This chapter reviews studies that analyse the economic impact of diversity on the macro (country), meso (region) and micro (firm or team) levels, as diversity is likely to be relevant on all these levels but through different mechanisms and with different outcomes.1 In addition, it provides a short overview of the literature on how diversity may spill over and impact social cohesion and preferences for redistribution. The OECD, together with the Paris Dauphine University and with the support of national HR Associations, conducted an online survey in 2017/18 to gather evidence on the experiences and views of HR professionals regarding diversity practices in their firms. Social Justice Perspective of Diversity: Overview & Example 987-1015. 89, pp. Using historic data from 18701920 from the age of mass migration to the UnitedStates, Ager and Brckner (2013[33]) find that higher immigrant diversity is related to stronger economic development at the county level, whereas a stronger polarisation, i.e. [5] Ozgen,C., P.Nijkamp and J.Poot (2012), Immigration and innovation in European regions, in Nijkamp,N., J.Poot and M.Sahin (eds.). Other terms such as, 'plurality', 'multiculturalism', 'social differentiation' etc. 18/5, pp. Indeed, a field testing study has found that compared to natives, candidates with a foreign sounding name are equally often invited to a job interview if they apply for occupations for which vacancies are difficult to fill (Baert, Cockx and Gheyle, 2015[49]). 500509. They find that diversity in education and nationality have a positive impact on product innovation for a firm. As hypothesised, we found that in the short term, individuals react negatively to changes in religious diversity, experiencing a dip in their quality of life. In recent years the Australian Multicultural Council has played an important leadership role in this regard. [16] Adams,R. and D.Ferreira (2009), Women in the boardroom and their impact on governance and performance, Journal of financial economics, Vol. due to communication difficulties, Positive self-selection: unobservable characteristics such as grit and determination to overcome additional hurdles, e.g. It is the position of the Commission that we need legislative protection across all human rights not just racial discrimination. In essence, the definition of social impact means any significant or positive changes that solve or at least address social injustice and challenges. It is a combination of our differences that shape our view of the world, our perspective and our approach[1]. (2015), Does Gender Matter? 16, pp. Under the leadership of Judge Rauf Soulio the AMC has acted as an important adviser to the Government on multicultural affairs and has been a champion in advancing multiculturalism. Similarly, an analysis of reports filed in the context of the Dutch diversity law Wet SAMEN finds that skilled labour market shortage impacts ethnic minority representation positively (Verbeek, 2012[50]). Twice he has now been subjected to racist slurs while on the football field. The legislation provides for a Commission constituted by a President, and seven Commissioners that broadly reflect those human rights that have been the subject of federal legislation. There is a large literature that goes beyond the economic impact of diversity and seeks to assess how ethnic and immigrant diversity affects social cohesion and preferences for redistribution. Elements of social diversity can include ethnicity, lifestyle, religion, language, tastes and preferences. (ed. [43] Stolle,D., S.Soroka and R.Johnston (2008), When Does Diversity Erode Trust? [20] Schneid,M. etal. People of all cultures, background and faith have contributed to the development of the cultural and religious landscape of Australia. It has become clear that exclusion, discrimination and vilification on the grounds of race exists as an undeniable element of our otherwise successful multicultural society. See K Dunn, Challenging Racism: The Anti-Racism Research Project. Or consider purchasing the publication. This provision is so broad it is difficult to see any circumstances in public to which the protections would apply. Effects of Social and Cultural Diversity in a Workplace - GradesFixer Brothablack, Social cohesion, multiculturalism and racism. Research on how population diversity affects macro-economic outcomes has largely focused on the impact of immigrant diversity and mostly find a positive impact for high-income countries. Susanne Ricee is the Diversity and Inclusion Specialist and Researcher at Diversity for Social Impact. For example, studies on social cohesion in neighbourhoods show that the key element for weak social cohesion is the low socio-economic status of a neighbourhood rather than its ethnic diversity (Letki, 2008[37]; Tolsma, van der Meer and Gesthuizen, 2009[38]; Laurence, 2017[39]). Social Science & Medicine, 73 (7): 10451053. [49] Baert,S., B.Cockx and N.Gheyle (2015), Is There Less Discrimination in Occupations Where Recruitment Is Difficult?, ILR Review, Vol. Ancestral lands, waters and territories are of fundamental importance for their physical and cultural survival as peoples. As I highlighted earlier prejudice and discrimination are barriers to fair treatment and equal opportunity. [13] Post,C. and K.Byron (2015), Women on Boards and Firm Financial Performance: A Meta-Analysis, Academy of Management Journal, Vol. Although discrimination varied within sub-groups; Malaysian-born respondents reported the highest level of race discrimination (45%), followed by respondents who were born in India and Sri Lanka (42%), Singapore (41%), Indonesia (39%), and China and Hong Kong (39%). In the United States, there is a linear relationship between racial and ethnic diversity and better financial performance: for every ten percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8 percent. They also show that, by focusing only on the short term, we may draw an inaccurate, pessimistic conclusion about the impact of diversity. Economic and social impact of increasing Australia's humanitarian Thank you to the Affinity Foundation for the invitation to be here tonight for the 2014 Iftar dinner and to celebrate Ramadan. 3-14, Hamburg Institute of International Economics (HWWI), Hamburg. Note: (+) = impact is positive and statistically significant; (-) = impact is negative and statistically significant; (/) = impact is statistically insignificant. The majority of country-specific studies focuses on the UnitedStates. The Scanlon Foundation Surveys National Report. However, while the impact of diversity might be small, there is a strong economic argument against discrimination and non-inclusion based on the sizeable cost associated with it. Examples include increased genetic diversity owing to intergroup mating, sharing of knowledge and information, and access to new resources. Social diversity is initially threatening but people do adapt over time Overall, however, the literature does not allow to make a strong business case; neither for nor against increasing the share of women in company boards. [32] Ottaviano,G. and G.Peri (2006), The economic value of cultural diversity: evidence from US cities, Journal of Economic Geography, Vol. Diversity is about what makes each of us unique and includes our backgrounds, personality, life experiences and beliefs, all of the things that make us who we are. In addition to the narrow definition the Commission has expressed its concern about the breadth of the exemption in subsection (4) of the exposure draft. It gives effect to Australias international human rights commitments and promotes equality between people of different backgrounds. Cultural Diversity in Politics and Media Will Create National 104/4, pp. Survival, according to this view, depended on protecting the group from the potential dangers posed by unknown others who were approached with caution. Since post-war migration began, Australia has been taking in a million immigrants each decade from all regions of the world. Most studies discussed in this section discuss the impact of migrant diversity and gender, which reflects both the interest of the public debate as well as the focus of the literature. There is a large, multi-disciplinary interest on the impact of diversity, including the field of management and HR, psychology and economics, including labour economics, trade and the political economy literature. In the second reading speech for the Bill the Attorney-General, Michael Lavarch, stated that: It needs to be recognised that racial hatred does not exist in a vacuumit provides a climate in which people of a particular race or ethnic origin live in fear and in which discrimination can thrive. In this report, we explored factors related to whether people thought an increasing number of people of many different races, ethnic groups and nationalities made their country a better place to live. [10] McGuirk,H. and D.Jordan (2012), Local labour market diversity and business innovation: evidence from Irish manufacturing businesses. [27] Cooke,A. and T.Kemeny (2017), Cities, immigrant diversity, and complex problem solving, [28] Docquier,F. etal. This is perhaps the reason why research has found that trust and social cohesion are lower in diverse communities and why, in experimental labs, individuals interacting with unknown members of a different social group show increased stress and anxiety. 987-1015. Also on the AFL field, Melbournes Neville Jetta was subjected to racial abuse during a game against the Western Bulldogs. Regarding attitudes towards social spending and redistribution, in EU countries, positive attitudes among native-born towards income redistribution decrease with higher immigrant diversity and a higher share of immigrants in the population (Alesina, Harnoss and Rapoport, 2014[42]). 4 Benefits Of Cultural Diversity In Australia & Other Aspects [12] Parrotta,P., D.Pozzoli and M.Pytlikova (2014), Labor diversity and firm productivity. [40] Baldwin,K. and J.Huber (2010), Economic versus Cultural Differences: Forms of Ethnic Diversity and Public Goods Provision, American Political Science Review, Vol. This means that findings are not representative of all sectors or even firms within that sector. The Attorney-General has talked of a multi-front war being waged against freedom of speech and proposes new provisions to strengthen this freedom. [21] Bell,S. etal. A successful community in which individuals of different race, ethnicity, religious beliefs, socioeconomic status, language, geographical origin, gender and/or sexual orientation bring their different knowledge, background, experience and interest for the benefit of their diverse community. That public awareness campaign is a central part of the National Anti-Racism Strategy that the Commission leads. The perpetrator was never identified however the Western Bulldogs made the following statement: It has been the club's initiative to make this matter public and to acknowledge the wrongdoing of one of our own supporters. Another area of the literature looks specifically at the impact of inequality between groups on public goods provision and attitudes towards redistribution. By 2031, it is estimated that this number will exceed one million, with Aboriginal and Torres Strait Islander people comprising 3.9 per cent of the population. Findings of a survey of Human Resource professionals across a range of OECD countries (see Box2.1 for more detail) also show that participating firms have become increasingly concerned with this topic; around two in three think that the topic of diversity management has become more important in their firm in the past fiveyears. Face the facts: Cultural Diversity | Australian Human - Human Rights [41] Delhey,J. and K.Newton (2005), Predicting Cross-National Levels of Social Trust: Global Pattern or Nordic Exceptionalism?, European Sociological Review, Vol. Multiculturalism has been an important element in the making of modern Australia, and has been critical to fostering social cohesion and inclusion. The lack of diversity in Australian politics has been apparent for years. [34] Alesina,A. and E.La Ferrara (2005), Ethnic Diversity and Economic Performance. It is itself a threat to the well-being of the whole community as well as to the individual or groups in the communitythe bill strikes a balance between the right of free speech and other rights of Australians.. it provides a safety net for racial harmony in Australia sends a clear warming to those who might attack the principle of tolerance.. and provides Australians who are the victims of racial hatred or violence with protection. 21/4, pp. Select one or more items in both lists to browse for the relevant content, Browse the selectedThemes and / or countries. (2016), Age diversity and team outcomes: a quantitative review, Journal of Managerial Psychology, Vol. Employers will increasingly feel the cost of discriminatory behaviour in the context of growing labour market shortages, as their competitiveness will suffer from irrational hiring preferences (Gary Becker, 1957). 64, pp. In addition, the composition of migrants in terms of different countries of origin is found to be a more important driver for innovation than the regional population size of foreign-born. [34] Alesina,A. and E.La Ferrara (2005). Research into the Current and Emerging Drivers for Social Cohesion, Social Division and Conflict in Multicultural Australia. I caution the Government to consult widely and extensively before making any changes, as any amendments to the legislation have the capacity to affect the human rights of all Australians. But diverse communities also provide an opportunity for people from different racial and ethnic backgrounds to come into contact with each other, and we thought that these experiences would create a positive effect on people's identities: specifically, the extent to .
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