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The Social Effects of Ethnic Diversity at the Local Level: A Natural Experiment with Exogenous Residential Allocation

Listed author(s):
  • Yann Algan

    (Département d'économie)

  • Camille Hémet

    (Aix-Marseille School of Economics)

  • David, Department Of Political Science) Laitin

    (Department of Political Science)

This paper demonstrates the effects of ethnic diversity on social relationships and the quality of public goods at a very finite neighborhood level. We use detailed block level data on diversity and housing quality from a representative survey on housing in France. We show how and to what extent diversity within a neighborhood can directly affect household well-being and the quality of the common spaces, whereas the previous literature looks at more aggregate outcomes through voting channels. Our identification strategy to address the bias from endogenous residential sorting relies on the exogeneity of public housing allocations with respect to ethnic characteristics in France. Diversity is shown to have a negative effect on the quality of local public goods, either due to vandalism, not deterred by other-regarding preferences and social policing, or due to collective action failure to ensure effective property management. However, we find that diversity has no robust effect on public safety at a local level and, if anything, is more related to social anomie.

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File URL: http://spire.sciencespo.fr/hdl:/2441/30a25e1csn8pqrmbq8oije0o6j/resources/social-effects-of-ethnic-diversity.pdf
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Paper provided by Sciences Po in its series Sciences Po publications with number info:hdl:2441/30a25e1csn8pqrmbq8oije0o6j.

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Date of creation: Dec 2012
Handle: RePEc:spo:wpmain:info:hdl:2441/30a25e1csn8pqrmbq8oije0o6j
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  23. Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies," Introductory Chapters, in: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Princeton University Press.
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