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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. Bruno Decreuse & Benoît Schmutz & Alain Trannoy & Pierre-Philippe Combes, 2011. "The neighbor is king: Customer discrimination in the housing market," 2011 Meeting Papers 1187, Society for Economic Dynamics.
  2. Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank.
  3. Rachel Glennerster & Edward Miguel & Alexander Rothenberg, 2010. "Collective Action in Diverse Sierra Leone Communities," NBER Working Papers 16196, National Bureau of Economic Research, Inc.
  4. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving To Opportunity In Boston: Early Results Of A Randomized Mobility Experiment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(2), pages 607-654, May.
  5. Dahlberg, Matz & Edmark, Karin & Lundqvist, Heléne, 2011. "Ethnic Diversity and Preferences for Redistribution," Working Paper Series, Research Institute of Industrial Economics 860, Research Institute of Industrial Economics.
  6. 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.
  7. Alberto Alesina & Eliana La Ferrara, . "Participation in Heterogeneous Communities," Working Papers 151, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  8. Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, Springer, vol. 8(2), pages 155-94, June.
  9. Erzo F.P. Luttmer, 1999. "Group Loyalty and the Taste for Redistribution," Working Papers 9902, Harris School of Public Policy Studies, University of Chicago.
  10. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1203-50, November.
  11. Dominique Goux & Eric Maurin, 2006. "Close neighbours matter: neighbourhood effects on early performance at school," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19412, London School of Economics and Political Science, LSE Library.
  12. Anne-Célia Disdier & Keith Head & Thierry Mayer, 2006. "Exposure to foreign media and changes in cultural traits: Evidence from naming patterns in France," Development Working Papers 213, Centro Studi Luca d\'Agliano, University of Milano.
  13. Alesina, Alberto F & Zhuravskaya, Ekaterina, 2008. "Segregation and the Quality of Government in a Cross-Section of Countries," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6943, C.E.P.R. Discussion Papers.
  14. Giorgio Topa & Stephen Ross & Patrick Bayer, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 05-23, Center for Economic Studies, U.S. Census Bureau.
  15. Claude Taffin & Thierry Debrand, 2005. "Les facteurs structurels et conjoncturels de la mobilité résidentielle depuis 20 ans," Économie et Statistique, Programme National Persée, vol. 381(1), pages 125-146.
  16. Algan, Yann & Mayer, Thierry & Thoenig, Mathias, 2013. "The Economic Incentives of Cultural Transmission: Spatial Evidence from Naming Patterns across France," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9416, C.E.P.R. Discussion Papers.
  17. Fearon, James D. & Laitin, David D., 2000. "Violence and the Social Construction of Ethnic Identity," International Organization, Cambridge University Press, Cambridge University Press, vol. 54(04), pages 845-877, September.
  18. 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.
  19. Vigdor, Jacob L., 2002. "Interpreting ethnic fragmentation effects," Economics Letters, Elsevier, vol. 75(2), pages 271-276, April.
  20. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  21. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2646, C.E.P.R. Discussion Papers.
  22. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Xu, Guo, 2013. "Development through Empowerment: Delivering Effective Public Services – a Literature Review," ADB Economics Working Paper Series 382, Asian Development Bank.
  4. 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).

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