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Racial Diversity and Aggregate Productivity in US Industries: 1980-2000
| Venue: | Southern Economic Journal |
| Citations: | 4 - 0 self |
BibTeX
@ARTICLE{Sparber_racialdiversity,
author = {Chad Sparber},
title = {Racial Diversity and Aggregate Productivity in US Industries: 1980-2000},
journal = {Southern Economic Journal},
year = {},
pages = {829--856}
}
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Abstract
This paper employs industry-level US Census data from 1980-2000 to assess the aggregate effects of racial diversity. While most international accounts find that diver-sity reduces productivity, I argue that the US experience is more nuanced. Unqualified statements about the costs and merits of diversity are unwarranted, as racial hetero-geneity increases productivity within many, but not all, industries. Sectors employing a large number of workers responsible for creative decision-making and customer service experience gains from diversity, while industries characterized by high levels of group effort suffer losses. The results thus reconcile two competing literatures by suggest-ing that diversity improves decision-making and problem solving, but also encumbers common action and public goods provision.
Keyphrases
racial diversity u industry aggregate productivity diver-sity reduces productivity racial hetero-geneity increase productivity customer service experience gain high level group effort international account u experience encumbers common action public good provision creative decision-making aggregate effect large number problem solving unqualified statement industry-level u census data
