Klaus Desmet () (Universidad Carlos III, Getafe (Madrid), Spain, and CEPR)  Ignacio Ortunoâ€Ortin () (Universidad Carlos III, Getafe (Madrid), Spain)  Shlomo Weber () (Southern Methodist University, Dallas, USA, CORE, Catholic University of Louvain, Louvain-la-Neuve, Belgium, and CEPR)
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This paper investigates the effect of linguistic diversity on redistribution in a broad cross-section of countries. We use the notion of "linguistic distances" and show that the commonly used fractionalization index, which ignores linguistic distances, yields insignificant results. However, once distances between languages are accounted for, linguistic diversity has both a statistically and economically significant effect on redistribution. With an average level of redistribution of 9.5% of GDP in our data set, an increase by one standard deviation in the degree of diversity lowers redistribution by approximately one percentage point. We also demonstrate that other measures, such as polarization and peripheral heterogeneity, provide similar results when linguistic distances are incorporated.
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Paper provided by International School of Economics at TSU, Tbilisi, Republic of Georgia in its series Working Papers with number
004-08.
Klaus Desmet &  Michel Le Breton &  Ignacio Ortunoâ€Ortin &  Shlomo Weber , 2008.
"Stability of Nations and Genetic Diversity ,"
Working Papers
003-08, International School of Economics at TSU, Tbilisi, Republic of Georgia.
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