Environmental Valuation & Cost-Benefit News
Racial Diversity and Aggregate Productivity in US Industries: 1980-2000∗
12/30/07
02:48:33 pm, by damageva 
, 144 words, 86 views 
Categories: U.S., Academic Study/Journal Article, Economic Development, Costs and Benefits
Racial Diversity and Aggregate Productivity in US Industries: 1980-2000∗
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 diversity reduces productivity, Chad Sparber argues that the US experience is more nuanced. Unqualified statements about the costs and merits of diversity are unwarranted, as racial heterogeneity 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 suggesting that diversity improves decision-making and problem solving, but also encumbers common action and public goods provision.
Keywords: Racial Diversity, Productivity
by Chad Sparber; Colgate University; 13 Oak Drive; Hamilton, NY 13346; csparber@mail.colgate.edu
Colgate Universtiy http://people.colgate.edu
November, 2007
http://people.colgate.edu/csparber/Industry.pdf
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