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Taking care of your own: Ethnic and religious heterogeneity and income inequality

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  • Oguzhan C. Dincer

    ()
    (Massey University)

  • Peter J. Lambert

    ()
    (University of Oregon Economics Department)

Abstract

Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic and religious polarization and income inequality and an inverse-U shaped relationship between ethnic and religious fractionalization and income inequality; and (2) that there is a negative relationship between ethnic and religious polarization and monthly welfare payments under the AFDC/TANF scheme, and a U-shaped relationship between ethnic and religious fractionalization and the AFDC/TANF payments.

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Bibliographic Info

Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2006-9.

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Length: 38
Date of creation: 15 Jul 2006
Date of revision:
Handle: RePEc:ore:uoecwp:2006-9

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Keywords: Ethnic and Religious Heterogeneity; Income Inequality;

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  1. José García-Montalvo & Marta Reynal-Querol, 2000. "- A Theory Of Religious Conflict And Its Effect On Growth," Working Papers. Serie EC 2000-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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Cited by:
  1. Lindqvist, Erik & Östling, Robert, 2006. "Identity and Redistribution," Working Paper Series in Economics and Finance 659, Stockholm School of Economics, revised 12 Jun 2007.

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