Work

The elusive effects of workplace diversity on innovation

Year: 2015

Type: article

Abstract: We investigate econometrically whether cultural diversity at the workplace boosts innovation. Our longitudinal linked employer-employee data combines two innovation surveys, with Dutch administrative, tax and regional data. We analyse the determinants of a firm's product and process innovations with respect to the firm's internal resources, employee composition and regional agglomeration externalities. We reconfirm the findings of several other recent studies showing a positive partial correlation between innovation and cultural diversity in pooled cross-sectional data; in some cases even when accounting for reverse causation. However, no statistically significant traces of benefit for innovation from cultural diversity remain after introducing firm fixed effects.

Source: Papers of the Regional Science Association

DOI: 10.1111/pirs.12176

Authors: Ceren Ozgen, Peter Nijkamp, Jacques Poot

Institutions: IZA - Institute of Labor Economics, Vrije Universiteit Amsterdam, European University Institute, Adam Mickiewicz University in Poznań, University of Waikato

Language: English

Topic: Culture, Economy, and Development Studies

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,740