Migrant diversity and team performance in a high-skilled labour market

From a theoretical point of view, the link between workplace diversity and performance in a high-skilled context is ambiguous. Likewise, empirical research at the firm or plant level finds inconclusive and context- specific results. Using a detailed database that covers all the 3,999 matches played by Italian Serie A teams (firms) over a 10-season period, our results reveal a substantial and robust negative effect of fractionalization on performance, whereas no effect is found for polarization. This article also highlights how the negative effect of fractionalization depends on the nature of the tasks to be completed, the wealth of the teams and the level of workers' experience. This work reveals some myopia in hiring practices and suggests that firms should make better decisions in choosing the optimal mix of workers.