From Friends to Foes: National Identity and Collaboration in Diverse Teams Nadzeya Laurentsyeva (LMU Munich) Discussion Paper No. 226 December 18, 2019 Collaborative Research Center Transregio 190 | www.rationality-and-competition.de Ludwig-Maximilians-Universität München | Humboldt-Universität zu Berlin Spokesperson: Prof. Dr. Klaus M. Schmidt, University of Munich, 80539 Munich, Germany +49 (89) 2180 3405 |
[email protected] From Friends to Foes: National Identity and Collaboration in Diverse Teams a Nadzeya Laurentsyevab December 15, 2019 This project studies collaboration in highly skilled, nationally diverse teams. An unexpected international political conflict makes national diversity more salient among existing and potential team members. I exploit this natural experiment to quantify the role of social, identity-driven, costs for performance and formation of diverse teams. Using microdata from GitHub, the world’s largest hosting platform for software projects, I estimate the causal impacts of a political conflict that burst out between Russia and Ukraine in 2014. I find that the conflict strongly reduced online cooperation between Russian and Ukrainian programmers. The conflict lowered the likelihood that Ukrainian and Russian programmers work in the same team and led to the performance decline of existing joint projects. I provide evidence that the observed e↵ects were not driven by economic considerations. Rather, the conflict activated national identities and shifted programmers’ taste for teammates and projects. My results highlight the role of identity- driven concerns that can distort existing and prevent future collaborations, otherwise profitable from an economic perspective. JEL classification: D22, D74, F23, F51, J71 Keywords: Teams, Diversity, Conflict, National identity, Open source aI thank Michele Battisti, Florian Englmaier, Thomas Fackler, Yvonne Giesing, participants of COPE, EEA, SIOE, Ohlstadt conferences, as well as several research seminars in Munich for helpful comments and suggestions.