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Birthplace Diversity and Economic Growth: Evidence from the US States in the Post-World War II Period

Author

Listed:
  • Docquier, Frédéric

    (LISER)

  • Turati, Riccardo

    (Universitat Autònoma de Barcelona)

  • Valette, Jérôme

    (CEPII, Paris)

  • Vasilakis, Chrysovalantis

    (Bangor University)

Abstract
This paper empirically revisits 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 affects economic growth. We provide converging evidence pointing at the existence of skill complementarities between workers trained in different 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 acquired 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 insignificant effects.

Suggested Citation

  • Docquier, Frédéric & Turati, Riccardo & Valette, Jérôme & Vasilakis, Chrysovalantis, 2018. "Birthplace Diversity and Economic Growth: Evidence from the US States in the Post-World War II Period," IZA Discussion Papers 11802, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11802
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    More about this item

    Keywords

    birthplace diversity growth; immigration culture;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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