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Taking care of your own: Ethnic and religious heterogeneity and income inequality

Author

Listed:
  • Oguzhan C. Dincer

    (Massey University)

  • Peter J. Lambert

    (University of Oregon Economics Department)

Abstract

Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic and religious polarization and income inequality and an inverse-U shaped relationship between ethnic and religious fractionalization and income inequality; and (2) that there is a negative relationship between ethnic and religious polarization and monthly welfare payments under the AFDC/TANF scheme, and a U-shaped relationship between ethnic and religious fractionalization and the AFDC/TANF payments.

Suggested Citation

  • Oguzhan C. Dincer & Peter J. Lambert, 2006. "Taking care of your own: Ethnic and religious heterogeneity and income inequality," University of Oregon Economics Department Working Papers 2006-9, University of Oregon Economics Department.
    • Handle: RePEc:ore:uoecwp:2006-9
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    File URL: http://economics.uoregon.edu/papers/UO-2006-9_Lambert_Care.pdf
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    References listed on IDEAS

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    3. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.

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    More about this item

    Keywords

    Ethnic and Religious Heterogeneity; Income Inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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