Posted by: Richie Bernardo

America is undergoing an extreme makeover, thanks to rapid demographic diversification. By 2050, you won’t even recognize her. But America’s transformation is more than skin-deep — it’s economic, too. Not only have waves of immigration changed the face of the nation, they’ve also ushered in fresh perspectives, skills and technologies to help the U.S. develop a strong adaptability to change.

Economies generally fare better when they openly embrace and capitalize on new ideas. Conversely, those relying on old ways and specialized industries tend to be more susceptible to the negative effects of market volatility.

Culminating our diversity study series, this final installment combines household diversity and religious diversity with our previous reports on socioeconomic diversity, cultural diversity and economic diversity. WalletHub’s analysts tallied the scores across the five major diversity categories for 501 of the largest cities in order to determine the most kaleidoscopic places in America. Read on for our findings, expert commentary from a panel of researchers and a full description of our methodology.

1. Main Findings
2. Detailed Findings
3. Rankings by City Size
4. Ask the Experts
5. Methodology

Main Findings

  Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/12690/geochart-overalldiversity.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2pbABoq;  

Overall Rank	City	Total Score	‘Social Class Diversity’ Rank	‘Ethno-Racial Diversity’ Rank	‘Economic Diversity’ Rank	‘Household Diversity’ Rank
310	Parma, OH	36.58	242	310	161	176
311	Birmingham, AL	35.74	305	304	173	103
312	Livonia, MI	34.57	90	312	231	267
313	Detroit, MI	42.25	311	302	167	161

 

Detailed Findings

City	‘Income Diversity’ Rank	‘Educational-Attainment Diversity’ Rank	‘Racial & Ethnic Diversity’ Rank	‘Language Diversity’ Rank	‘Region-of-Birth Diversity’ Rank	‘Industry Diversity’ Rank	‘Occupational Diversity’ Rank	‘Worker-Class Diversity’ Rank	‘Marital-Status Diversity’ Rank	‘Age Diversity’ Rank	‘Household-Type Diversity’ Rank	‘Household-Size Diversity’ Rank
Kenosha, WI	153	276	212	N/A	169	275	69	249	114	146	69	59
Racine, WI	251	215	70	N/A	243	193	31	281	108	248	19	44
Appleton, WI	95	206	280	N/A	263	155	108	300	186	174	200	135
Waukesha, WI	98	199	253	N/A	267	199	187	273	171	188	184	115
Eau Claire, WI	233	250	304	N/A	278	278	121	169	252	80	270	79
Oshkosh, WI	217	286	308	N/A	301	262	45	186	72	10	189	131

Rankings by City Size

Rank	Large City Name (Score)	Rank	Midsize City Name (Score)	Rank	Small City Name (Score)
		138	Spokane, WA (64.36)
		139	Sioux Falls, SD (57.34)
		140	Birmingham, AL (35.74)

Ask the Experts

Many local economies use their diverse demographic compositions to their advantage, duplicating the country’s economic success as a whole. But diversity also has its drawbacks. For insight into the advantages and disadvantages of diversity as well as advice on how to channel different demographic characteristics toward economic growth, we asked a panel of experts to share their thoughts on the following key questions:

1. What are the pros and cons of living and working in a diverse city?
2. Is there a relationship between diversity and economic growth in cities?
3. What can local policy makers do to harness the diversity in their cities to spur innovation?
4. Which types of diversity are good or bad for cities?

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• Jacqueline Battalora Professor in the Department of Sociology, Anthropology and Criminal Justice at Saint Xavier University
• Bennett Capers Stanley A. August Professor of Law at Brooklyn Law School
• Susan Stanford Friedman Virginia Woolf Professor of English and Gender & Women's Studies at University of Wisconsin-Madison
• Derek W. Black Professor of Law at University of South Carolina School of Law
• Arindam Mandal Associate Professor of Economics at Siena College
• Deborah N. Archer Professor of Law, Co-Director of the Impact Center for Public Interest Law, and Director of the Racial Justice Project at New York Law School
• Susan M. Bosco Professor of Management in the Mario J. Gabelli School of Business at Roger Williams University

Jacqueline Battalora Professor in the Department of Sociology, Anthropology and Criminal Justice at Saint Xavier University What are the pros and cons of living and working in a diverse city? Pros: A culturally diverse city offers a vast richness of cultural & ethnic diversity, a wide spectrum of economic classes and neighborhoods. When this diversity is explored, tasted, experienced and understood, lives are both challenged and enriched and perspective is stretched. A diverse workplace where workers are empowered to contribute perspective and critique can be a responsive and creative space. The cons of living and working in a diverse city include the tensions that can arise when cultures clash and the paths to understanding are not readily seen, when access to limited resources is not equitable, and when too many forget our collective humanity. Is there a relationship between diversity and economic growth in cities? This depends largely on the economic resources of the various populations. When significant numbers are struggling economically, there are strains on services and government and this can likewise strain economic growth. Where people across diverse communities can secure employment that provides a living wage and opportunities for advancement, there is greater potential for economic growth. There seems to be a strong correlation between state support for education and economic growth within its cities and towns. What can local policy makers do to harness the diversity in their cities to spur innovation? If a different perspective, a new way of seeing something, an alternative approach spur innovation, there can be little doubt that a city's diversity can be a rich resource of innovation. Policy makers can support the education of a workforce that values diversity. Policy makers can listen, learn and invite diverse communities into the decision-making and workings of government. Educators can embrace diversity to enhance curriculum, supplement or correct content (there is a long history of teaching very partial histories that often enhance the view of the US and diminish cultures from other regions of the globe) and practice tolerance at a minimum or understanding and appreciation ideally. Policy makers can develop and nurture relationships within diverse communities to help ensure communication flow, understanding of desires, constraints and challenges and to build trust. Bennett Capers Stanley A. August Professor of Law at Brooklyn Law School What are the pros and cons of living and working in a diverse city? So much depends on what one considers "a diverse city." Living in city that is racially diverse in terms of numbers, but racially segregated in fact, isn't really living in a diverse city. As far as living in a city where there is true diversity of all kinds -- racial, ethnic, religious, class, political, etc. -- the pros are many. We are increasingly living in a more diverse world, and indeed a more international world. Exposure to people from different backgrounds early is itself an asset that will likely become more valuable as the world becomes more diverse and interconnected. Indeed, the pros remind me of the arguments made by high-ranking retired officers in their amicus brief in the affirmative action case Grutter v. Michigan a few years back. The officers supported Michigan University's efforts to ensure diversity at the school, largely on the argument that the world is becoming more diverse and preparing everyone for that world is a net positive. Of course, if one prefers to lead a life without exposure to difference -- from different ideas to different languages to different foods -- then living in a diversity city may not be your cup of tea. But if you enjoy the idea of being exposed to different things, and providing your children that same exposure, then you may be tapping into an asset that will undoubtedly prove valuable. Which types of diversity are good or bad for cities? This relates to my prior answer. Few people benefit when a city, diverse in numbers, is in fact highly segregated or highly stratified. Much of this has to do with city planning and design. If the city is structured so that, for example, poor Latinos all live in one area, and middle class whites all live in another, then the benefits of diversity will largely be lost, and the disadvantages (class resentment for example, and increased crime for another) may exceed any advantages. This is likely to be especially true where schools are segregated along lines of race or class, where police forces and city officials don't reflect the diversity of the city, and where there is little room for class or residential mobility. But even cities that have as their starting point class and residential segregation can do much to increase social diversity and foster class and social mobility in a way that benefits the city, increases the safety for everyone, and makes the city more inviting to businesses. For example, a public park that can be used and is used by everyone in a city can do much to address an "us versus them" mentality. Of course, the best type of diversity is the kind where so many people from different backgrounds attend school together, work together, live together, and argue politics together, that diversity itself is taken for granted. I live in one of those cities now: New York City. Susan Stanford Friedman Virginia Woolf Professor of English and Gender & Women's Studies at University of Wisconsin-Madison Is there a relationship between diversity and economic growth in cities? Yes, diversity of population is vital to the future of the US, of Wisconsin, and the city of Madison, WI. The world is ever more interconnected and people from different cultures and backgrounds need even more exposure to each other to foster greater collaborations in economic, political, cultural, and family life. Derek W. Black Professor of Law at University of South Carolina School of Law Is there a relationship between diversity and economic growth in cities? Data bears out that our most diverse cities are also our most economically productive. What can local policy makers do to harness the diversity in their cities to spur innovation? Adopt pro-integration school assignment policies and promote housing integration as well. Which types of diversity are good or bad for cities? Racial, ethnic, and socio-economic diversity are particularly good for cities. Arindam Mandal Associate Professor of Economics at Siena College What are the pros and cons of living and working in a diverse city? This depends on the definition of a “Diverse City”. Cities that are diverse in multiple dimensions – race, ethnicity, identity, nationality, politics – have much to add to one’s experience. However, all depend on economic and social mobility enjoyed by these groups. In terms of numbers, we can have highly diverse cities, but if there are limited opportunities for diverse groups to share their experiences, diversity itself will not translate into benefit for an individual. Rather it might foster resentment and tensions, and ultimately would foster polarization. On the other hand, cities that are “truly” diverse can be a powerhouse in promoting wider good of the community. It will attract talents that can further enrich the diverse experiences. Attracting talents by providing the right environment becomes more important at the time when the United States is experiencing unprecedented movement of people within the country and from abroad. Is there a relationship between diversity and economic growth in cities? If a city can foster the right mix of economic and social mobility for majority of its residents, then it will definitely foster economic growth. After all, right institutions are necessary condition for economic growth and prosperity. Cities that can ensure harmony among its diverse residents can better leverage the power of diversity by generating the best for its communities. What can local policy makers do to harness the diversity in their cities to spur innovation? Education is the key to individual and community success. It is important that policy makers first ensure that all its residents have access to quality education. This can go a long way in converging the gap among various groups in the society, and hence can build a stronger community based on cooperation rather than resentment. Policy makers also need to ensure that people who are moving into the city have access to basics such as affordable housing and health care. Finally, policy makers need to work in tandem with employers in delivering the best to its residents. Which types of diversity are good or bad for cities? It is hard to distinguish diversity based on quality. Communities that can work together and can transcend boundaries are always good because they will eventually foster innovation and greater welfare. Deborah N. Archer Professor of Law, Co-Director of the Impact Center for Public Interest Law, and Director of the Racial Justice Project at New York Law School What are the pros and cons of living and working in a diverse city? The strongest cities have diverse economies - they are not reliant on one sector. They have strong competitive businesses. And they have a labor pool that those businesses want to hire. Most major companies today understand that a diverse workforce is a business necessity, with benefits to the work environment, productivity, quality, and profitability. Cities with a diverse population can attract diverse businesses. It also means talented immigrants will want to live in that city. It increases chances that your children will have an education that is enriched by diverse perspectives and experiences, and they will learn interpersonal skills that they will need to be competitive in our increasingly global economy. ‪But diversity is only an opportunity. Having a diverse city where people with different backgrounds have limited opportunities to interact certainly limits the opportunity to experience the benefits of diversity. ‪I do not think there are any cons to diversity, but there are certainly challenges. Diversity without integration risks creating competing communities that see themselves only in conflict. So cities have to work to diversify schools, neighborhoods, and businesses. What can local policy makers do to harness the diversity in their cities to spur innovation? Cities need to actually integrate schools and neighborhoods, create places where diverse people can come together. Cities must also make sure that diverse, and often traditionally underserved, communities have access to capital and opportunity. For example, robust MWBE contracting programs allow cities to use their purchasing power to make sure that the city can actually benefit from the talents of the diverse communities that live there. Susan M. Bosco Professor of Management in the Mario J. Gabelli School of Business at Roger Williams University What are the pros and cons of living and working in a diverse city? The pros of living in a diverse city are that you have access to people with a variety of backgrounds, perspectives and experiences. This variety enables one to get a glimpse of the behaviors and values that are practiced outside of one's own limited experience. It is not only interesting, but helpful to gain these perspectives as we are all living in a much broader world. In addition, our experiences and knowledge of other societies becomes more complex and reflective of the world. On the challenging side, one is now forced to accommodate to the language limitations of others as well as their different behaviors. One may find that the mass transit commute, for example, is delayed as those who are not familiar with these systems try to learn them. One is also confronted in a very real way with beliefs that may differ from those we hold. It can be hard to make oneself open to hearing others' opinions without judging too quickly. Human nature is such that we tend to be more comfortable with people we perceive to be like ourselves. So being with people who are different can be stressful just for that reason. Is there a relationship between diversity and economic growth in cities? If seems that in areas of urban revitalization, small businesses appear, some of which will be successful. When cities are abandoned by their "traditional" populations, these places do decline in economic activity as that majority population is no longer living there and spending their incomes. Once these cities are able to welcome and support new populations who feel comfortable in a more heterogeneous environment, they become hubs for new economic activity generated by this different influx of people. What can local policy makers do to harness the diversity in their cities to spur innovation? Creating enterprise zones with benefits in taxation, for example, have been successful in promoting innovation in many urban areas, particularly smaller ones. There is also a need to support programs that will help innovators to learn the basics of beginning and operating a business in the U.S. It can be very challenging to try to not only start a business, but to try to learn the navigation needed to meet the standards legally and economically. Finally, a review of zoning for such areas may be in order as well. Which types of diversity are good or bad for cities? I can't really think of a situation which is bad for cities in this regard. As long as there is a mix of people who have some sense of community and social support, it seems like it would be a positive phenomenon in any case.

Methodology

In order to determine the most diverse cities in America, WalletHub’s analysts compared 501 of the most populated cities — limiting each state to no more than 10 cities each — across five key dimensions: 1) Socioeconomic Diversity, 2) Cultural Diversity, 3) Economic Diversity, 4) Household Diversity and 5) Religious Diversity.

We conducted our analysis using the Herfindahl-Hirschman Index method, which is a commonly accepted measure of market concentration that also works effectively as a general-purpose measure of diversity (e.g., race/ethnicity, occupations, languages, nationalities).

Our sample considers only the city proper in each case and excludes cities in the surrounding metro area. Each city was categorized according to the following population-size guidelines:

• Large cities: More than 300,000 residents
• Middsize cities: 100,000 to 300,000 residents
• Small cities: Fewer than 100,000 residents

We then evaluated the five dimensions using 13 relevant metrics, which are listed below with their corresponding weights and subcomponents. Each metric was graded on a 100-point scale, with a score of 100 representing the most diversity.

Lastly, we calculated the total score for each city based on its weighted average across all metrics and used the resulting scores to construct our final ranking.

1. Socioeconomic Diversity - Total Points: 20
   1. Household-Income Diversity: Weight = Double Weight(~13.30 Points)
      • $34,999 or Less
      • $35,000 - $49,999
      • $50,000 - $74,999
      • $75,000 - $99,999
      • $100,000 - $149,999
      • $150,000 or more
   2. Educational-Attainment Diversity: Weight = Full Weight (~4.70 Points)
      • Without a high school diploma
      • High school diploma and perhaps some college or an associate’s degree
      • Bachelor’s degree
      • Graduate or professional degree

    

2. Cultural Diversity - Total Points: 20
   1. Racial & Ethnic Diversity: Weight = Triple Weight (~10.00 Points)
      • Hispanic or Latino
      • White (not Hispanic or Latino)
      • Black or African American (not Hispanic or Latino)
      • Asian (not Hispanic or Latino)
      • All Others (American Indian and Alaska Native, Native Hawaiian and Other Pacific Islander, some other race alone, two or more races and not Hispanic or Latino)
   2. Linguistic Diversity: Weight = Double Weight (~6.70 Points)
      • English
      • Spanish
      • Other Indo-European languages
      • Asian and Pacific Islander languages
      • Other languages
   3. Birthplace Diversity: Weight = Full Weight (~3.30 Points)
      • Native
      • Europe
      • Asia
      • Africa
      • Oceania
      • Latin America
      • Northern America (other than native)

    

3. Economic Diversity - Total Points: 20
   1. Industry Diversity: Weight = Triple Weight (~12.00 Points)Note: Considers the civilian employed population aged 16 and older
      • Agriculture, Forestry, Fishing and Hunting, and Mining
      • Construction
      • Manufacturing
      • Wholesale Trade
      • Retail Trade
      • Transportation and Warehousing, and Utilities
      • Information
      • Finance and Insurance, and Real Estate and Rental and Leasing
      • Professional, Scientific, and Management, and Administrative and Waste-Management Services
      • Educational Services, and Health Care and Social Assistance
      • Arts, Entertainment, and Recreation, and Accommodation and Food Services
      • Other Services (excluding Public Administration)
      • Public Administration
   2. Occupational Diversity: Weight = Full Weight (~4.00 Points)Note: Considers the civilian employed population aged 16 and older
      • Management, Business, Science, and Arts Occupations
      • Service Occupations
      • Sales and Office Occupations
      • Natural-Resources, Construction, and Maintenance Occupations
      • Production, Transportation, and Material Moving Occupations
   3. Worker-Class Diversity: Weight = Full Weight (~4.00 Points)Note: Considers the civilian employed population aged 16 and older
      • Private Wage and Salary Workers
      • Government Workers
      • Self-Employed Workers (operating their own, unincorporated businesses)Note: Includes “people who worked for profit or fees in their own unincorporated business, professional practice, or trade or who operated a farm,” according to the U.S. Census Bureau.
      • Unpaid Family Workers

    

4. Household Diversity - Total Points: 20
   1. Marital-Status Diversity: Weight = Full Weight (~5.00 Points)
      • Never Married
      • Married (excluding separated couples)
      • Divorced
      • Separated
      • Widowed
   2. Age Diversity: Weight = Full Weight (~5.00 Points)
      • Aged 19 and younger
      • Aged 20-24
      • Aged 25-34
      • Aged 35-44
      • Aged 45-54
      • Aged 55-64
      • Aged 65 and older
   3. Household-Type Diversity: Weight = Full Weight (~5.00 Points)
      • Family households with married couples
      • Male-headed family households (no spouse present)
      • Female-headed family households (no spouse present)
      • Nonfamily households
   4. Household Size Diversity: Weight = Full Weight (~5.00 Points)
      • Two-person family households
      • Three-person family households
      • Four-person family households
      • Five-person family Households
      • Six-person family Households
      • Seven-person or more family households
      • One-person nonfamily households
      • Two-person nonfamily households
      • Three-person nonfamily households
      • Four-person nonfamily households
      • Five-person nonfamily households
      • Six-person nonfamily households
      • Seven-person or more nonfamily households

    

5. Religious Diversity - Total Points: 20
   • Evangelical Protestant
   • Mainline Protestant
   • Black Protestant
   • Catholic
   • Orthodox Christian
   • Muslim
   • Buddhist
   • Hindu
   • Unaffiliated
   • Other Religions

 

Sources: Data used to create this ranking were collected from the U.S. Census Bureau and ARDA.

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