Birthplace Diversity and Economic Growth: Evidence from the US States in the Post-World War II Period
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In: Journal of Economic Geography, Vol. 20, No. 2, 03.2020, p. 321-354.
Research output: Contribution to journal › Article › peer-review
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TY - JOUR
T1 - Birthplace Diversity and Economic Growth: Evidence from the US States in the Post-World War II Period
AU - Vasilakis, Chrysovalantis
AU - Docquier, Frederic
AU - Turrati, Riccardo
AU - Valette, Jerome
N1 - This is a pre-copyedited, author-produced version of an article accepted for publication in Journal of Economic Geography following peer review. The version of record Frédéric Docquier, Riccardo Turati, Jérôme Valette, Chrysovalantis Vasilakis, Birthplace diversity and economic growth: evidence from the US states in the Post-World War II period, Journal of Economic Geography, lbz016 is available online at: https://doi.org/10.1093/jeg/lbz016.
PY - 2020/3
Y1 - 2020/3
N2 - This paper empirically investigates the impact of birthplace diversity on economic growth. We use panel data on US states over the 1960-2010 period. This rich data set allows us to better deal with endogeneity issues and to conduct a large set of robustness checks. Our results suggest that diversity among college-educated immigrants positively aﰃects economic growth. We provide converging evidence pointing at the existence of skill complementarities between workers trained in diﰃerent countries. These synergies result in better labor market outcomes for native workers and in higher productivity in the R&D sector. The gains from diversity are maximized when immigrants originate from economically or culturally distant countries (but not both), and when they ac- quired part of their secondary education abroad and their college education in the US. Overall, a 10% increase in high-skilled diversity raises GDP per capita by about 6%. On the contrary, low-skilled diversity has insigniﰄcant eﰃects.
AB - This paper empirically investigates the impact of birthplace diversity on economic growth. We use panel data on US states over the 1960-2010 period. This rich data set allows us to better deal with endogeneity issues and to conduct a large set of robustness checks. Our results suggest that diversity among college-educated immigrants positively aﰃects economic growth. We provide converging evidence pointing at the existence of skill complementarities between workers trained in diﰃerent countries. These synergies result in better labor market outcomes for native workers and in higher productivity in the R&D sector. The gains from diversity are maximized when immigrants originate from economically or culturally distant countries (but not both), and when they ac- quired part of their secondary education abroad and their college education in the US. Overall, a 10% increase in high-skilled diversity raises GDP per capita by about 6%. On the contrary, low-skilled diversity has insigniﰄcant eﰃects.
UR - https://oup.silverchair-cdn.com/oup/backfile/Content_public/Journal/joeg/20/2/10.1093_jeg_lbz016/2/lbz016_supplementary_data.pdf?Expires=1618056425&Signature=zvcza3YYGM79Mm7A1L6fYRWII~jrp6R-db7ImHU7QfcIujG-dnSaSyZN9yOthfinv27zYjUXaMcqmwxlGfMOAUzUEdu~W3HAwNdM48GODSp7jKh~Wcf3PlJnBu3z0gxvg7YJGwh46vVmGCtBp8D3XpGq-wntqRvuyjrgDH9pav6HM2dgxo~XfIn2WVBTvT6g9l92XvuDJ1S3LFbcOyfPZFXGAkXUAXFbjMzPyLXAJI2QsHMV3WzB8tpaJ9Qkq70la9Aohu2j1vWLuDrXPdF8t1orA4ejzvrRTgC2iCjfJ1elbYjEWCHiDqp2Z3JjbL3ERtDjeAA6NldKUlnLMYC~Cg__&Key-Pair-Id=APKAIE5G5CRDK6RD3PGA
U2 - 10.1093/jeg/lbz016
DO - 10.1093/jeg/lbz016
M3 - Article
VL - 20
SP - 321
EP - 354
JO - Journal of Economic Geography
JF - Journal of Economic Geography
IS - 2
ER -