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Segregation and the Quality of Government in a Cross Section of Countries

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  • Alberto Alesina
  • Ekaterina Zhuravskaya

Abstract

We provide a new compilation of data on ethnic, linguistic, and religious composition at the subnational level for a large number of countries. Using these data, we measure segregation of groups within the country. To overcome the endogeneity problem that arises because of mobility and endogenous internal borders, we construct an instrument for segregation. We find that more ethnically and linguistically segregated countries, i.e., those where groups live more spatially separately, have a lower quality of government; there is no relationship between religious segregation and governance. Trust is an important channel of influence; it is lower in more segregated countries. (JEL H11, H77, J15, O17, Z12, Z13)

Suggested Citation

  • Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
  • Handle: RePEc:aea:aecrev:v:101:y:2011:i:5:p:1872-1911
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    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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