Immigration and product diversity |
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| Authors: | Francesca Mazzolari David Neumark |
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| Institution: | (1) Centro Studi Confindustria, viale dell’Astronomia 30, 00144 Rome, Italy;(2) IZA, Bonn, Germany;(3) Department of Economics, University of California, Irvine, 3151 Social Science Plaza, Irvine, CA 92697, USA;(4) NBER, Cambridge, MA, USA;(5) Public Policy Institute of California, San Francisco, CA, USA;; |
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| Abstract: | We study the effects of immigration on the diversity of consumption choices. Data from California in the 1990s indicate that
immigration is associated with fewer stand-alone retail stores and a greater number of large and in particular big-box retailers—evidence
that likely contradicts a diversity-enhancing effect of immigration. In contrast, focusing on the restaurant sector for which
we can better identify the types of products consumed by customers, we find that immigration is associated with increased
ethnic diversity of restaurants. This latter effect appears to come in part from the comparative advantage of immigrants in
the production of ethnic goods. |
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