Understanding the Regional Drivers of Productivity Benefits from Immigrant Diversity

Authors: Silje Haus-Reve*, Center for Innovation Reseach, UiS Business School University of Stavanger
Topics: Regional Geography, Qualitative Methods
Keywords: Regional institutions, immigrants, diversity and productivity
Session Type: Paper
Day: 4/3/2019
Start / End Time: 12:40 PM / 2:20 PM
Room: Diplomat Room, Omni, West
Presentation File: No File Uploaded

Recent studies suggests that greater immigrant diversity in regions and workplaces makes workers productive. Regional institutions are found to be important for this mechanism as they in principal regulate transaction cost within
the region. Seeking to better understand of this relationship this paper test
the hypothesis that the benefits from immigrant diversity will be higher in re-
gions with high level of social bridging while the opposite will be the case in
regions with high level of social bonding. Using longitudinal matched employer-
employee data from Norway, this paper provides new evidence on the relation-
ship between workers productivity, immigration-spawned diversity and regional
institutions. By triangulate across several time variate measures that differ-
ently capture the inclusiveness of regional institutions, we find that regional
institutions matter for enhance beneficial effects of diversity, in the context of
Norway. In particular, we found that the enhance benefits of regional diversity
are higher in regions with higher level of social bridging, while we find the op-
posite when we look at reigons’ with higher level of social bonding.

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