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Title: Cultural Diversity, Institutions, and Urban Economic Performance

Citation Type: Journal Article

Publication Year: 2012

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Abstract: Interactions between culturally diverse individuals can spur economic benefits by stimulating new ideas that raise urban residents productivity. But diversity can also diminish economic well-being by making communication difficult, and by stimulating conflict. This paper investigates whether urban institutionsin particular residents sense of generalized trustdetermine when diversity is an economic asset and when it is a liability. To do so, data on trust, birthplace diversity, wages, and demographics in US metropolitan areas are combined. The evidence suggests that workers are much better able to harness the productivity-enhancing spillovers that arise from cultural diversity when they live in cities endowed with strong informal institutions.

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Authors: Kemeny, Thomas

Periodical (Full): Environment and Planning

Issue: 9

Volume: 44

Pages: 2134-2152

Data Collections: IPUMS USA

Topics: Housing and Segregation, Labor Force and Occupational Structure, Migration and Immigration

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