Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2014:5: Comment on Dahlberg, Edmark and Lundqvist (2012)

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 brief comment, we return to the question raised in Dahlberg, Edmark and Lundqvist (2012) concerning a causal relationship between ethnic diversity and preferences for redistribution. A re-analysis of their study indicates that the results are based on a severe sample selection bias and an invalid instrumental variable. Correcting for either of these problems reveals that there is no relationship between ethnic diversity and preferences for redistribution. In fact, our re-analysis shows that it is only possible to find a statistically negative significant relationship by combining a highly selected sample with the invalid instrument.

Keywords: ethnic diversity; income redistribution; re-analyzes

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

9 pages, September 30, 2014

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