Journal Article

Impact of cultural diversity on wages, evidence from panel data

Authors

Publication date

Sep 2013

Summary

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.

Published in

Regional Science and Urban Economics

Volume and page numbers

43 , 797 -807

DOI

http://dx.doi.org/10.1016/j.regsciurbeco.2013.07.004

ISSN

16

Subjects

Area Effects, Wages And Earnings, and Well Being

Links

http://serlib0.essex.ac.uk/record=b1646471~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

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