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Ethnic diversity and well-being

Ethnic diversity and well-being
Ethnic diversity and well-being
This paper investigates how ethnic diversity, measured by immigrants’ nationalities, influences the well-being of the host country. Using panel data from Germany from 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German natives. Our finding is robust to alternative definitions of ethnic diversity and to the non-random selection of natives and immigrants into regions. The positive effect of ethnic diversity is stronger for immigrant groups that are culturally and economically closer to Germany. Consistent with this result, we document the existence of two mechanisms explaining the influence of ethnic diversity on well-being: productivity—as captured by immigrants’ skills and assimilation—and social capital—particularly in relation to the creation of a multicultural environment.
Ethnic diversity Subjective well-being Assimilation Multiculturality
0933-1433
265-306
Alpaslan, Akay
c501e5b9-c858-43d6-ac67-464a3500f0c7
Constant, Amelie
5539e34f-1f7f-4474-823a-9629ad83512c
Giulietti, Corrado
c662221c-fad3-4456-bfe3-78f8a5211158
Guzi, Martin
8c98bacb-d29a-45e2-aaf8-f78870127e35
Alpaslan, Akay
c501e5b9-c858-43d6-ac67-464a3500f0c7
Constant, Amelie
5539e34f-1f7f-4474-823a-9629ad83512c
Giulietti, Corrado
c662221c-fad3-4456-bfe3-78f8a5211158
Guzi, Martin
8c98bacb-d29a-45e2-aaf8-f78870127e35

Alpaslan, Akay, Constant, Amelie, Giulietti, Corrado and Guzi, Martin (2017) Ethnic diversity and well-being Journal of Population Economics, 30, (1), pp. 265-306. (doi:10.1007/s00148-016-0618-8).

Record type: Article

Abstract

This paper investigates how ethnic diversity, measured by immigrants’ nationalities, influences the well-being of the host country. Using panel data from Germany from 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German natives. Our finding is robust to alternative definitions of ethnic diversity and to the non-random selection of natives and immigrants into regions. The positive effect of ethnic diversity is stronger for immigrant groups that are culturally and economically closer to Germany. Consistent with this result, we document the existence of two mechanisms explaining the influence of ethnic diversity on well-being: productivity—as captured by immigrants’ skills and assimilation—and social capital—particularly in relation to the creation of a multicultural environment.

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Accepted/In Press date: 6 September 2016
e-pub ahead of print date: 19 September 2016
Published date: 1 January 2017
Keywords: Ethnic diversity Subjective well-being Assimilation Multiculturality
Organisations: Economics, Centre for Population Change

Identifiers

Local EPrints ID: 402620
URI: http://eprints.soton.ac.uk/id/eprint/402620
ISSN: 0933-1433
PURE UUID: cc5069d1-ee66-46b3-91dc-dc4329def011

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Date deposited: 11 Nov 2016 16:01
Last modified: 10 Jan 2018 05:09

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Contributors

Author: Akay Alpaslan
Author: Amelie Constant
Author: Martin Guzi

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