Ceren Ozgen, University of Birmingham - Does Past Experience and Exposure to Foreigners at Workplace Increase Earnings Growth? [Population & Spatial Analysis]
12:00pm - 1:00pm /
Tuesday 7th February 2017
/ Venue: Lecture Theatre 1 Gordon Stephenson Building
Type: Seminar /
Category: Department
- 0151 795 0619
- Jamie Hughes
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The recent migration literature emphasizes the importance of cultural diversity for increased productivity at the regional and firm level. Most of the empirical evidence so far, provided through area level studies, examines whether the natives' wages are higher in metropolitan areas where culturally and linguistically diverse group of immigrants are located. The intuition behind finding an economic value in diversity is the potential it offers for enhanced creativity and innovativeness through combining varied ideas, knowledge, and skills of different cultures. At a more refined level, we estimate workers' earnings growth with respect to their past employment experience. Our identification strategy relies on comparing wage growth of workers belonging to the same firm, yet with different past employment experiences. Using administrative data from the Netherlands, we study wage growth of about 40,000 young employees with four years of work experience for the period 2004-2008. We demonstrate that employees who were employed in larger firms experience less wage growth later on. Having worked in multicultural firms neither in terms of number of foreigners or the composition of foreigners does not affect wage growth.