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Diversity and Public Goods: a Natural Experiment with Exogeneous Residential Allocation

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  • Algan, Yann
  • Hémet, Camille
  • Laitin, David

Abstract

This paper demonstrates the effects of ethnic and religious diversity on the quality of public spaces. Its identification strategy relies on the exogeneity of public housing allocations in France, and thereby eliminates the bias from endogenous sorting. The paper uses micro evidence of social interactions within housing blocks from the representative French Housing survey, which allows for a detailed identification of the channels through which diversity operates. Differentiating among three channels of public goods provision, the paper finds that heterogeneity in the housing block leads to low levels of sanctions for anti-social behavior and low levels of collective action to improve housing conditions, but no losses in public safety.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8621.

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Date of creation: Oct 2011
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Handle: RePEc:cpr:ceprdp:8621

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Keywords: Discrimination; Fractionalization; Public Good;

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References

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  1. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2000. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," NBER Working Papers 7973, National Bureau of Economic Research, Inc.
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    • Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2003. "Fractionalization," NBER Working Papers 9411, National Bureau of Economic Research, Inc.
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Cited by:
  1. 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.
  2. 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).
  3. 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.
  4. Xu, Guo, 2013. "Development through Empowerment: Delivering Effective Public Services – a Literature Review," ADB Economics Working Paper Series 382, Asian Development Bank.

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