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Impact of cultural diversity on wages, evidence from panel data

Longhi, Simonetta (2013) 'Impact of cultural diversity on wages, evidence from panel data.' Regional Science and Urban Economics, 43 (5). pp. 797-807. ISSN 0166-0462

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This paper combines individual data from the British Household Panel Survey and yearly population estimates for England to analyse the impact that cultural diversity has on individual wages. Do people living in more diverse areas earn higher wages after controlling for other observable and unobservable characteristics? The results show that cultural diversity is positively associated with wages, but only when cross-section data are used, while panel data estimations show no impact of diversity. Since natives with comparatively higher skills – and wages – tend to self-select into more diverse areas, cross-section analyses may produce upwardly biassed results

Item Type: Article
Uncontrolled Keywords: Cultural diversity; Wages; Panel data
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences > Institute for Social and Economic Research
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 26 Feb 2014 09:23
Last Modified: 06 Jan 2022 14:39

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