Publication:
The Impact of Ethnic Fractionalization on Labor Productivity: Does Firm Size Matter?

Simple item page
dc.contributor.authorAmin, Mohammad
dc.contributor.authorKhalid, Usman
dc.date.accessioned2023-03-29T19:13:46Z
dc.date.available2023-03-29T19:13:46Z
dc.date.issued2023-03-29
dc.description.abstractEthnic fractionalization has both positive and negative consequences. It is contended that the positive effects due to skill complementarity in the production process apply to large firms that have more complex and diversified production structures. Because small businesses rely more on public goods and have less access to institutions, the negative effects of lower quality public goods and higher transaction costs have a greater impact on them. Consistent with this viewpoint, it is found that a larger firm size significantly mitigates the negative impact of higher ethnic fractionalization on the level and growth rate of labor productivity in manufacturing firms across 84 developing countries. There is no robust and significant impact of ethnic fractionalization on large firms for the main and most of the other firm size categorizations considered. The results are confirmed by the instrumental variables estimation method, which uses the duration of early human settlement in each country to instrument ethnic fractionalization. Evidence is provided on the potential mechanisms by which ethnic fractionalization affects small versus large firms. The findings have significant policy implications, which are discussed in detail.en
dc.identifierhttp://documents.worldbank.org/curated/en/099301003272322957/IDU0a26825c20729b04225082d502fb054d90104
dc.identifier.doi10.1596/1813-9450-10375
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39618
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10375
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectETHNIC FRACTIONALIZATION
dc.subjectLABOR PRODUCTIVITY
dc.subjectGROWTH
dc.subjectFIRM SIZE AND LABOR PRODUCTIVITY
dc.subjectLARGE FIRM WORKERS
dc.subjectMANUFACTURING PRODUCTIVITY
dc.titleThe Impact of Ethnic Fractionalization on Labor Productivityen
dc.title.subtitleDoes Firm Size Matter?en
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleThe Impact of Ethnic Fractionalization on Labor Productivity: Does Firm Size Matter?
okr.date.disclosure2023-03-27
okr.date.lastmodified2023-03-27T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099301003272322957/IDU0a26825c20729b04225082d502fb054d90104
okr.guid099301003272322957
okr.identifier.doi10.1596/1813-9450-10375
okr.identifier.externaldocumentum34029276
okr.identifier.internaldocumentum34029276
okr.identifier.reportWPS10375
okr.import.id280
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099301003272322957/pdf/IDU0a26825c20729b04225082d502fb054d90104.pdfen
okr.region.geographicalWorld
okr.topicInternational Economics and Trade::Trade Technology and Productivity
okr.topicSocial Development::Nationalities & Ethnic Groups
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.unitEnterprise Analysis-IFC (DECEA)
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU0a26825c20729b04225082d502fb054d90104.pdf
Size:
4.94 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU0a26825c20729b04225082d502fb054d90104.txt
Size:
304.25 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers