Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2012:9: Revisiting the Relationship between Ethnic Diversity and Preferences for Redistribution

Lena Nekby () and Per Pettersson-Lidbom ()
Additional contact information
Lena Nekby: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden
Per Pettersson-Lidbom: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

Abstract: In this paper, we return to the question raised in Dahlberg et al. (2012) concerning a causal relationship between ethnic diversity and preferences for redistribution. A re-analysis of their study indicates that results are based on an endogenous instrument and severe sample attrition bias. Correcting for either of these two problems reveals that there is no relationship between ethnic diversity and preferences for redistribution. More generally, we provide results that put into question the conventional description of the Swedish refugee placement policy.

Keywords: ethnic diversity; income redistribution; re-analyzes

JEL-codes: D64; I30; J15; J18; Z18

28 pages, August 23, 2012

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