Working Paper: NBER ID: w10313
Authors: Alberto Alesina; Eliana La Ferrara
Abstract: We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on both focus both cities in developed countries (the US) and villages in developing countries. We also consider the endogenous formation of political jurisdictions and we highlight several open issues in need of further research.
Keywords: No keywords provided
JEL Codes: H0; D0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ethnic diversity (J15) | negative economic outcomes (F69) |
| ethnic diversity (J15) | suboptimal policies (D78) |
| ethnic diversity (J15) | civil unrest (D74) |
| ethnic diversity (J15) | economic instability (E32) |
| ethnic diversity (J15) | innovation and creativity (O35) |
| innovation and creativity (O35) | economic performance (P17) |
| ethnic fragmentation (J15) | economic performance (P17) |
| ethnic fragmentation (J15) | quality of institutions (D02) |
| quality of institutions (D02) | economic performance (P17) |