Economic Value of Cultural Diversity: Evidence from U.S. Cities

Using data on wages and rents in different U.S. cities, the authors assess the amenity effects on production and consumption of cultural diversity as
measured by diversity of countries of birth of city residents. Results indicate that U.S.-born citizens living in metropolitan areas where the share of
foreign-born increased between 1970 and 1990 have experienced a significant average increase in their wage and in the rental price of their housing.