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Taking care of your own: ethnic and religious heterogeneity and income inequality

Author

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  • Oguzhan C. Dincer
  • Peter J. Lambert

Abstract

Purpose - The purpose of this paper is to investigate the relationships between measures of ethnic and religious heterogeneity on the one hand and measures of inequality and redistribution on the other, using state‐level US data. Design/methodology/approach - The relationship between ethnic/religious heterogeneity and inequality/redistribution is estimated, first, with ordinary least squares (OLS) and then with generalized method of moments (GMM). The principal explanatory variables for inequality and redistribution in the study are ethnic and religious polarization and fractionalization measures. Findings - It is found that inequality is positively associated with polarization and has an inverse‐U relationship with fractionalization. These findings are bolstered by findings of indirect effects of ethnic and religious heterogeneity on inequality through their influence on welfare programs. Originality/value - This is the first paper investigating the magnitude of possible direct and indirect effects of ethnic and religious heterogeneity on income inequality using US data.

Suggested Citation

  • Oguzhan C. Dincer & Peter J. Lambert, 2012. "Taking care of your own: ethnic and religious heterogeneity and income inequality," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 39(3), pages 290-313, July.
    • Handle: RePEc:eme:jespps:v:39:y:2012:i:3:p:290-313
    DOI: 10.1108/01443581211245883
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    Citations

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    Cited by:

    1. Kazeem B. Ajide & Olorunfemi Y. Alimi & Simplice A. Asongu, 2019. "Ethnic Diversity and Inequality in Sub-Saharan Africa: Do Institutions Reduce the Noise?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1033-1062, October.
    2. Andreas Bergh & Therese Nilsson, 2014. "When More Poor Means Less Poverty: On Income Inequality and Purchasing Power," Southern Economic Journal, John Wiley & Sons, vol. 81(1), pages 232-246, July.
    3. Erik Lindqvist & Robert Östling, 2013. "Identity and redistribution," Public Choice, Springer, vol. 155(3), pages 469-491, June.
    4. Paudel, Jayash, 2021. "Why Are People Energy Poor? Evidence From Ethnic Fractionalization," Energy Economics, Elsevier, vol. 102(C).
    5. Krishna Chaitanya Vadlamannati & Samuel Brazys, 2023. "Does cultural diversity hinder the implementation of IMF-supported programs? An empirical investigation," The Review of International Organizations, Springer, vol. 18(1), pages 87-116, January.
    6. Arusha Cooray, 2014. "Ethnic or Political Fractionalisation? A District Level Analysis of the Provision of Public Goods in Sri Lanka," Growth and Change, Wiley Blackwell, vol. 45(4), pages 640-666, December.
    7. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.

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