Industrial Diversity Versus Occupational Diversity: Comparing the Effects on Regional Productivity Growth in Norway
Description
Full text not available
Abstract
In this paper, we investigated the economic effects of diversity on regional productivity growth, distinguishing between regional industrial and occupational diversity. By taking a comparative approach, we aimed to answer the research question – which type of diversity, occupational or industrial, matters more for explaining regional productivity growth. To answer the research question, we conducted a quantitative analysis in the form of an OLS regression, based on a linked-employer-employee dataset and productivity data from Norway for the years 2009–2014. We found higher levels of industrial diversity to be negatively associated with regional productivity growth. On the other side, we found a positive relationship between occupational diversity and regional productivity growth. This dissimilar impact on regional productivity growth highlights the importance of distinguishing between industrial and occupational diversity. We conclude that both, industrial and occupational diversity, need to be considered with regards to regional development and productivity growth.