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 . Here are some key reasons why diversity is important: Why is this the case? 271-280. Most studies consider either how the shares of foreign graduate students/inventors impact innovation in a given field or they construct a fractionalisation index based on country of birth or nationality, that gives an indication of the workforces diversity overall.2 Studies mostly consider patent applications or patents per capita as a proxy for innovation. Furthermore, gender-diverse boards allocate more effort to monitoring, while CEO compensation is found to be more sensitive to stock performance. Where possible, other forms of diversity (notably age and educational background) are also included. No complaint under these acts can go to a court, unless and until the matter has been considered by the Commission. 1011-1033. Our Australia's Diversity category covers a wide range of topics, including the history and impact of immigration, the importance of representation and inclusivity, and the distinct experiences of various communities across the country. Through an exposure draft the Government has outlined its intent to lift the ban on offending, insulting and humiliating someone over their race, colour or ethnicity. [45] Murtin,F. etal. They find a positive impact in the order of 4.5 percent, 6.8 percent and 5.0 percent, respectively for a 10 percent increase in the foreign graduate students as a percentage of total graduate students. While we must celebrate these important achievements this survey reminds us that racism is a pervasive issue in Australia, and is a significant impediment to social cohesion and low levels of social cohesion can have long term implication on a nations productivity and prosperity. While other nations have faced racial tensions and riots, we have experienced long-term social stability. [46] Kemeny,T. and A.Cooke (2017), Urban Immigrant Diversity and Inclusive Institutions. Research into the Current and Emerging Drivers for Social Cohesion, Social Division and Conflict in Multicultural Australia. Gaining a better understanding on how contextual factors mediate the impact of diverse teams is therefore an important area for future research, but due to the limited availability of data on such micro-level aspects of team composition and management, these studies will most likely have to focus on individual firms rather than a representative sample. 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. My colleague, Race Discrimination Tim Soutphommasane outlines that the notion of multiculturalism can refer respectively to our ethnic composition as a society, to our policies concerning citizenship and the integration of immigrants, and to the values that shape our everyday cultural interactions. 20, pp. (2011), Recent advances in intergroup contact theory, International Journal of Intercultural Relations, Vol. [30] Bove,V. and L.Elia (2017), Migration, Diversity, and Economic Growth, [31] Bellini,E. etal. What does significant diversity mean? Survey findings should be interpreted as giving a first indication of how HR professionals who are likely to be rather open towards diversity view these issues. Miles Hewstone received funding for the project discussed in this article from the Nuffield Foundation. In comparison with the previous reporting year, in 2012-13 we saw: Most complaints under the Racial Discrimination Act are about employment. Through multiculturalism, the Australian experience has shown has that diversity can go hand in hand with a stronger social cohesion. We are all diminished as a consequence. [25] Glover,D., A.Pallais and W.Pariente (2017), Discrimination as a self-fulfilling prophecy: evidence from French grocery stores. For the same reporting year we received 500 complaints under the Racial Discrimination Act, equating to nearly a quarter of all complaints received by the Commission. Thus, organisational practices, diversity management and non-discrimination policies can be important levers to make the most of a diverse workforce. 22. Term Definition; Diversity "The condition of having or being composed of differing elements" [4] Social Diversity "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 . Parent's Education and Wealth The previous generation's socioeconomic status has a huge impact on the socioeconomic status of the current generation. 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. This relationship is even stronger in more densely populated areas, pointing to possible agglomeration effects, i.e. At http://www.dss.gov.au/our-responsibilities/settlement-and-multicultural-affairs/publications/current-and-emerging-drivers-for-social-cohesion-social-division-and-conflict-in-multicultural-australia (viewed 23 June 2014). 101-138. [46] Kemeny,T. and A.Cooke (2017), Urban Immigrant Diversity and Inclusive Institutions, Economic Geography, Vol. The Scanlon Foundation utilises five indicators for social cohesion: I think you will all agree that in general Australia is a cohesive society, this backed by the research. For attitudes and behaviour to change we need a multifaceted response one that incorporates education, policy and legislation. [40] Baldwin,K. and J.Huber (2010), Economic versus Cultural Differences: Forms of Ethnic Diversity and Public Goods Provision. At: http:// www.uws.edu.au/social_sciences/soss/research/challenging_racism/findings_by_region (viewed 15 August 2013). 46, pp. Report prepared for: Joint Commonwealth, State and Territory Research Advisory Committee (RAC) March 2013. 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. The Social diversity Is a concept that defines and encompasses the great variety of different and similar characteristics that are shared between all human beings, both personally and at a group level. In Europe, research has also found a positive relationship between innovation and the share of the foreign-born population on a regional level (Ozgen, Nijkamp and Poot, 2012[5]). [25] Glover,D., A.Pallais and W.Pariente (2017), Discrimination as a self-fulfilling prophecy: evidence from French grocery stores, The Quarterly Journal of Economics, pp. I think it is also important to highlight that the Racial Discrimination Act as applied by the courts and administered by the Australian Human Rights Commission has successfully resolved hundreds of complaints about racial hatred over the past two decades. The Advantage Of Skilled Labor International Business Devising Profitable Strategies Expanding Markets Quality Resources Guaranteed Success Plans Improving Brand Image 4. (2018), Birthplace Diversity and Economic Growth: Evidence from the Us States in the Post-World War II Period. The Paris Principles set out the international minimum standards for the status and functioning of national human rights institutions. Similarly, if the gender gap in labour force participation across the OECD were to be reduced by 25% by 2025, this could add one percentage point to projected baseline GDP growth across the OECD over the period 2013-25, and almost 2.5percentage points if gaps were halved (OECD, 2017[48]). Why this is the case is difficult to determine. This suggests that there may be an optimal level of migrant diversity when it comes to innovation (Dohse and Gold, 2014[6]). Social Capital and Race in British Neighbourhoods. We accept and try to resolve by conciliation individual complaints of discrimination and human rights under the four major pieces of legislation. 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]). For example, Post and Byron (2015[13]) assessed 140 studies in a meta-study and found that on average, having more female directors is positively related to returns on assets and returns on equity, but that the effect was very small. Im often asked what are the types of situations that will be covered if the Exposure Draft is adopted in its current form? Its difficult to consider situations that would fall under the revisions; People of all religions, ethnic backgrounds, age and gender have so much to contribute, but this can only happen when there is a sense of inclusion and belonging, when people feel part of this country. labour market discrimination; positive selection of who migrates, More intra-group conflict: e.g. 1175-1185. [5] Ozgen,C., P.Nijkamp and J.Poot (2012), Immigration and innovation in European regions, in Nijkamp,N., J.Poot and M.Sahin (eds. To do this, we performed bivariate and multiple regression analyses predicting attitudes . When racist abuse rears its ugly head we will never as a club do what this person has done: disappear into anonymity. Meta-analysis of 140 studies in 35 countries (including non-OECD), Meta-analysis of 20 studies in 16 countries (including non-OECD), Ratio of the firm's market value to its book value (Tobins Q) (/), Ratio of the firm's market value to its book value (Tobins Q) (-), Share of female directors and ethnic minority directors on boards. 68/3, pp. With regards to the examination, these complexities incorporate high correspondence costs and the . It is critical that we have a source of leadership and guidance at the national level on multicultural issues and I encourage the Government to outline what it plans to do moving into the future. [47] Bon-Maury,G. etal. No.10239, Institute for the Study of Labor. The Governments proposal to amend the Racial Discrimination Act and the importance of the race hate laws to social cohesion. First, the individual or interpersonal level, which includes everyday racism that happens with speech, glances. Social diversity is all of the ways that people within a single culture are set apart from each other. 40, pp. When asked: Have you experienced discrimination because of your skin colour, ethnic origin or religion? 19% of respondents answered yes to the question; an increase of 7% on the previous year. This rich, cultural diversity is one of our greatest strengths. Second, the institutional or systemic level, which involves organizations like governments and the education or justice system. 644-662. One of those submissions was from the Australian Human Rights Commission. We are different precisely in order to realise our need of one another. Im sure you will all agree with me when I say, that is this diversity that is one of Australias greatest strengths and assets. [2] The United Nations defines a socially cohesive society where all groups have a sense of belonging, participation, inclusion, recognition and legitimacy.[3]. The majority of country-specific studies focuses on the UnitedStates. 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. Multiculturalism's impact on education. . The Temple of All Religions (Universal Temple), Kazan, Russia, consists of several types of religious architecture (church, mosque, synagogue). 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. The words offend, insult, humiliate or intimidate were drawn from the much earlier Sex Discrimination Act of 1984. These notions of equality, participation and empowerment are values that underpin our work at the Australian Human Rights Commission, including anti-discrimination laws in respect of disability, age, social justice and Aboriginal and Torres Strait Islanders, race, and gender. . In addition, there is evidence for the UnitedStates that at the city level, diversity generally has no significant impact on wages for low-skilled jobs, but has a positive impact on wages in high-skilled, high-income jobs that demand complex problem-solving (Cooke and Kemeny, 2017[27]). Before I move on to the issue of racism in Australia, Id like to provide you with a brief overview of the Australian Human Rights Commission. 227-239. Internationally, multiculturalism in Australia is seen as a success story, and stands as a good example on how to build a cohesive and inclusive society. Mapping Social Cohesion 2013. We therefore cannot talk about a truly cohesive and inclusive Australia without addressing racism, and the Racial Discrimination Act is vital tool within the Australian Human Rights framework to address and respond to racial vilification. Making Diversity Work for All, (stergaard, Timmermans and Kristinsson, 2011[11]), (Parrotta, Pozzoli and Pytlikova, 2014[12]), (Alesina, Harnoss and Rapoport, 2016[26]), Tolsma, van der Meer and Gesthuizen, 2009[38], (Alesina, Harnoss and Rapoport, 2014[42]), [2] Balestra,C. and L.Fleischer (2018), Diversity statistics in the OECD:How do OECD countries collect data on ethnic, racial and indigenous identity?. Parts of this chapter are based on a background report on the economic impact of diversity, provided by Ceren Ozgen (Marie Sklodowska-Curie Fellow at the Department of Economics and the Institute for Research into Superdiversity (IRiS) at the University of Birmingham). [35] Montalvo,J. and M.Reynal-Querol (2014), Cultural Diversity, Conflict, and Economic Development, in Ginsburgh, Victor A. Throsby,D. The research highlights that social cohesion in Australia is relatively strong; however racial discrimination is a barrier to and destroys social cohesion, peace and harmony. Research in Australia shows that racial minorities, including Indigenous Peoples and migrants from non-European backgrounds, are adversely impacted by racism across diverse domains including the labour market, health, education, sport and the criminal justice system (Anthony & Blagg, 2020; Cunneen, 2006; Mansouri et al., 2012; Priest et al., 2012 (2010[17]) present similar results for the impact of ethnic diversity in boards in the UnitedStates, which is found to have no significant impact on firm performance. 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). We should never underestimate the impact and effect of racial discrimination. 94, pp. [11] stergaard,C., B.Timmermans and K.Kristinsson (2011), Does a Different View Create Something New? First, the diversity is not among just an increased . Importantly, the initial negative effect, whereby diversity was associated with reduced trust, was fully cancelled out by the positive effect of mixing with members of different groups. Table2.1 highlights the main channels proposed in the literature on how diversity could positively or negatively impact outcomes at a firm level or affect societies more broadly. In addition, findings suggest that these economic differences actually lead to lower public goods provision, particularly in countries with weaker democratic structures (Baldwin and Huber, 2010[40]). 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]). In essence, the definition of social impact means any significant or positive changes that solve or at least address social injustice and challenges. 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. Oxfam Australia commissioned Deloitte Access Economics to analyse the economic and social impact an expanded refugee program may have on Australia's economy and society. The Commission is Australias national human rights institution accredited with an A status under the Paris Principles. Looking at regions within 12 EU countries,4 higher immigrant diversity is found to have a positive impact on the productivity and wages of natives. . a 0.35% increase in GDP per year) from elevating employment rates of women, French-born with a migration background, residents of disadvantaged neighbourhoods and people with disabilities to the average employment level (Bon-Maury etal., 2016[47]). due differences in worldviews, discrimination, Trade facilitation and new markets: easier access to markets abroad, better understanding of diverse customer base, new clients, Increased availability of goods and services: e.g. One man whos none too keen on diversity. In doing so, they extract benefits from these interactions. This index accounts both for the heterogeneity of a population as well as the size of different population groups. Racial abuse of an athlete at a football match would be permitted, because it would be unlikely to intimidate that person or incite others to hate him or her on racial grounds. Most of the studies are survey-based and usually focus only on specific, usually large firms. Social Integration. [7] Zierscha, A.M., Gallahera, G., Bauma, F., Bentleya, M., (2011).Responding to racism: Insights on how racism can damage health from an urban study of Australian Aboriginal people. whether employees perceive their workplace as open towards diversity, has a positive impact on the branchs performance. Patent applications (+); Patent grant (+); Non-university patent grants (+), 12 western European countries (170 regions), Product innovation & process innovation (+) & (-), Introduction of a new product or service: (/). 21-40. Similar results are found for US cities (Ottaviano and Peri, 2006[32]). While these estimates are not based on a general equilibrium model, i.e. Carers NSW works with all carers regardless of their age, location, life-stage or circumstances. [4] The report highlighted that experiences of racism and/or discrimination denote a lack of recognition in the community and can disrupt belonging, inclusion and participation. The study developed six key recommendations to enhance social cohesion in Australia one of the six focussed on addressing racism and discrimination. Despite the extensive examination by socialists and theorists there is no universally agreed definition of social cohesion. The Scanlon Foundation Surveys National Report. Finally, the chapter notes ethical reasons for fostering a just and equitable labour market alongside the economic argument for diversity. As a nation we embraced this diversity and recognised the economic and social benefits that come this brings. For process innovation, only diversity in nationality has a significant, negative impact. It Stops with me website, and if you are part of a sporting organisation, club or business and you think they would be interested in supporting the campaign all the details of how to do so and what is involved is on the website. Contrary to the often assumed, direct positive impact of diversity on business performance, research shows that at the firm level, the business case for diversity is not particularly strong. This chapter examines the evidence on the economic impact of diversity, which yields a rather complicated picture. 64, pp. Although it is important to have strategies and campaigns in place to build awareness, understanding and facilitate cultural change, we also need legislation that protects our human rights and fundamental freedoms. Legislation and policies can only go so far. There is indeed evidence that diversity creates mistrust in communities. Demographic-based affinity groups are formed around shared characteristics such as gender, race, ethnicity, or sexual orientation. Diversity is important for several reasons, both in society and in various contexts such as the workplace, education, and communities. These findings point in the same direction as the literature focusing on the firm level, as they suggest that diversity is likely to have a stronger positive impact in high-skilled employment. 85-96. (2008), Cultural diversity and economic performance: Evidence from European regions. Racial discrimination contributes to social and economic disadvantage;[5] likewise, social and economic exclusion can exacerbate experiences of racial discrimination.[6]. [35] Montalvo,J. and M.Reynal-Querol (2014), Cultural Diversity, Conflict, and Economic Development, in Ginsburgh, Victor A. Throsby,D. [50] Verbeek,S. (2012), Do hard diversity policies increase ethnic minority representation? [18] Trax,M., S.Brunow and J.Suedekum (2015), Cultural diversity and plant-level productivity, Regional Science and Urban Economics, Vol. It stops with me campaign and is a good example of the educational and advocacy work of the Commission. [27] Cooke,A. and T.Kemeny (2017), Cities, immigrant diversity, and complex problem solving, [28] Docquier,F. etal. 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. Studies on how diversity affects productivity at the firm-level, using representative data are rare. At the level of US States, they estimate that a 1-percentage point increase in the share of foreign-born STEM college graduates in the overall graduate population boosts patents per capita by 9-18 percent. Since 1945, almost seven million people have migrated to Australia. 35, pp. The other positive outcomes the survey revealed is that 92% of people surveyed said they feel they belong to Australian society. This provision is so broad it is difficult to see any circumstances in public to which the protections would apply. Please select the WEB or READ option instead (if available). [5] Ozgen,C., P.Nijkamp and J.Poot (2012), Immigration and innovation in European regions, in Nijkamp,N., J.Poot and M.Sahin (eds.). What you say matters. [16] Adams,R. and D.Ferreira (2009), Women in the boardroom and their impact on governance and performance, Journal of financial economics, Vol. Research on the UnitedStates and Canada show that white people living in diverse neighbourhoods are more trusting when they regularly talk to their neighbours (Stolle, Soroka and Johnston, 2008[43]). [19] Horwitz,S. and I.Horwitz (2007), The Effects of Team Diversity on Team Outcomes: A Meta-Analytic Review of Team Demography, Journal of Management, Vol. There are a lot of factors that affect a person's socioeconomic status. Other studies show similar positive effects on GDP per capita, however effects are found to be stronger in low-income countries (see for example Bove and Elia (2017[30]). Growth Of Work Opportunities [24] Gonzalez,J. and A.Denisi (2009), Crosslevel effects of demography and diversity climate on organizational attachment and firm effectiveness. [24] Gonzalez,J. and A.Denisi (2009), Crosslevel effects of demography and diversity climate on organizational attachment and firm effectiveness, Journal of Organizational Behavior, Vol. [2] One third (34.8 per cent) of Aboriginal and Torres Strait Islander people live in major cities [3]; 43.8 per cent live in regional areas; 7.7 per cent live in remote areas; and 13.7 . You might recall the incident in which a French woman was abused for singing the Marseilleilles, and an ABC reporter, Jeremy Fernandez was racially abused while taking his daughter to school by bus. Trax, Brunow and Suedekum (2015[18]) show for Germany that migrant diversity has a positive impact on firm productivity, particularly strongly within larger manufacturing plants and less so in service establishments, while the share of migrants, either at the firm level or in the region, has no effect. They harm an individuals freedom to participate as a citizen in the community. Panel data fixed effects models, which often help accounting for unobserved heterogeneity, do not work for firm-level studies due to the small within-firm variation. Thank you to the Affinity Foundation for the invitation to be here tonight for the 2014 Iftar dinner and to celebrate Ramadan. 2-17. Diversity is important in today's world because it helps us learn from each other and understand that everyone is unique and special in their own way. Those that come to the Commission are conciliated at no cost to those involved. For France, there is also evidence that biased managers have a negative impact on how ethnic minorities perform on the job. Neighborhood Diversity, Interpersonal Trust and the Mediating Effect of Social Interactions, Political Studies, Vol. 291-309. University of Birmingham provides funding as a founding partner of The Conversation UK. They find that more gender equal boards have a beneficial effect in companies where shareholder rights are weak and more monitoring is thus beneficial, while the impact is negative for companies with strong shareholder rights. (2018), Trust and its determinants: Evidence from the Trustlab experiment, OECD Statistics Working Papers, No. The campaign now has support from organisations across business, sport, education, local government and civil society. [3] Chellaraj,G., K.Maskus and A.Mattoo (2008), The contribution of international graduate students to US innovation. A study on 195 countries shows that the diversity of immigrants is positively associated with economic prosperity, particularly so for skilled migrants in high-income countries; a one percentage point increase of the diversity of skilled migrants increases long-run economic output, measured by GDP per capita, by 2% (Alesina, Harnoss and Rapoport, 2016[26]). 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%). 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. [2] Balestra,C. and L.Fleischer (2018), Diversity statistics in the OECD:How do OECD countries collect data on ethnic, racial and indigenous identity?, OECD Statistics Working Papers, No. 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. Thank you for the warm welcome. The majority of these studies has focused on Western European and North American countries and looks at the micro level impact, i.e. He argues that the strength of Australia's multicultural experience has been its nation-building character. They find that diversity in education and nationality have a positive impact on product innovation for a firm. That public awareness campaign is a central part of the National Anti-Racism Strategy that the Commission leads. They also show that, by focusing only on the short term, we may draw an inaccurate, pessimistic conclusion about the impact of diversity. 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.
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