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Comment on Dahlberg, Edmark and Lundqvist (2012)

Author

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  • Nekby, Lena

    (Dept. of Economics, Stockholm University)

  • Pettersson-Lidbom, Per

    (Dept. of Economics, Stockholm University)

Abstract

In this brief comment, we return to the question raised in Dahlberg, Edmark and Lundqvist (2012) concerning a causal relationship between ethnic diversity and preferences for redistribution. A re-analysis of their study indicates that the results are based on a severe sample selection bias and an invalid instrumental variable. Correcting for either of these problems reveals that there is no relationship between ethnic diversity and preferences for redistribution. In fact, our re-analysis shows that it is only possible to find a statistically negative significant relationship by combining a highly selected sample with the invalid instrument.

Suggested Citation

  • Nekby, Lena & Pettersson-Lidbom, Per, 2014. "Comment on Dahlberg, Edmark and Lundqvist (2012)," Research Papers in Economics 2014:5, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2014_0005
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    References listed on IDEAS

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    1. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695, Elsevier.
    2. 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.
    3. Matz Dahlberg & Karin Edmark & Heléne Lundqvist, 2012. "Ethnic Diversity and Preferences for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 41-76.
    4. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
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    More about this item

    Keywords

    ethnic diversity; income redistribution; re-analyzes;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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