Inherited cultural diversity and wages in Brazil por Ehrl e Monasterio

Aqui. Abstract:

Inherited cultural diversity and wages in Brazil

This paper estimates the long-term impact of immigration to Rio Grande do Sul/Brazil on contemporary wages. Based on a unique micro-data panel that includes the names of workers, we apply machine learning algorithms to classify surnames and infer each workers’ ancestry in order to calculate the inherited cultural diversity in the workforce by municipality. We address the endogeneity of cultural diversity by using three sets of instruments: distance to settlements created by the government for non Iberian immigrants between 1824-1918, share of street names with foreign surnames and share of foreigners in 1920. Our IV-estimations prove robust to human capital differences, institutions, geography, the spatial sorting of workers based on intrinsic abilities and the diffusion of knowledge through imports. The results clearly indicate that an increase in diversity – exclusively transmitted through the share of workers with non-Iberian ancestry – leads to a positive wage externality.

Eu já apresentei o trabalho no encontro da Urban Economics Association e o Philipp apresentará nessa conferência na próxima semana.
Como sempre, comentários são mais do que bem-vindos!

PS: Eba! Marginal Revolution divulgou o paper !!!