The authors would like to thank Statistics Belgium for providing access to the data. They are grateful to Mahmood Araï, Philippe Askenazy, Andrew Clark, Jeremy Dawson, Patricia Garcia-Prieto, Pekka Ilmakunnas, Luca Marcolin, Sile O'Dorchai, Dario Pozzoli, Ilan Tojerow, the editor, and two anonymous referees, as well as audiences in Brussels (ULB), Paris (PSE and Paris I), Caserta (AIEL), Nuremberg (IAB), Leuven (Day for Labour Economists), Buch am Ammersee (IZA Summer School), and Turin (EALE) for helpful comments and discussions. Funding for this research was provided by the Belgian Federal Government–SPP Politique scientifique, programme “Société et Avenir,” Employment, wage discrimination and poverty, research contract TA/00/046/EDIPO. All remaining errors are the authors' responsibility. Andrea Garnero gratefully acknowledges financial support from CEPREMAP. The usual disclaimer applies.
The Heterogeneous Effects of Workforce Diversity on Productivity, Wages, and Profits
Article first published online: 3 JUN 2014
© 2014 Regents of the University of California
Industrial Relations: A Journal of Economy and Society
Volume 53, Issue 3, pages 430–477, July 2014
How to Cite
Garnero, A., Kampelmann, S. and Rycx, F. (2014), The Heterogeneous Effects of Workforce Diversity on Productivity, Wages, and Profits. Industrial Relations: A Journal of Economy and Society, 53: 430–477. doi: 10.1111/irel.12064
- Issue published online: 3 JUN 2014
- Article first published online: 3 JUN 2014
- Belgian Federal Government–SPP Politique scientifique
We estimate the impact of workforce diversity on productivity, wages, and productivity–wage gaps (i.e., profits) using detailed Belgian linked employer–employee panel data. Findings show that educational (age) diversity is beneficial (harmful) for firm productivity and wages. While gender diversity is found to generate significant gains in high-tech/knowledge-intensive sectors, the opposite result is obtained in more traditional industries. Estimates neither vary substantially with firm size nor point to sizeable productivity–wage gaps except for age diversity.