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Research ArticleArticle

Diversity and Employment Prospects: Neighbors Matter!

Camille Hémet and Clément Malgouyres
Published online before print July 07, 2017, 0115-6895R1; DOI: https://doi.org/10.3368/jhr.53.3.0115.6895R1
Camille Hémet
*Camille Hémet is assistant professor at Ecole Normale Supérieure and Paris School of Economics and a research fellow with the CEPR.
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  • For correspondence: [email protected]
Clément Malgouyres
†Clément Malgouyres is a research economist at Banque de France.
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Abstract

Using recent data from the French Labor Force Survey, this paper explores how diversity affects individuals’ employment prospects at various geographic levels. Employment correlates positively with local labor market diversity, but negatively with neighborhood diversity. Using several approaches to deal with the endogeneity of local labor market diversity, we do not find any robust evidence of a causal impact of diversity on employment at this rather aggregate level, suggesting that immigrants actually tend to self-select into more economically dynamic areas. However, taking advantage of the very precise localization of the data in order to correct biases related to residential sorting, we confirm a negative effect of neighborhood diversity. We also show that diversity in terms of nationalities matters more than diversity based on parents’ origins, giving insights on the underlying mechanisms.

JEL Classification
  • J15
  • J60
  • R23
  • Z13
Keywords
  • diversity
  • employment
  • neighborhood effects
  • © 2017 by the Board of Regents of the University of Wisconsin System

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Journal of Human Resources: 58 (1)
Journal of Human Resources
Vol. 58, Issue 1
1 Jan 2023
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Diversity and Employment Prospects: Neighbors Matter!
Camille Hémet, Clément Malgouyres
Journal of Human Resources Jul 2017, 0115-6895R1; DOI: 10.3368/jhr.53.3.0115.6895R1

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Diversity and Employment Prospects: Neighbors Matter!
Camille Hémet, Clément Malgouyres
Journal of Human Resources Jul 2017, 0115-6895R1; DOI: 10.3368/jhr.53.3.0115.6895R1
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Keywords

  • J15
  • J60
  • R23
  • Z13
  • diversity
  • employment
  • neighborhood effects
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