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

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Author Info
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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File URL: http://economics.uoregon.edu/papers/UO-2006-9_Lambert_Care.pdf
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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
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Handle: RePEc:ore:uoecwp:2006-9

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Related research
Keywords: Ethnic and Religious Heterogeneity Income Inequality

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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  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. [Downloadable!]
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