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American Economic Review Vol. 107 No. 9 2017

Culture, Ethnicity, and Diversity

Klaus Desmet1; Ignacio Ortuño-Ortín2; Romain Wacziarg3

1 Department of Economics and Cox School of Business, Southern Methodist University, 3300 Dyer Street, Dallas, TX 75205, and CEPR (email: ) · 2 Department of Economics, Universidad Carlos III de Madrid, 28903 Getafe, Madrid, Spain (email: ) · 3 UCLA Anderson School of Management, 110 Westwood Plaza, Los Angeles, CA 90095, and NBER (email: )

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Abstract

We investigate the empirical relationship between ethnicity and culture, defined as a vector of traits reflecting norms, attitudes and preferences. Using surveys of individual values in 76 countries, we find that ethnic identity is a significant predictor of cultural values, yet that within-group variation in culture trumps between-group variation. Thus, in contrast to a commonly held view, ethnic and cultural diversity are unrelated. We explore the correlates of cultural diversity and of the overlap between culture and ethnicity, finding that the level of economic development is positively associated with cultural diversity and negatively associated with the overlap between culture and ethnicity. Finally, although only a small portion of a country's overall cultural heterogeneity occurs between groups, this does not imply that cultural differences between groups are irrelevant. Indeed, we find that civil conflict becomes more likely when there is greater overlap between ethnicity and culture.

DOI
10.1257/aer.20150243
Volume
107
Issue
9
Pages
2479-2513
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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