovalantis
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:301588
Acceso en línea:https://ddd.uab.cat/record/301588
https://dx.doi.org/urn:doi:10.1093/jeg/lbz016
Access Level:acceso abierto
Palabra clave:Immigration
Birthplace diversity
Culture
Growth
SDG 8 - Decent Work and Economic Growth
SDG 10 - Reduced Inequalities
Descripción
Sumario:This paper empirically investigates the impact of birthplace diversity on economic growth. We use panel data on US states over the 1960-2010 period. This rich data set allows us to better deal with endogeneity issues and to conduct a large set of robustness checks. Our results suggest that diversity among college-educated immigrants positively affects economic growth. We provide converging evidence pointing at the existence of skill complementarities between workers trained in different countries. These synergies result in better labor market outcomes for native workers and in higher productivity in the R&D sector. The gains from diversity are maximized when immigrants originate from economically or culturally distant countries (but not both), and when they acquired part of their secondary education abroad and their college education in the USA. Overall, a 10% increase in high-skilled diversity raises GDP per capita by about 6%. On the contrary, low-skilled diversity has insignificant effects.