Working Paper: CEPR ID: DP8621
Authors: Yann Algan; Camille Hmet; David Laitin
Abstract: This paper demonstrates the effects of ethnic and religious diversity on the quality of public spaces. Its identi fication 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.
Keywords: discrimination; fractionalization; public good
JEL Codes: H10; H41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| higher levels of ethnic diversity within public housing blocks (R28) | poorer provision of public goods (H42) |
| higher levels of ethnic diversity within public housing blocks (R28) | lower collective action (D70) |
| higher levels of ethnic diversity within public housing blocks (R28) | increased vandalism (K42) |
| one standard deviation increase in ethnic diversity (J15) | 9.77% increase in likelihood of negative perceptions regarding housing conditions (R21) |
| higher levels of religious diversity (Z12) | 4% increase in likelihood of negative housing perceptions (R28) |
| diversity (J15) | failure to develop norms for punishing antisocial behavior (P37) |
| diversity (J15) | neglect of public areas (H76) |
| diversity (J15) | no significant effect on civil conflicts (F51) |