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The Social Effects of Ethnic Diversity at the Local Level: A Natural Experiment with Exogenous Residential Allocation

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  • Yann Algan

    ()
    (Department of Economics, Sciences Po)

  • Camille Hémet

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS and Sciences Po)

  • David Laitin

    ()
    (Department of Political Science, Stanford University)

Abstract

This paper demonstrates the effects of ethnic diversity on social relationships and the quality of public spaces at a very finite neighborhood level. We use detailed block level data on diversity and housing quality from a representative survey on housing in France. We show how and to what extent diversity within a neighborhood can directly affect household well-being and the quality of the common spaces, whereas the previous literature looks at more aggregate outcomes through voting channels. Our identification strategy relies on the exogeneity of public housing allocations with respect to ethnic characteristics in France, to address the bias due to endogenous residential sorting. Diversity is shown to have a negative effect on the quality of local public goods, either due to vandalism, not deterred by other-regarding preferences and social policing, or due to collective action failure to ensure effective property management. However, we find that diversity has no robust effect on public safety at a local level and, if anything, is more related to social anomie.

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File URL: http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2013_-_nr_38.pdf
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Bibliographic Info

Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1338.

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Length: 61 pages
Date of creation: 10 Jul 2013
Date of revision: 10 Jul 2013
Handle: RePEc:aim:wpaimx:1338

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Web page: http://www.amse-aixmarseille.fr/en
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Keywords: diversity; neighborhood effects; living conditions; public housing;

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References

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  1. Matz Dahlberg & Karin Edmark & Heléne Lundqvist, 2011. "Ethnic Diversity and Preferences for Redistribution," Working Papers 2011/2, Institut d'Economia de Barcelona (IEB).
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  3. Alesina, Alberto & Devleeschauwer, Arnaud & Wacziarg, Romain & Kurlat, Sergio & Easterly, William, 2003. "Fractionalization," Scholarly Articles 4553003, Harvard University Department of Economics.
  4. Patrick Bayer & Stephen Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," NBER Working Papers 11019, National Bureau of Economic Research, Inc.
  5. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  6. Roland G. Fryer & Steven D. Levitt, 2003. "The Causes and Consequences of Distinctively Black Names," NBER Working Papers 9938, National Bureau of Economic Research, Inc.
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  14. Algan, Yann & Mayer, Thierry & Thoenig, Mathias, 2013. "The Economic Incentives of Cultural Transmission: Spatial Evidence from Naming Patterns across France," CEPR Discussion Papers 9416, C.E.P.R. Discussion Papers.
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  16. Erzo F.P. Luttmer, 1999. "Group Loyalty and the Taste for Redistribution," Working Papers 9902, Harris School of Public Policy Studies, University of Chicago.
  17. Miguel, Edward & Gugerty, Mary Kay, 2005. "Ethnic diversity, social sanctions, and public goods in Kenya," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2325-2368, December.
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Cited by:
  1. Adida, Claire L. & Laitin, David D. & Valfort, Marie-Anne, 2012. "Muslims in France: Identifying a Discriminatory Equilibrium," IZA Discussion Papers 6953, Institute for the Study of Labor (IZA).
  2. Xu, Guo, 2013. "Development through Empowerment: Delivering Effective Public Services – a Literature Review," ADB Economics Working Paper Series 382, Asian Development Bank.
  3. Matthew Collin, 2013. "Tribe or title? Ethnic enclaves and the demand for formal land tenure in a Tanzanian slum," CSAE Working Paper Series 2013-12, Centre for the Study of African Economies, University of Oxford.
  4. Claire L. Adida & David D. Laitin & Marie-Anne Valfort, 2014. "Muslims in France: identifying a discriminatory equilibrium," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00977076, HAL.

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