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Ethnic Diversity and Well-Being
by Alpaslan Akay, Amelie F. Constant, Corrado Giulietti, Martin Guzi
(February 2016)
published in: Journal of Population Economics, 2017, 30(1), 265-306. Article

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.
Text: See Discussion Paper No. 9726