Working Paper: NBER ID: w23520
Authors: C. Justin Cook; Jason M. Fletcher
Abstract: A novel hypothesis posits that levels of genetic diversity in a population may partially explain variation in the development and success of countries. Our paper extends evidence on this novel question by subjecting the hypothesis to an alternative context that eliminates many alternative hypotheses by aggregating representative data to the high school level from a single state (Wisconsin) in 1957, when the population was composed nearly entirely of individuals of European ancestry. Using this sample of high school aggregations, we too find a strong effect of genetic diversity on socioeconomic outcomes. Additionally, we check an existing mechanism and propose a new potential mechanism of the results for innovation: personality traits associated with creativity and divergent thinking.
Keywords: Genetic Diversity; Socioeconomic Outcomes; Wisconsin Longitudinal Study; Innovation; Personality Traits
JEL Codes: J24; O4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Genetic diversity (C46) | years of schooling (I21) |
| Genetic diversity (C46) | job prestige (J62) |
| Genetic diversity (C46) | family income (D31) |
| Genetic diversity (C46) | personality traits (openness to experience and extraversion) (Z13) |
| personality traits (openness to experience and extraversion) (Z13) | creativity (O36) |
| Genetic diversity (C46) | task specialization (L23) |