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

  • Algan, Yann

    ()

    (Sciences Po, Paris)

  • Hémet, Camille

    ()

    (Sciences Po, Paris)

  • Laitin, David D.

    ()

    (Stanford University)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6053.

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Length: 42 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:iza:izadps:dp6053
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  1. Alberto Alesina & Ekaterina Zhuravskaya, 2008. "Segregation and the Quality of Government in a Cross-Section of Countries," NBER Working Papers 14316, National Bureau of Economic Research, Inc.
  2. Dominique Goux & Eric Maurin, 2007. "Close Neighbours Matter: Neighbourhood Effects on Early Performance at School," Economic Journal, Royal Economic Society, vol. 117(523), pages 1193-1215, October.
  3. Combes, Pierre-Philippe & Decreuse, Bruno & Schmutz, Benoît & Trannoy, Alain, 2012. "The neighbor is king: Customer discrimination in the housing market," CEPR Discussion Papers 9160, C.E.P.R. Discussion Papers.
  4. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2000. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," NBER Working Papers 7973, National Bureau of Economic Research, Inc.
  5. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  6. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
  7. Wacziarg, Romain & Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio, 2002. "Fractionalization," Research Papers 1744, Stanford University, Graduate School of Business.
  8. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods And Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1243-1284, November.
  9. Disdier, Anne-Célia & Head, Keith & Mayer, Thierry, 2010. "Exposure to foreign media and changes in cultural traits: Evidence from naming patterns in France," Journal of International Economics, Elsevier, vol. 80(2), pages 226-238, March.
  10. Rachel Glennerster & Edward Miguel & Alexander Rothenberg, 2010. "Collective Action in Diverse Sierra Leone Communities," NBER Working Papers 16196, National Bureau of Economic Research, Inc.
  11. Matz Dahlberg & Karin Edmark & Heléne Lundqvist, 2011. "Ethnic Diversity and Preferences for Redistribution," CESifo Working Paper Series 3325, CESifo Group Munich.
  12. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers 2646, C.E.P.R. Discussion Papers.
  13. Patrick Bayer & Stephen L. Ross, 2004. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Econometric Society 2004 North American Summer Meetings 495, Econometric Society.
  14. Claude Taffin & Thierry Debrand, 2005. "Les facteurs structurels et conjoncturels de la mobilité résidentielle depuis 20 ans," Économie et Statistique, Programme National Persée, vol. 381(1), pages 125-146.
  15. Roland G. Fryer & Steven D. Levitt, 2004. "The Causes and Consequences of Distinctively Black Names," The Quarterly Journal of Economics, MIT Press, vol. 119(3), pages 767-805, August.
  16. Erzo F.P. Luttmer, 1999. "Group Loyalty and the Taste for Redistribution," JCPR Working Papers 61, Northwestern University/University of Chicago Joint Center for Poverty Research.
  17. Fearon, James D. & Laitin, David D., 2000. "Violence and the Social Construction of Ethnic Identity," International Organization, Cambridge University Press, vol. 54(04), pages 845-877, September.
  18. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August.
  19. Vigdor, Jacob L., 2002. "Interpreting ethnic fragmentation effects," Economics Letters, Elsevier, vol. 75(2), pages 271-276, April.
  20. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
  21. Algan, Yann & Mayer, Thierry & Thoenig, Mathias, 2013. "The Economic Incentives of Cultural Transmission: Spatial Evidence from Naming Patterns across France," CEPR Discussion Papers 9416, C.E.P.R. Discussion Papers.
  22. Miguel, Edward & Gugerty, Mary Kay, 2005. "Ethnic diversity, social sanctions, and public goods in Kenya," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2325-2368, December.
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