Author(s)
Klaus Desmet, Ignacio Ortuño-Ortín, Shlomo Weber

This paper investigates the effect of linguistic diversity on redistribution in a broad cross-section of countries. We use the notion of “linguistic distances” and show that the commonly used fractionalization index, which ignores linguistic distances, yields insignificant results. However, once distances between languages are accounted for, linguistic diversity has both a statistically and economically significant effect on redistribution. With an average level of redistribution of 9.5% of GDP in our data set, an increase byone standard deviation in the degree of diversity lowers redistribution by approximately one percentage point. We also demonstrate that other measures, such as polarization and peripheral heterogeneity, provide similar results when linguistic distances are incorporated.

Publication Type
Article
Journal
Journal of the European Economic Association
Volume
7
Issue Number
6
Pages
1291-1318
JEL Codes
H50: National Government Expenditures and Related Policies: General
D74: Conflict; Conflict Resolution; Alliances
D60: Welfare Economics: General
Z10: Cultural Economics; Economic Sociology; Economic Anthropology: General
Keywords
linguistic diversity
redistribution
polarization
peripheral heterogeneity