Ethnic Diversity and Well-Being

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GUZI Martin AKAY Alpaslan CONSTANT Amelie F. GIULIETTI Corrado

Year of publication 2016
Type Article in Periodical
Magazine / Source IZA Discussion Paper
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords ethnic diversity subjective well-being assimilation multiculturality
Description This paper investigates how ethnic diversity, measured by the immigrants’ countries of origin, influences the well-being of the host country. Using panel data from Germany for the period 1998 to 2012, we find a positive effect of ethnic diversity on the well-being of German citizens. To corroborate the robustness of our results, we estimate several alternative specifications and investigate possible causality issues, including non-random selection of natives and immigrants into regions. Finally, we explore productivity and social capital as potential mechanisms behind our finding.
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