“…On the one hand, and mostly in the US, ethnic diversity is negatively correlated with social capital or cohesion measured by trust, altruism, reciprocity, cooperation and civic engagement (e.g., Portes, 1998, Alesina et al, 1999, Alesina and La Ferrara, 2002, Putnam, 2007. On the other hand, other studies found that ethnic diversity is either not negatively related to social trust, or it is even positively correlated to it (e.g., Kazemipur, 2006 for Canada, Sturgis et al, 2011 andSturgis et al, 2014 for the UK, and Stolle et al, 2013 for Germany). Moreover, some studies found positive effects of ethnic diversity on the labor market outcomes of both natives and immigrants through gains in productivity (Ottaviano and Peri, 2005, Trax et al, 2015, Suedekum et al, 2014, Glitz, 2014 as well as increases in innovation (Hewlett et al, 2013).…”