Is Diversity Bad for Economic Growth? Evidence from State-level Data in the US

Nazmun N. Ratna, Thomas Kompas, Quentin Grafton

    Research output: Contribution to journalArticle

    Abstract

    The paper examines the macroeconomic effects of social diversity in the United States. Employing a cross-sectional dataset for 48 states, we find mixed empirical evidence for the impact of diversity on Gross State Product (GSP) per capita growth: racial diversity reduces GSP growth, while linguistic diversity raises GSP growth. Our findings suggest that because English is used frequently by non-native speakers barriers to communications based on race are more pronounced and enduring than those based on linguistic differences. The results provide a justification for establishing 'weak ties' across diverse racial groups as a means to enhance economic performance.
    Original languageEnglish
    Pages (from-to)859-70
    JournalJournal of Socio-Economics
    Volume38
    DOIs
    Publication statusPublished - 2009

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