DOCUMENT DE TRAVAIL N° 605 DIVERSITY AND EMPLOYMENT PROSPECTS: NEIGHBORS MATTER! Camille Hémet and Clément Malgouyres October 2016 DIRECTION GÉNÉRALE DES ÉTUDES ET DES RELATIONS INTERNATIONALES DIRECTION GÉNÉRALE DES ÉTUDES ET DES RELATIONS INTERNATIONALES DIVERSITY AND EMPLOYMENT PROSPECTS: NEIGHBORS MATTER! Camille Hémet and Clément Malgouyres October 2016 Les Documents de travail reflètent les idées personnelles de leurs auteurs et n'expriment pas nécessairement la position de la Banque de France. Ce document est disponible sur le site internet de la Banque de France « www.banque-france.fr ». Working Papers reflect the opinions of the authors and do not necessarily express the views of the Banque de France. This document is available on the Banque de France Website “www.banque-france.fr”. Diversity and Employment Prospects: Neighbors Matter! Camille H´emet ∗ Cl´ement Malgouyres y ∗Ecole´ Normale Sup´erieure(ENS), Paris School of Economics (PSE) Contact:
[email protected], Webpage: http://sites.google.com/site/camillehemet/ yBanque de France Contact:
[email protected] We are grateful to Yann Algan, Bruno Decreuse, Nina Guyon, Jordi Jofre Monseny, Alan Manning, Thierry Mayer, Fabien Moizeau, Hillel Rapoport, Matthieu Solignac, Maxime To, Javier V´asquezGrenno and Yves Zenou for insightful comments and discussion. We are deeply indebted to two anonymous referees whose comments helped us substantially improve the paper. We also thank participants at the following events for their remarks: Workshop on Cultural Diversity (Paris 1 Panth´eon-Sorbonne), 10th UEA meeting, 2014 SOLE meeting, IEB seminar, National University of Singapore seminar, PSE Applied Economics lunch seminar, 62nd annual meeting of the French Economic Association (AFSE) and WZB workshop on Ethnic Diversity.