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Diversity and Public Goods: A Natural Experiment with Exogenous Residential Allocation

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Author Info

  • Algan, Yann

    ()
    (Sciences Po, Paris)

  • Hémet, Camille

    ()
    (Sciences Po, Paris)

  • Laitin, David D.

    ()
    (Stanford University)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6053.

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Length: 42 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6053

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Keywords: fractionalization; public goods; collective action; discrimination;

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References

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  7. Fearon, James D. & Laitin, David D., 2000. "Violence and the Social Construction of Ethnic Identity," International Organization, Cambridge University Press, vol. 54(04), pages 845-877, September.
  8. Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June.
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  12. 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.
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Citations

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