Ethnic Diversity and Well-Being

42 Pages Posted: 15 Feb 2016

See all articles by Alpaslan Akay

Alpaslan Akay

IZA Institute of Labor Economics

Amelie F. Constant

Princeton University; UNU-MERIT; CESifo

Corrado Giulietti

Department of Economics

Martin Guzi

Masaryk University; Central European Labour Studies Institute (CELSI); IZA Institute of Labor Economics

Abstract

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.

Keywords: ethnic diversity, subjective well-being, assimilation, multiculturality

JEL Classification: C90, D63, J61

Suggested Citation

Akay, Alpaslan and Constant, Amelie F. and Giulietti, Corrado and Guzi, Martin, Ethnic Diversity and Well-Being. IZA Discussion Paper No. 9726. Available at SSRN: https://ssrn.com/abstract=2731989

Alpaslan Akay (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Amelie F. Constant

Princeton University ( email )

189 Wallace Hall
Princeton, NJ 08544
United States

HOME PAGE: http://opr.princeton.edu/visitors/

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

HOME PAGE: http://www.merit.unu.edu/about-us/profile/?staff_id=2419

CESifo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo-group.de/ifoHome/research/Network/Members.html

Corrado Giulietti

Department of Economics ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

Martin Guzi

Masaryk University ( email )

Lipova 41a
Brno, 60200
Czech Republic
+420549496766 (Phone)

HOME PAGE: http://www.muni.cz/econ/people/233611

Central European Labour Studies Institute (CELSI)

Zvolensk√° 29
Bratislava, 82109
Slovakia

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://legacy.iza.org/en/webcontent/personnel/photos/index_html?key=5347

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