‘United in Diversity’---Does Social Diversity Increase Subjective?

Matthias Opfinger

No 2014-10, Research Papers in Economics from University of Trier, Department of Economics

Abstract: The European Union emphasizes the advantages arising from diversity. However, economic studies prove that diversity can lead to detrimental outcomes, ultimately resulting in lower well-being. This paper assesses the direct link between well-being and diversity within a society, in terms of ethnicity, language, and religion. I find that ethnic diversity is linearly and positively related to happiness and life satisfaction. The other dimensions of social diversity and well-being are related in a U-shape. At low levels of diversity an increase reduces well-being. The relationship becomes positive only if diversity is sufficiently high. I argue that a threat to the dominant position of one group prevents the formation of a common identity. If diversity is sufficiently high, the groups have to establish contact which reduces prejudices and helps to form a common identity.

Keywords: Social Diversity; Common Identity; Group Threat; Tolerant Societies (search for similar items in EconPapers)
JEL-codes: I3 Z1 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2014
New Economics Papers: this item is included in nep-hap, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:trr:wpaper:201410

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