DOES LABOR DIVERSITY AFFECT FIRM PRODUCTIVITY

摘要: Using an employer-employee dataset, we analyze how diversity in cultural background, skills and demographic characteristics affects total factor productivity (TFP) of firms Denmark. Implementing structural estimation firms’ production function, find evidence that labor skills/education significantly enhances firm performance as measured by TFP. Conversely, demographics ethnicity brings mixed results – both dimensions workforce have either no or negative effects on Hence, it seems if the effects, coming from communication integration costs connected to a more demographically culturally diverse workforce, counteract positive TFP, creativity knowledge spillovers. However, ethnic is valuable for operating industries characterized above-average trade openness, giving support hypothesis ethnically provides information access global markets.