Diverse countries tend to have more conflict, lower development, and worse public goods, possibly due to antagonism between groups. Based on recent research mapping local linguistic diversity across the entire globe, this column argues that local interaction with people of other ethnolinguistic groups can mitigate the negative effect of overall diversity on a country’s outcomes in health, education and public goods. This finding lends support to policies that influence the local mixing of ethnolinguistic groups.
Klaus Desmet, Joseph Flavian Gomes, Ignacio Ortuño-Ortin, 17 March 2017
Vincenzo Bove, Leandro Elia, 16 November 2016
There is much dispute over whether immigration is beneficial or detrimental to the host country, and any conclusions are often event-driven rather than evidence-based. This column explores evidence on how immigration affected economic development between 1960 and 2013 through its effect on the cultural and ethnic composition of the destination country. Cultural heterogeneity appears to have had a positive impact on economic development, and the positive effect of diversity seems to have been stronger in developing countries.
Dalia Marin, 23 June 2016
Income inequality is less severe in Germany than in the US. Part of this is due to CEO pay in the US growing faster than in Germany. This column offers some novel explanations for these observations. From the mid-1990s, Germany began offshoring managerial tasks to Eastern Europe, reducing demand for German managers. In addition Germany offshored skill-intensive jobs to Eastern Europe, reducing the skill premium.
Alberto Alesina, Stelios Michalopoulos, Elias Papaioannou, 18 November 2012
This paper explores the consequences and origins of contemporary differences in well-being across ethnic groups within countries. The authors show that ethnic inequality is strongly inversely related to per capita income, and that differences in geographic endowments across ethnic homelands explain a sizable portion of contemporary ethnic inequality. This deeply rooted inequality in geographic attributes across ethnic regions is also negatively related to comparative development.
Jimmy Chan, Erik Eyster, 04 May 2007
Ethnic and racial diversity at American colleges and universities has recently become a major issue of political debate, and the authors of CEPR DP6278 examine public attitude to measures adopted to ensure such diversity.