The impact of cultural diversity on economic outcomes has become a topic of intensive research in economics. In the recent book by Victor Ginsburgh and Shlomo Weber “How Many Languages Do We Need? Economics of Linguistic Diversity,” Princeton University Press, we focus on linguistic diversity as one of the important aspects of cultural heterogeneity. In our research we rely on measurement of diversity and utilize notions of linguistic distances between various languages. We then analyze the impact of linguistic diversity on trade, migration, and earnings.