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Table 3 Weighted OLS and FE estimates showing the impact of diversity on wages. Dependent variable: log of weekly wages

From: The regional impact of cultural diversity on wages: evidence from Australia

 

OLS

Fixed effect

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Diversity index

0.199***

0.091***

0.357***

0.279***

−0.012

−0.020

−0.059

 

(0.029)

(0.021)

(0.063)

(0.064)

(0.017)

(0.014)

(0.045)

Diversity index—squared

–

–

−0.318***

−0.262***

–

–

0.045

   

(0.069)

(0.070)

  

(0.049)

Demographic controls

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Human capital controls

 

Yes

Yes

Yes

 

Yes

Yes

Time dummies

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Individual effects

    

Yes

Yes

Yes

Movers (0 = not moved; 1 = moved)

   

Yes

   

Ancestry (0 = foreign-born; 1 = Australian-born)

   

Yes

   

Residence (0 = rural; 1 = urban)

   

Yes

   

Observations

20,238

20,156

20,156

20,055

20,241

20,159

20,159

F-statistic

164.65

250.39

243.07

240.1

182.60

229..56

219.37

R-squared

0.222

0.594

0.595

0.607

0.053

0.327

0.329

  1. Values are estimated for the HILDA wave 4–11 respondents aged 16–45 years. Robust standard errors are in parentheses and are adjusted for clusters by individuals. The reported sample sizes differ from the original (n = 44,634) due to sample weighting and lagging. Demographic controls include age and age-squared in all models, plus gender and marital status in the OLS models. Human capital controls include education, weekly hours worked, and job tenure, in all models, plus English language skill in OLS
  2. Significance values indicate *p < 0.1; **p < 0.05; ***p < 0.01
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