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

  • Oguzhan C. Dincer

    ()

    (Massey University)

  • Peter J. Lambert

    ()

    (University of Oregon Economics Department)

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.

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Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2006-9.

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Length: 38
Date of creation: 15 Jul 2006
Date of revision:
Handle: RePEc:ore:uoecwp:2006-9
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