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Ethnic Segregation and Public Goods: Evidence from Indonesia

Author

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  • TAJIMA, YUHKI
  • SAMPHANTHARAK, KRISLERT
  • OSTWALD, KAI
Abstract
This article contributes to the study of ethnic diversity and public goods provision by assessing the role of the spatial distribution of ethnic groups. Through a new theory that we call spatial interdependence, we argue that the segregation of ethnic groups can reduce or even neutralize the “diversity penalty” in public goods provision that results from ethnic fractionalization. This is because local segregation allows communities to use disparities in the level of public goods compared with other communities as leverage when advocating for more public goods for themselves, thereby ratcheting up the level of public goods across communities. We test this prediction on highly disaggregated data from Indonesia and find strong support that, controlling for ethnic fractionalization, segregated communities have higher levels of public goods. This has an important and underexplored implication: decentralization disadvantages integrated communities vis-à-vis their more segregated counterparts.

Suggested Citation

  • Tajima, Yuhki & Samphantharak, Krislert & Ostwald, Kai, 2018. "Ethnic Segregation and Public Goods: Evidence from Indonesia," American Political Science Review, Cambridge University Press, vol. 112(3), pages 637-653, August.
  • Handle: RePEc:cup:apsrev:v:112:y:2018:i:03:p:637-653_00
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    Cited by:

    1. Hodler, Roland & Valsecchi, Michele & Vesperoni, Alberto, 2021. "Ethnic geography: Measurement and evidence," Journal of Public Economics, Elsevier, vol. 200(C).
    2. Desmet, Klaus & Gomes, Joseph Flavian & Ortuño-Ortín, Ignacio, 2020. "The geography of linguistic diversity and the provision of public goods," Journal of Development Economics, Elsevier, vol. 143(C).
    3. Bharathi, Naveen & Malghan, Deepak & Mishra, Sumit & Rahman, Andaleeb, 2022. "Public Goods and Nested Subnational Units: Diversity, Segregation, and Hierarchy," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322471, Agricultural and Applied Economics Association.
    4. Virgi A. Sari, 2019. "Educational Assistance and Education Quality in Indonesia: The Role of Decentralization," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 123-154, December.
    5. Bharathi, Naveen & Malghan, Deepak & Mishra, Sumit & Rahman, Andaleeb, 2018. "Spatial Segregation, Multi-scale Diversity, and Public Goods," SocArXiv 4fq8z, Center for Open Science.
    6. Bharathi, Naveen & Malghan, Deepak & Mishra, Sumit & Rahman, Andaleeb, 2024. "Status inequality and public goods," World Development, Elsevier, vol. 176(C).
    7. Ole Magnus Theisen & Håvard Strand & Gudrun Østby, 2020. "Ethno-political favouritism in maternal health care service delivery: Micro-level evidence from sub-Saharan Africa, 1981–2014," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 23(1), pages 3-27, March.
    8. NAKAGAWA Mariko & SATO Yasuhiro & YAMAMOTO Kazuhiro, 2019. "Segregation and Public Spending under Social Identification," Discussion papers 19096, Research Institute of Economy, Trade and Industry (RIETI).
    9. Virgi Sari, 2018. "Educational assistance and education quality in Indonesia: The role of decentralization," WIDER Working Paper Series 037, World Institute for Development Economic Research (UNU-WIDER).

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