Collaborative Research: Workforce Diversity and Corporate Performance

University Of Arizona, Tucson AZ

Investigators

Abstract

SES-1023279 PI: Frank R. Dobbin Institution: Harvard University SES-1023591 PI: Alexandra Kalev Institution: University of Arizona The investigators examine how corporate diversity influences performance across time, occupations, and industries. Some studies suggest that diversity in the workplace will lead to conflict and suppress corporate performance while other studies suggest that demographic diversity can improve creativity, innovation, work group performance, and network connections. The researchers hypothesize that any negative effects of conflict will dissipate with time, leaving the positive effects of workplace diversity. Two datasets on corporations are combined: the Compustat financial dataset covering publicly traded companies in the U.S., and the federally mandated EEO1 reports, detailing the gender, race, and ethnic breakdown of workers in U.S. workplaces. A sample of 3000 publicly traded companies that meet the EEO1 reporting requirements are merged for the years 1971 to 2010 from the two data sources. The resulting dataset provides some 33,000 company-by-year observations, spanning four decades. Broader Impacts: As the U.S. population and workforce become more diverse, with the growth of immigrants from Asia, Latin America, the Caribbean, and Africa, this research will provide insight into how diversity contributes to productivity, and where and why it poses problems.