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Ethnic Diversity and Social Capital in Indonesia

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  • Mavridis, Dimitris

Abstract

This paper uses the variations of ethnic diversity between districts in Indonesia to show that diversity leads to lower social capital outcomes. I find that distinguishing between ethnic polarization and fractionalization matters for the results, as polarization has a larger negative effect. The results cannot entirely be attributed to selection on unobservables, and at least part of the relationship should be interpreted as causal. Finally, diversity seems to increase tolerance, despite its negative effect on other social capital variables such as trust, perceived safety, and participation to community activities, and voting in elections.

Suggested Citation

  • Mavridis, Dimitris, 2015. "Ethnic Diversity and Social Capital in Indonesia," World Development, Elsevier, vol. 67(C), pages 376-395.
  • Handle: RePEc:eee:wdevel:v:67:y:2015:i:c:p:376-395
    DOI: 10.1016/j.worlddev.2014.10.028
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    Cited by:

    1. Rodr�guez-Pose, Andr�s & von Berlepsch, Viola, 2017. "Does population diversity matter for economic development in the very long-term? Historic migration, diversity and county wealth in the US," CEPR Discussion Papers 12347, C.E.P.R. Discussion Papers.
    2. Emeline Bezin & Bastien Chabé-Ferret & David de la Croix, 2018. "Strategic Fertility, Education Choices and Conflicts in Deeply Divided Societies," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2018011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Samuel Bazzi & Matthew Gudgeon, 2017. "The Political Boundaries of Ethnic Divisions," Boston University - Department of Economics - Working Papers Series WP2018-005, Boston University - Department of Economics.
    4. Gisselquist, Rachel M. & Leiderer, Stefan & Niño-Zarazúa, Miguel, 2016. "Ethnic Heterogeneity and Public Goods Provision in Zambia: Evidence of a Subnational “Diversity Dividend”," World Development, Elsevier, vol. 78(C), pages 308-323.
    5. Bove, Vincenzo & Elia, Leandro, 2017. "Migration, Diversity, and Economic Growth," World Development, Elsevier, vol. 89(C), pages 227-239.
    6. repec:gam:jscscx:v:8:y:2019:i:6:p:179-:d:238551 is not listed on IDEAS

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