Does Reducing Communication Barriers Promote Diversity?

53 Pages Posted: 25 Jul 2022 Last revised: 5 Jun 2023

See all articles by Miaomiao Dong

Miaomiao Dong

Pennsylvania State University, Department of Economics

Tatiana Mayskaya

National Research University Higher School of Economics (Moscow) - International College of Economics and Finance; National Research University Higher School of Economics (Moscow) - Faculty of Economics

Date Written: June 5, 2023

Abstract

We study optimal diversity (in expertise) in hiring decisions. The key trade-off is that, while hiring a more diverse team enlarges the team's pool of knowledge, it may also discourage communication between the hired experts. Equilibrium diversity balances this trade-off. We find that a gradual reduction in communication costs can lower diversity, but a big reduction in communication costs will eventually foster diversity.

Keywords: diversity, communication

JEL Classification: D82, D83, M14

Suggested Citation

Dong, Miaomiao and Mayskaya, Tatiana, Does Reducing Communication Barriers Promote Diversity? (June 5, 2023). Available at SSRN: https://ssrn.com/abstract=4164162 or http://dx.doi.org/10.2139/ssrn.4164162

Miaomiao Dong

Pennsylvania State University, Department of Economics ( email )

University Park, PA
United States

Tatiana Mayskaya (Contact Author)

National Research University Higher School of Economics (Moscow) - International College of Economics and Finance ( email )

Pokrovski Bulvar 11, Korpus Zh, Office 715
Moscow, 109028
Russia

National Research University Higher School of Economics (Moscow) - Faculty of Economics ( email )

Shabolovka 26
Moscow, 119049
Russia

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