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Diversity and Public Goods: A Natural Experiment with Exogenous Residential Allocation

Author

Listed:
  • Algan, Yann

    () (Sciences Po, Paris)

  • Hémet, Camille

    () (Paris School of Economics)

  • Laitin, David D.

    () (Stanford University)

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 D., 2011. "Diversity and Public Goods: A Natural Experiment with Exogenous Residential Allocation," IZA Discussion Papers 6053, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6053
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    References listed on IDEAS

    as
    1. Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio & Wacziarg, Romain, 2003. "Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-194, June.
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    19. repec:hrv:faseco:30752835 is not listed on IDEAS
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    More about this item

    Keywords

    fractionalization; public goods; collective action; discrimination;

    JEL classification:

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

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