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Diversity and Public Goods: a Natural Experiment with Exogeneous Residential Allocation

Author

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  • Algan, Yann
  • Hémet, Camille
  • Laitin, David

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.

Suggested Citation

  • Algan, Yann & Hémet, Camille & Laitin, David, 2011. "Diversity and Public Goods: a Natural Experiment with Exogeneous Residential Allocation," CEPR Discussion Papers 8621, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8621
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    Citations

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    Cited by:

    1. Gregory Verdugo & Sorana Toma, 2018. "Can public housing decrease segragation ? Lessons and challenges from Non-European immigration in France," Sciences Po publications 17, Sciences Po.
    2. Monica Langella & Alan Manning, 2016. "Diversity and Neighbourhood Satisfaction," CEP Discussion Papers dp1459, Centre for Economic Performance, LSE.
    3. Xu, Guo, 2013. "Development through Empowerment: Delivering Effective Public Services – a Literature Review," ADB Economics Working Paper Series 382, Asian Development Bank.
    4. Combes, Pierre-Philippe & Decreuse, Bruno & Schmutz, Benoît & Trannoy, Alain, 2018. "Neighbor discrimination theory and evidence from the French rental market," Journal of Urban Economics, Elsevier, vol. 104(C), pages 104-123.
    5. Lapointe, Simon, 2018. "“Love thy neighbour”? The effect of income and language differences on votes for municipal secessions," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 229-245.
    6. Pietro Battiston & Simona Gamba, 2016. "When the two ends meet: an experiment on cooperation across the Italian North-South divide," LEM Papers Series 2016/41, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. 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.
    8. Claire Adida & David Laitin & Marie-Anne Valfort, 2014. "Muslims in France: identifying a discriminatory equilibrium," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 1039-1086, October.
    9. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    10. Borisova, Ekaterina I. & Polishchuk, Leonid & Peresetsky, Anatoly, 2014. "Collective management of residential housing in Russia: The importance of being social," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 609-629.
    11. Gomes, Joseph, 2014. "The health costs of ethnic distance: evidence from Sub-Saharan Africa," ISER Working Paper Series 2014-33, Institute for Social and Economic Research.
    12. Valeria Rueda & Guillaume Laval & Etienne Patin, 2016. "Achieving the American Dream: Cultural Distance, Cultural Diversity and Economic Performance," Oxford University Economic and Social History Series _140, University of Oxford, Department of Economics.
    13. Mavridis, Dimitris, 2015. "Ethnic Diversity and Social Capital in Indonesia," World Development, Elsevier, vol. 67(C), pages 376-395.
    14. Valeria Rueda, 2016. "When the times they’re not a changin': Essays on the persistent effects of religion, investments, and ancestry on economic, social, and political behaviors at the subnational level," Sciences Po publications info:hdl:2441/7t43ra4ari8, Sciences Po.
    15. Lisa D. Cook & Trevon D. Logan & John M. Parman, 2017. "Racial Segregation and Southern Lynching," NBER Working Papers 23813, National Bureau of Economic Research, Inc.
    16. repec:eee:wdevel:v:106:y:2018:i:c:p:27-39 is not listed on IDEAS
    17. repec:eee:deveco:v:133:y:2018:i:c:p:231-263 is not listed on IDEAS

    More about this item

    Keywords

    Discrimination; Fractionalization; Public Good;

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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