Within-Group Heterogeneity in a Multi-Ethnic Society

Artiles, Miriam (2023): Within-Group Heterogeneity in a Multi-Ethnic Society.

Abstract

Is ethnic diversity good or bad for economic development? Most studies find corrosive effects. I document that ethnic diversity need not spell poor development outcomes—a history of within-group heterogeneity can turn ethnic diversity into an advantage for development. I collect data from a natural experiment of Peru’s history: the forced resettlement of native populations in the 16th century. This intervention forced together various ethnic groups into new jurisdictions. Where colonial officials concentrated populations with a history of within-group heterogeneity, who settled in complementary climates of the Andes before colonization, ethnic diversity results in lower costs and may even become advantageous.

• Item Type: MPRA Paper
• Language: English
• Keywords: Ethnic Diversity, Within-Group Heterogeneity, Long-Run Economic Development
• Subjects: J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants ; Non-labor Discrimination; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N16 - Latin America ; Caribbean; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z10 - General

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