Archive for the 'migration' Category

‘After Florida’ wins a prize

December 21, 2016

I’m delighted (and honestly, surprised) to have won the 2016 Jim Lewis Prize for my paper on the economics of diversity – After Florida – which is out in European Urban and Regional Studies. The prize is awarded for the most innovative paper published in EURS the previous year.


You can read the whole paper here. To give you a flavour, the abstract is below.

In recent years, most European countries have experienced substantial demographic changes and rising cultural diversity. Understanding the social and economic impacts of these shifts is a major challenge for policymakers. Richard Florida’s ideas have provided a popular – and pervasive – framework for doing so. This paper assesses Florida’s legacy and sets out a ‘post-Florida’ framework for ‘technology, talent and tolerance’ research. The paper first traces the development of Florida’s ideas. ‘Florida 1.0’, encapsulated by the Three Ts framework, has performed badly in practice. There are problems in bringing causality to the fundamental relationships, and in consistently replicating the results in other countries. ‘Florida 2.0’, though suggests that Creative Class metrics have value as alternative measures of human capital. This creates space for a post-Florida agenda based on economic microfoundations.

I argue that the growing body of ‘economics of diversity’ research meets these conditions, and review theory and empirics. Urban ‘diversity shocks’ shift the size and composition of populations and workforces, with impacts operating via labour markets, and through wider production and consumption networks. While short-term labour market effects are small, over time low-value industrial sectors may become migrant-dependent. Diversity may help raise productivity and wages through innovation, entrepreneurship, market access and trade channels. Bigger, more diverse cities help generate hybridised goods and services, but may also raise local costs through crowding. All of this presents new challenges for policymakers, who need to manage diversity’s net effects, and address both economic costs and benefits.


The paper has its origins in the intro chapter to my PHD thesis. If you fancy wading deeper in, that’s here.

New article: ethnic diversity, firm performance and cities

August 8, 2016

Paul Klee, Harmony of Northern Fauna, 1927

I’ve got a new paper published in Environment and Planning A. There’s an open access version here.

The research looks at the links between ethnic diversity in firms’ top teams (owners, partners and directors) and the performance of those firms (specifically, how much revenue they make).

I also look at how those linkages  vary across different types of firms, and how different types of urban environment may help or may not.

There’s now a decent diversity literature (see this academic review, or this great Andy Haldane speech). But we know much less about these gnarlier issues.


I find positive diversity-links – but only for certain kinds of companies. The strongest links are for a group of large,  knowledge-intensive businesses who comprise about 16% of my sample. The role of cities is also complex. For this first group, being in  London amplifies the diversity ‘effects’.

But for a second, smaller group of younger companies, diversity channels seem to be swamped by London’s higher costs and greater competition. These firms perform better when in smaller, cheaper cities like Manchester or Birmingham.  In turn, that suggests policies to promote ethnic diversity in firms need to be quite carefully tailored to industry and local conditions.


Here’s the abstract:

A growing literature examines how ethnic diversity influences economic outcomes in cities and inside firms. However, firm–city interactions remain more or less unexplored. Ethnic diversity may help firm performance by introducing a wider range of ideas,  improving scrutiny or improving international market access. Urban locations may amplify in-firm processes via agglomeration economies, externalities from urban demography or both. These firm–city effects may be more beneficial for knowledge-intensive firms, and  for young firms with a greater dependence on their environment. However, firm–city interactions could be negative for cost and  competition-sensitive younger firms, or for firms operating in poorer, segregated urban markets. I deploy English cross-sectional data to explore these issues within firms’ ‘top teams’, using latent class analysis to tackle firm-level heterogeneity. I find positive diversity–performance links for larger, knowledge-intensive firms, and positive firm–city interactions both for larger, knowledge-intensive firms in London and for younger, smaller firms in second-tier metros.

Read the article here. Or here’s the ungated version.

RGS talk on migration

May 13, 2016

(c) 2016 RGS

A late plug for this. I did a panel event on ‘Europe’s Migration Crisis’ with the Royal Geographical Society a few weeks back, alongside Heaven Crawley, Madeleine Sumption and Christina Boswell. The Guardian’s estimable David Walker chaired it.

I gave an overview of the local economics of migration, focusing on the recent UK experience, and drawing on some of my work – as well as borrowing a couple of nice maps from the Migration Observatory.


Here’s the summary I sent the organisers:

My talk will look at migration impacts at the local level, especially in cities. I’ll argue that we should look both at people flows, but also at the diversity that migration brings. Today’s public conversation about migration is focused on jobs, housing and public services. That’s understandable, and there are some real concerns here.

I also want to shift the conversation to cover migration as an influence on long term economic growth, with impacts on productivity, innovation, entrepreneurship and trade. Skilled migrants (from inside and outside the EU) are central to this, and the evidence we have suggests that there are positive effects of these groups on economic outcomes policymakers should care about. We need to know much more about how these channels work, of course. But national government and cities can start – now – to adjust policy to make more of these opportunities. 

There’s a nice write-up of the event on the RGS blog. If you want more detail, my slides are here.

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