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Publication Details

26 Aug 19

Birthplace diversity and economic growth: Evidence from the US states in the Post-World War II Period.

Authors: DOCQUIER Frédéric, TURATI Riccardo, VALETTE Jérôme, VASILAKIS Chrysovalantis.

Online First: 04/08/2019

DOI: http://doi.org/10.1093/jeg/lbz016

Abstract:

This paper empirically revisits 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 US. Overall, a 10% increase in high-skilled diversity raises GDP per capita by about 6%. On the contrary, low-skilled diversity has insignificant effects.

Reference: DOCQUIER Frédéric, TURATI Riccardo, VALETTE Jérôme, VASILAKIS Chrysovalantis. Birthplace diversity and economic growth: Evidence from the US states in the Post-World War II Period. Journal of Economic Geography, 2019.

Keywords:
immigration,
culture,
diversity,
growth

Project: The Economic Effects of International Migration and Skill Selection

Linked publications
DJAJIC Slobodan, DOCQUIER Frédéric, MICHAEL Michael S.
Journal of Demographic Economics, 2019, vol. 85, n°4, pp. 271-303.
DOCQUIER Frédéric, TANSEL Aysit, TURATI Riccardo.
International Migration Review, 2019.
BURZYNSKI Michal , GOLA Pawel
LISER, 2019, Working Papers n°2019-10, 44 p.
DOCQUIER Frédéric, IFTIKHAR Zainab.
Journal of International Economics, 2019, vol. 120, pp. 109-125.