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The regional impact of cultural diversity on wages: evidence from Australia

Elias, Amanuel and Paradies, Yin 2016, The regional impact of cultural diversity on wages: evidence from Australia, IZA journal of migration, vol. 5, Article number : 12, pp. 1-24, doi: 10.1186/s40176-016-0060-4.

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Title The regional impact of cultural diversity on wages: evidence from Australia
Author(s) Elias, Amanuel
Paradies, YinORCID iD for Paradies, Yin orcid.org/0000-0001-9927-7074
Journal name IZA journal of migration
Volume number 5
Season Article number : 12
Start page 1
End page 24
Total pages 24
Publisher SpringerOpen
Place of publication Berlin, Germany
Publication date 2016-06-28
ISSN 2193-9039
Keyword(s) Cultural diversity
Wages
Instrumental variable
Shift-share
Australia
Summary This paper investigates the impact of cultural diversity on labour market outcomes, particularly on wages across regions using a large longitudinal data. We apply an instrumental variable approach and account for individual and time fixed effects. Our findings indicate that the current level of cultural diversity positively affected current regional weekly wages; however, the positive effect holds only partially when the diversity is lagged. The results appear to be robust in all estimations controlling for heterogeneity factors and accounting for the self-selection of individuals into places with better economic opportunities. Our findings concerning the effect of lagging on the effect of diversity may explain the variation in the literature where some studies report that cultural diversity increases wages across time while others do not.
Language eng
DOI 10.1186/s40176-016-0060-4
Field of Research 140211 Labour Economics
Socio Economic Objective 910208 Micro Labour Market Issues
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, The Authors
Free to Read? Yes
Use Rights Creative Commons Attribution licence
Persistent URL http://hdl.handle.net/10536/DRO/DU:30084651

Document type: Journal Article
Collections: Alfred Deakin Research Institute
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Created: Mon, 04 Jul 2016, 15:00:40 EST

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.