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Ethnic Diversity and Preferences for Redistribution: Reply

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  • Dahlberg, Matz

    ()
    (Uppsala University; CESifo; IEB; IFAU; UCFS; UCLS.)

  • Edmark, Karin

    ()
    (IFN; CESifo; IFAU; UCFS; UCLS.)

  • Lundqvist, Heléne

    ()
    (Dept. of Economics, Stockholm University)

Abstract

In a comment to Dahlberg, Edmark and Lundqvist (2012), Nekby and Pettersson-Lidbom (2012) argue (i) that the refugee placement program should be measured with contracted rather than actually placed refugees, and claim that the correlation between the two measures is insignificant and close to zero; (ii) that instead of using the rotating individual panel, we should have used the full cross-sections in combination with municipality fixed effects; and (iii) that immigrants should be defined based on country of birth rather than citizenship. In this response, we discuss why we (i) do not agree that contracted refugees is the preferred measure, and we show that the correlation between the two measures is highly significant and large; (ii) do not agree that the full cross-sections can be used; and (iii) do agree that defining immigrants according to country of birth is preferred. In a re-analysis, the conclusion from Dahlberg, Edmark and Lundqvist (2012) that ethnic diversity has a statistically and economically significant negative effect on preferences for redistribution is only marginally affected.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2013:5.

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Length: 23 pages
Date of creation: 12 Feb 2013
Date of revision:
Handle: RePEc:hhs:sunrpe:2013_0005

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Keywords: Income redistribution; ethnic heterogeneity; immigration;

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  1. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2004. "Settlement policies and the economic success of immigrants," Journal of Population Economics, Springer, vol. 17(1), pages 133-155, February.
  2. Dahlberg, Matz & Edmark, Karin & Lundqvist, Heléne, 2011. "Ethnic Diversity and Preferences for Redistribution," Working Paper Series, Center for Labor Studies 2011:1, Uppsala University, Department of Economics.
  3. Olle Folke, 2010. "Shades of brown and green: Party effects in proportional election systems," Working Papers 2010/25, Institut d'Economia de Barcelona (IEB).
  4. Nekby, Lena & Pettersson-Lidbom, Per, 2012. "Revisiting the Relationship between Ethnic Diversity and Preferences for Redistribution," Research Papers in Economics 2012:9, Stockholm University, Department of Economics.
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