"Recent years have seen a tendency towards larger migration flows between many countries. Due to this development the population in the most developed countries in particular is growing increasingly diverse. People with very different cultural backgrounds are living and working together. The social, political and economic implications of this situation are far-reaching, complicated and not completely understood. This paper addresses an important aspect of these implications by looking at the effects of cultural diversity on the labour market. In principle, negative effects can arise from communication problems between people of different cultural backgrounds, from hidden discrimination and even from open clashes. On the other hand, positive effects are possible, since workers from different cultures and nations may possess complementary skills and problem-solving abilities. The intensive interaction of people from different backgrounds can generate ideas and solutions that would not have been developed in culturally homogeneous environments."