Taking care of your own: Ethnic and religious heterogeneity and income inequality

Oguzhan Dincer () and Peter J. Lambert ()
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Oguzhan Dincer: Massey University
Peter J. Lambert: University of Oregon Economics Department

University of Oregon Economics Department Working Papers from University of Oregon Economics Department

Abstract: Using recently developed indices of fractionalization and polarization, we analyze the direct and indirect effects of ethnic and religious heterogeneity on income inequality and on welfare programs across US states. We find strong evidence (1) that there is a positive relationship between ethnic and religious polarization and income inequality and an inverse-U shaped relationship between ethnic and religious fractionalization and income inequality; and (2) that there is a negative relationship between ethnic and religious polarization and monthly welfare payments under the AFDC/TANF scheme, and a U-shaped relationship between ethnic and religious fractionalization and the AFDC/TANF payments.

Keywords: Ethnic and Religious Heterogeneity; Income Inequality (search for similar items in EconPapers)
JEL-codes: D31 J15 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-soc
Date: 2006-07-15
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