Immigrant Diversity and Economic Performance in Cities

Abstract

This article reviews a growing literature investigating how ''immigrant'' diversity relates to urban economic performance. As distinct from the labor-supply focus of much of the economics of immigration, this article reviews work that examines how growing heterogeneity in the composition of the workforce may beneficially or harmfully affect the production of goods, services, and ideas, especially in regional economies. Taking stock of existing research, the article argues that the low-hanging fruit in this field has now been picked and lays out a set of open issues that need to be taken up in future studies in order to fulfill the promise of this work.

Skilled migration and innovation in European industries

“…Kerr and Lincoln, 2010;Hunt, Gauthier-Loiselle, 2010;Chellaraj et al, 2008;No and Walsh, 2010;Stephan and Levin, 2001;Bosetti et al 2015) and the second one underlines the role of ethnic and cultural diversity (e.g. Ottaviano and Peri 2012;Østergaard et al 2011;Ozgen et al 2012;Niebhur, 2010;Nathan and Lee, 2013;Nathan, 2015; for a survey Kemeny, 2017).…”

“…Ethnic diversity is typically used as a proxy of cultural diversity and measured at the firm or regional level. Diversity at the firm level enhances innovation because it broadens the firm's knowledge base, allows for new knowledge combinations, enhancing problem solving and the generation of new ideas (Østergaard et al 2011;Parrotta et al 2014;Kemeny and Cooke, 2017;Kemeny, 2017). At the same time diversity can create barriers to interaction and communication and lead to conflicts and lack of common action.…”

Spillovers from immigrant diversity in cities

“…Because it is the most widely used measure in the field, in much of the proceeding analysis, we estimate metropolitan as well as establishment-specific levels of diversity using the fractionalization index, using the universe of LEHD-coded worker birthplaces in a metropolitan area or work unit. 9 Responding to discussions about the appropriate means of capturing heterogeneity (Dawson, 2012;Alesina et al, 2013;Kemeny, 2014;Nijkamp and Poot, 2015), we consider alternative metropolitan diversity indices. 10 Although these are likely to be correlated with the fractionalization index, each measure captures diversity in a somewhat different way, and none is clearly superior.…”

Sari vs. Dim Sum – Business Improvement Areas and the Branding of Toronto's Ethnic Neighbourhoods

“…A recent body of literature shows that diversity produces costs and benefits for cities. It differentiates sectors of the labour market and contrasts skilled diversity against lower-skilled migrant workers, supporting the claim that urban development does not draw on all kinds of diversity (Syrett & Sepulveda 2011;Nathan 2015Nathan , 2016Kemeny 2017). Furthermore, it highlights possible competition between new and established migrant groups (Nathan 2015).…”