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The Geography of Linguistic Diversity and the Provision of Public Goods

Author

Listed:
  • Klaus Desmet
  • Joseph Gomes
  • Ignacio Ortuño-Ortín
Abstract
This paper analyzes the importance of local interaction between individuals of different linguistic groups for the provision of public goods at the national level. The micro-founded conceptual framework we develop predicts that a country's public goods (i) decrease in its overall linguistic fractionalization, and (ii) either increase or decrease in its local learning multiplier, a measure of how local interaction affects antagonism towards other groups in the society at large. After constructing a 5 km by 5 km dataset on language use for 223 countries, we empirically explore these theoretical predictions. While overall fractionalization worsens public goods outcomes, we find a positive causal effect of local learning. Conditional on a country's overall diversity, public goods outcomes are maximized when there are a few large-sized groups and the diversity of each location mirrors that of the country as a whole. Our large-scale study, spanning the entire globe, confirms experimental micro-evidence in favor of contact theory.

Suggested Citation

  • Klaus Desmet & Joseph Gomes & Ignacio Ortuño-Ortín, 2018. "The Geography of Linguistic Diversity and the Provision of Public Goods," NBER Working Papers 24694, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:24694
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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