Segregation and the Quality of Government in a Cross-Section of Countries Alberto Alesina (Harvard University and Igier) and Ekaterina Zhuravskaya (Paris School of Economics, EHESS, New Economic School) June 10, 2010 Online Appendix 1 Online Appendix .5 ethnicity .4 UGA AFG ZWE GTM PAK ETH IDN TUR ESP ECU .3 BFA S tilde COL KEN ZAF MAR GIN .2 TZA RUS CHE PHL GHA HND BEN TGO BEL ISR BHR PAN PER CIVMEX 0 .1 MKD NER SEN MLICAF BGR BLZ CHN NPL TWNFIN IND GAB MWI UZB BOL CMR USA LTUAUS ZMB UKR BLR LKA VNM BRA NZL CRI SAU KAZ KGZ LVA ROM EST GBR QAT DNK NOR CHL CZE KHM HRV JOR PRT FRA TJK AUT RWA ARG SVK PRY SVN CAN ARM ITA BGD DEU SWE ISL NLD IRL JPN GRC HUN KOR LSO 0 .1 .2 S hat .3 .4 .6 language NGA NAM UGA IDN .4 CMR S tilde IND ETH PAK TGO AFG ZWE GTM TUR ESP COLRUS PERKGZ MAR GIN ZAF HND BEN BEL CHE PAN BLZ GBR MOZ LVA BOL CIV MEX ITA NER MKDNIC PRYNPL SEN CAF MLI ECU CHN BGR UZB USA FIN GAB MWI CAN LTU UKR AUS EST BLR VNM RWA AUT SAU KAZ HRV THA ROM DNK CHL NOR CZE KHM MUS PRT TJK CRI SVK NZL SVN ARM BGD SWE ISL BRA JPN KOR HUN LSO HTI BFA KEN GHA 0 .2 ZMB 0 PHL TZA .1 .2 .3 .4 .5 S hat .3 religion IDN IND .2 BGR TZA S tilde NGA RUS KEN ETH GIN PHLMOZ .1 BEN KGZ KAZ BFA ROM LKA JPN ISR HUN NLD NAM MUS UZB GHA MDG CIV ZWE TGO EGY THA VNM CHE UGA USA HRV GTM NPL CAN CZE ZMB MEX SVN QAT DOM GBR PAK BRA ZAF LTU RWASEN AUT CAF KOR SVK HTI MWI STP MLI BLZ EST GAB NER PER PRY BGD PRT ARM AUS NZL CHL IRL TUR IRN CMR NIC 0 A 0 KHM .1 .2 S hat Figure A.1: Segregation indices Se and Sb 50 .3 .4 ZWE GTM AFG UGA TUR ethnicity segregation (S hat) .1 .2 .3 ECU PAK COL BFA MAR ZAF GINESP KEN IDN MEX CIV TZA HND ETH BEN BEL PAN 0 PHL NER GHA CAF MKD MLI BGR IND CHE SEN CHN BOL AUS BLZ FIN UZB ZMB LTU BRA BLR CRI SAU NZL VNM KAZ UKR GAB NPL GBR DNK CHL NOR MWI ROM EST PRT LVA LSO TJK AUT RWAUSA HRV BGD CAN ITA ARM ISL CZE SVK HUN SVN PRY JPN KOR SWE KHM .1 RUS KGZ CMR .2 .3 language segregation (S hat) .4 .5 .3 0 TGO PER IDN religion segregation (S hat) .1 .2 BGR TZA NGA IND KHM RUS KEN GIN ETH BEN BFA KAZ HUN MUS GHA UZB CIV TGO NAM 0 JPN NPL ROM HRV CAN ZMB MEXMOZ USAMLI BRA THA GBR HTI MWI VNM CZE LTU SENCAF NIC SVK PHL NER KOR EST GAB BGD AUTAUS CHE NZL SVN ARM BLZ PRT CHL RWA PRY .1 ZWE UGA PAK CMR ZAF PER GTM TUR .2 .3 language segregation (S hat) .4 .5 .3 0 KGZ IDN religion segregation (S hat) .1 .2 BGR TZA IND RUS KHM KEN ETH BEN KAZ KGZ LKA HUN NLD GHA UZB 0 JPN NPL ROM HRV CAN ZMB USA QAT MLI BRA GBR SEN MWI VNM CAF CZE LTU SVK NER PHL KOR EST GAB BGD CMR AUT SVN IRL AUS CHE ARM RWA PRY PRT CHL NZL BLZ 0 .1 CIV GIN BFA TGO ISR MEX PER ZWE UGA PAK ZAF .2 ethnicity segregation (S hat) GTM TUR .3 .4 Figure A.2: Segregation indices along the three dimensions of diversity 51 ethnicity .4 GTM AFG ECU Segregation (S hat) .2 .3 AFG UGA TUR PAK COL MAR BFA ISR PAN PER MEX BHR .1 RUS MKD CHE BGR CHN FIN 0 AUS UZB LTUBLR TWN CRI SAUNZL VNM QAT GBR UKR DNK CHL FRANOR LKA JOR ROM EST PRT ARG LSO RWA AUT USA KHM HRV CAN TJK BGD ARM ISL ITA CZEIRL JPN PRY HUN GRC SVN KOR DEU SWE NLDSVK 0 BEL .2 ETH BEN TGO IDN TZA CIV PHL NER GHA CAF MLI IND SEN BOL BLZ BRA KGZ KAZ MWI NPL LVA ETH BEN NER MLI IND BOL SEN 7 8 Log per capita GDP 9 10 R-squared = 0.1222 language .5 .4 AFG NAM TGO PAK KGZ MAR HND ZAF BEL PAN CMR ETH GIN BEN GBR LVA CIV IND ITA MEX TZA IDN NER NIC PHL CAF ECU BGR MKD MLI BOL CHE CHN SEN BLZ USA KEN AUS FIN RWA UZB AUT LTU BLR SAUNGA GHA NPL VNM HRV ZMBKAZ EST BFA GAB DNK CHL NOR MUS THA MWI CAN PRT ROM CRI UKR PRY LSO TJK SVN BRA KHM BGD ISL SWE CZE NZL SVK HTI JPN KOR HUN ARM .2 .4 Fractionalization .6 MOZ ZWE AFG UGA KGZ ETH MAR PER ZAF ESP GIN HND CMR BEN BEL PAN MOZ CIV TZA NER MLI MWI IND CAF BOL SEN KEN UZB GHA NGARWA NPL VNM ZMB BFA TJK KHMLSO BGD HTI ARM 6 .8 TUR NAM RUS COL TGO PAK .1 PER ESP UGA 0 RUS COL GTM Segregation (S hat) .2 .3 .5 .4 ZWE TUR Segregation (S hat) .2 .3 CHN UZB language .1 PHL GHA CAF BEL RUSMEX MKD BGR CHE AUS BLZ FIN LTU BLR BRA CRI TWN CMR NZL SAU VNM KAZ GAB NPLKGZ UKR GBR QAT DNK NOR LKAJOR FRA ROMLVACHL EST ARG PRT TJK RWA BGD AUTUSA KHMLSO HRVSVK CAN ARM ISL PRY HUNCZE SVN GRC ITA JPN IRL KOR DEU SWE NLD 6 GTM 0 ESP BHR ISR PAN PER CIV TZA MWI R-squared = 0.1789 0 ZAF HND TGO ZMB 1 MAR GIN IDN ZMB CMR .8 ECU COL GAB .4 .6 Fractionalization TUR KEN BFA 0 HND ZAF KEN GIN GTM UGA PAK .1 ESP ZWE Segregation (S hat) .2 .3 .4 ethnicity ZWE 7 GBR ITA LVA MEX IDN NIC PHL ECU CHN BGR MKD CHE BLZ AUS USA FIN LTU BLR AUT SAU HRV KAZ GAB EST DNK CHL PRY MUS THA CAN NOR ROM PRT CRI UKR SVN BRA SVK ISL NZL SWE HUNCZE KOR JPN 8 Log per capita GDP 9 10 R-squared = 0.0518 R-squared = 0.1320 religion .3 .3 religion IDN IDN TZA NGA IND KHM RUS KEN GIN ETH KGZ LKA UZB EGY NAM ISR MUS NGA KEN 0 .2 .6 .8 RUS KHM GIN BEN BFA NLD MDG CIV GHA TGO KGZ LKA KAZ MUS HUN NLD UZB CIV GHA ZWE EGY TGO NAM ISR UGA JPN NPL ROM HRV CAN ZMB MOZ MEX MLI USA QAT BRA SENHTI PAK THA GBR GTM MWI NER CAFSTP VNM GAB LTU ESTSVK CZE KOR ZAF BGDCMR ARM NIC PHLPER AUT CHE DOM SVN NZL AUS IRL RWA PRYBLZ IRN TUR CHL PRT ZWE UGA JPN CAN ZMB MOZ USA BRA GTMGABKOR VNM HTI MWI CZE GBR CAF NIC SVK STP EST ZAF AUT CHE SVN BLZ CMR AUSNZL CHL DOM RWA .4 Fractionalization IND ETH MDG 0 0 ROMNPL MLIHRV MEX QAT PAK SEN THA LTU NER PHL PERBGD ARM IRN PRTIRL TUR PRY BEN KAZ BFA HUN BGR TZA Segregation (S hat) .1 .2 Segregation (S hat) .1 .2 BGR 6 R-squared = 0.0001 7 8 Log per capita GDP 9 10 R-squared = 0.0973 Figure A.3: Segregation and fractionalization (left); Segregation and per capita GDP (right) 52 1 CHL ETH TZA -.5 Rule of law 0 .5 TWN BEN VNM MLI JOR CHN BEL SEN FRA MWI MARESP HUN NZL AUS PRT UGA AUT NLD CZE IRL RWA GBR SVN CRI ZMB SWE IND SVK CAN GHACHE KGZ NER HRV NPL FIN EST BFA KHM PHL BHR DNK LTUBGR PAN LKA QAT ARM USA LVA TJK TGO JPNCIV SAU BOL NOR ROM KEN DEU LSO UZBISL BRA ITA GAB CMR GIN GRC IDN MEX ECU PER HND CAF ISR BGD KAZ KOR MKD PAK BLZ TUR GTM UKR AFG ARG PRY ZAF RUS COL ZWE -1 BLR -.2 -.1 0 .1 ethnicity segregation (S hat) .2 .3 coef = -1.4209862, (robust) se = .4719442, t = -3.01 1 CHL TZA ETH -.5 Rule of law 0 .5 VNM BEN HUN MLI MWI CHN SEN AUS MAR PRT NZL BEL ESP RWA CZE GBR UGA CRI MOZ GHA AUT ZMB CAN SVK SVN EST NER SWE MUS IND CHEHRV KHMFIN KGZ USA PAN BFA SAU DNK LTU BGR TJK UZB ARM TGO LSO PHL LVA NPL ROM KEN THA CIVJPN BRA BOL NOR GAB ISL ITA MEX CMR BGD CAF GIN NIC IDN PER ECU HND KOR KAZ NAM PAK TUR NGA MKD BLZ AFG UKR PRY COL HTI BLR ZAF GTM ZWE -1 RUS -.2 0 .2 language segregation (S hat) .4 coef = -1.3428299, (robust) se = .43677639, t = -3.07 1 CHL EGY .5 VNM TZA ETH -.5 Rule of law 0 SEN MLI PRT HUN AUS MWI IRL UGA NZL BEN AUT NLD QAT RWA ZMB GBR CZE GHA NER HRVCAN KHM MDG SVK CHE IND EST THA USASVN LKA MOZ PHL KGZ BFA STP KEN NPL MEX MUS BRA ARM UZB GAB ROM JPN PER LTU BGD GIN TGO NAM CIV CMRPAKCAF NIC KOR IRN ISR DOM TUR PRYKAZ GTM BLZ ZAF BGR IDN NGA ZWE HTI -1 RUS -.1 0 .1 religion segregation (S hat) .2 coef = -.2467093, (robust) se = .99137285, t = -.25 Figure A.4: Residual scatter plots for rule of law and segregation (OLS) 53 ethnicity ethnicity ZWE .3 .3 ZWE ECU ISR ESP RUS BFA ZAF PAK HND PAN MAR EST KEN BENTGO GIN FIN PER LTU TWN MEX HUNBLR ETH AUS ISL MKD CHN DEUCHE KHM DNK LVAROM CAF UKR GBR ARM GHA UZB NLD NZLCZEKOR HRV NOR LSO IDN SVN TZA CANVNM SVK QAT CRI IRL BLZ JPN SWE PRT KAZ NER PRY GRC FRA AUT ARG CHL ZMB JORLKA USA TJK IND MLI KGZ ITA PHL BGD SENMWI SAU RWA BOL NPL GAB BRA CMR BEL BHR BGR -.1 CIV Segregation (S tilde) 0 .1 .2 UGA TUR GTM ESP TUR AFGCOL RUS BFA ETH PAK ECU HND PAN ESTFIN BEL TWN MAR CHE LTU ZAF TGO TZA KEN BEN BLR HUN PER ISL MKD GIN GHA MEX CZE KHM DNK LVA AUS UKR NLD ROM UZB ARM DEU HRV GBR CHN LSO QAT CAF NZL SVN BLZ CAN NOR PRT IRL PRY CRI SVK KOR SWE VNM GRC USA FRA NER LKA JOR ARG JPN PHL AUT KAZ MWI CHL SEN BGD NPL ITA GAB TJK MLI RWA KGZSAU ZMB BOL IND CMR BRA ISR IDN BHR BGR CIV -.2 -.2 -.1 Segregation (S hat) 0 .1 .2 GTM AFG UGA COL -.1 0 .1 .2 Predicted Segregation (S hat) .3 .4 -.1 0 .1 .2 Predicted Segregation (S tilde) language .3 .4 .4 .4 language GTM NAM ZWE NGA Segregation (S hat) 0 .2 UGA COL RUS TGO KGZ TUR AFG LVA PER BEL HRV AUT USA RWA BGD -.2 -.2 PAK GBR HND PAN ESP ZAF CMR BEN FIN MAR BGR GIN NICLTU KHM DNK BLZ BFA KOR AUS ECU BLR ETH UZB ISL HUN TZA JPN MEX CHE ITA CHN VNM EST MKD SWE CZE ROM GHACIV NOR IND MOZ ARM CAF SVNNGA ZMBNERTHA BGD LSO SVKUKR CRI KAZ KEN BOL SAU NZL MUS BRA IDNPRT SEN HTI MLI TJK MWI PRY NPL CHLPHL GAB CAN Segregation (S tilde) 0 .2 ZWE NAM -.2 0 .2 Predicted Segregation (S hat) .4 GTM TGO ESP CMR RUS COLUGA KGZ IDN AFG BFA LVA GBR PAN HND PER MAR FIN BGR PAK ETHNIC ISL BLZ GHA BEL HRV ITA MKD BLR LTU ZMB UZB IND GIN CZE ARM CHE KHM ESTROM HUN BEN DNK KOR MEX SWE SVN ECU KEN AUT NOR PRT PRY CHN MUS JPN UKR AUS SVK TZA CRI PHL ZAF BOL LSO CHL VNM NZL NPL CIVTHARWA KAZ HTI SAU NER GAB SEN CAN BRA MOZ TJK CAF MLI USA MWI -.5 .6 TUR 0 .5 Predicted Segregation (S tilde) 1 religion .2 .2 religion IDN IDN BGR BGR IND Segregation (S tilde) 0 .1 NGA INDGIN KEN NLD KGZ NAM IRL AUT CHE KHM MUS QAT BEN CAN STP PRT HUN BFA MEX HTI CHL HRV LKA PRY GTM NIC MDG ISR DOM EGY NZL BLZ SVK PER ZWE TGO GAB EST SVN NPL GHA LTU GBR CAF CIV IRN PHL UZB ZMB USA TUR RWA PAK SEN BRA JPN UGA MLI MWI CZE KOR MOZ ZAF ROM NER AUS ARM CMR THA BGD RUS ETH KAZ -.1 -.1 Segregation (S hat) 0 .1 TZA VNM -.2 0 .2 Predicted Segregation (S hat) .4 NGA GIN KEN NAM PHL KGZ QATMOZ CHE NLD NIC IRL ISR ETH STP AUT HRV MUS ROM BLZ BFA PRT HUN CANBEN PRY CMR EST LKA GAB SVN GTM ZWE SVK DOM EGY UZB JPN MEX HTI CHL NZL LTU GHA PERCAF MDG TGOZMBNPL IRN RWA CZE SEN GBRPAK THA TUR USACIV UGA NER ARM MWI ZAF MLI KORAUS BRA BGD RUS KHM -.2 .6 TZA VNM 0 .2 Predicted Segregation (S tilde) Figure A.5: Predictive power of the instrument conditional on all controls 54 KAZ .4 .6 ethnicity 1 CHL -.5 Rule of law 0 .5 ETH TZA TWN BEN VNM MLI JOR CHN FRASEN MWI MAR ESP HUN AUS PRTNZL UGA AUT NLD IRLCZE RWA GBR SVN CRI SWE ZMB IND GHA CHE NER KGZCAN SVK HRV BFA NPL KHMFIN EST PHLARM QAT BHR LTUDNK LKA LVAPANUSA TJK TGO JPN SAU BOL ROM KEN NOR DEU BRA ITA LSO ISL UZB GAB CMR GIN IDN GRC MEX PER HND CAF MKD KAZ KOR PAK BGD BLZ UKR AFG PRY COL ZAFBLR BEL BGR CIV ECU ISR TUR GTM ARG RUS -1 ZWE -.05 0 .05 .1 Fitted value of S hat from stage 1 .15 .2 language 1 CHL -.5 Rule of law 0 .5 ETH TZA VNM BEN HUN MLI SEN CHNMWIAUSMAR NZL PRT ESP CZE GBR CRI ZMBGHAUGA MOZ CAN EST SVK SVN NER SWE MUS CHE KHM IND FIN PAN BFA SAU DNK LTU BGR TJK UZB ARM LSO PHL LVA NPL ROM KEN NOR CIV THA BRA JPN BOL GAB ISL ITA MEX CMR BGDIDN CAF GIN NIC PER ECU HND KOR PAKKAZ NAM NGA GTM BLZ MKDUKR AFG PRY COL HTI BLR ZAF BEL RWA AUT HRV KGZ USA TGO TUR ZWE -1 RUS -.05 0 .05 .1 Fitted value of S hat from stage 1 .15 religion 1 CHL .5 VNM TZA EGY ETH -.5 Rule of law 0 SEN MLI PRT HUN MWI AUS IRL UGA NZL BEN AUTNLD QAT RWA ZMB GBR CZE GHA NER SVK KHM HRV MDG CHE CAN IND EST THA USA SVN LKA MOZ PHL KGZ KEN BFA STP NPL MEX MUS BRA ARM ROM JPN UZB IDN GAB PER LTU BGD GIN TGO NAM CIV CAF CMR PAK NIC KOR ISR IRN DOM TUR PRY GTM NGA BLZ ZWE HTI ZAF BGR KAZ -1 RUS -.05 0 .05 Fitted value of S hat from stage 1 .1 Figure A.6: Residual scatter plots for the rule of law and segregation (second stage of 2SLS) 55 Table A.1: Sources of data on group composition Country Afghanistan Argentina Armenia Australia Austria Bahrain Bangladesh Belarus Belgium Belize Benin Bolivia Brazil Bulgaria Burkina Faso Cambodia Cameroon Canada Central African Rep. Chile China Colombia Costa Rica Cote D’Ivoire Croatia Czech Rep. Denmark Dominican Rep. Ecuador Egypt Estonia Ethiopia Finland France Gabon Germany Ghana Greece Guatemala Guinea Haiti Honduras Hungary Iceland India Indonesia Iran Ireland Israel Italy Japan Jordan Kazakhstan Kenya Korea Ethnicity Lang INDEC (www.indec.mecon.ar) Census (www.armstat.am) Lang NSO (www.statistik.at) Census (www.bahrain.gov.bh) NSO (www.bbsgov.org) Census (www.ipums.umn.edu) Lang Census (www.statisticsbelize.org.bz) DHS (www.measuredhs.com) Census (www.ine.gov.bo) Census (www.ipums.umn.edu) Census (www.nsi.bg) DHS (www.measuredhs.com) Lang DHS (www.measuredhs.com) Census (www.statcan.ca) DHS (www.measuredhs.com) Census (www.ine.cl) Census (www.ipums.umn.edu) Census (www.ipums.umn.edu) Census (www.ipums.umn.edu) DHS (www.measuredhs.com) Census (www.dzs.hr) Census (www.czso.cz) Council of Europe report . Census (www.ipums.umn.edu) . Census (http://pub.stat.ee) DHS (www.measuredhs.com) Lang INED, Population, 2004 (www.ined.fr) DHS (www.measuredhs.com) NSO (www-ec.destatis.de) DHS (www.measuredhs.com) NSO (www.statistics.gr) DHS (www.measuredhs.com) DHS (www.measuredhs.com) . Census (www.ine-hn.org) Census (www.nepszamlalas.hu) NSO (www.statice.is) DHS (www.measuredhs.com) Census (www.bps.go.id) . Census (www.cso.ie) NSO (www1.cbs.gov.il) NSO (www.dossierimmigrazione.it) Census (www.stat.go.jp) Census (www.dos.gov.jo) NSO (http://en.government.kz) DHS (www.measuredhs.com) NSO (www.kosis.kr) Language NSO (www.mrrd.gov.af) . Census (www.armstat.am) Census (www.abs.gov.au) NSO (www.statistik.at) . Ethn Census (www.ipums.umn.edu) www.eurolang.net Census (www.statisticsbelize.org.bz) Ethn Census (www.ine.gov.bo) Census (www.ipums.umn.edu) Census (www.nsi.bg) DHS (www.measuredhs.com) Census (www.ipums.umn.edu) DHS (www.measuredhs.com) Census (www.statcan.ca) Ethn Ethn Ethn Ethn Census (www.ipums.umn.edu) Ethn Census (www.dzs.hr) Ethn Ethn . Census (www.ipums.umn.edu) . Census (http://pub.stat.ee) Ethn NSO (www.stat.fi) . Ethn . DHS (www.measuredhs.com) . DHS (www.measuredhs.com) DHS (www.measuredhs.com) DHS (www.measuredhs.com) Ethn Census (www.nepszamlalas.hu) Ethn DHS (www.measuredhs.com) DHS (www.measuredhs.com) . . . NSO (www.dossierimmigrazione.it) Ethn . Ethn DHS (www.measuredhs.com) Ethn Continued to the next page 56 Religion . . DHS (www.measuredhs.com) Census (www.abs.gov.au) NSO (www.statistik.at) . NSO (www.bbsgov.org) . . Census (www.statisticsbelize.org.bz) DHS (www.measuredhs.com) . Census (www.ipums.umn.edu) Census (www.nsi.bg) DHS (www.measuredhs.com) Census (www.ipums.umn.edu) DHS (www.measuredhs.com) Census (www.statcan.ca) DHS (www.measuredhs.com) Census (www.ine.cl) . . . DHS (www.measuredhs.com) Census (www.dzs.hr) Census (www.czso.cz) . DHS (www.measuredhs.com) . DHS (www.measuredhs.com) Census (http://pub.stat.ee) DHS (www.measuredhs.com) . . DHS (www.measuredhs.com) . DHS (www.measuredhs.com) . DHS (www.measuredhs.com) DHS (www.measuredhs.com) DHS (www.measuredhs.com) . Census (www.nepszamlalas.hu) . DHS (www.measuredhs.com) Census (www.bps.go.id) NSO (www.sci.org.ir) Census (www.cso.ie) NSO (www1.cbs.gov.il) . Census (www.stat.go.jp) . DHS (www.measuredhs.com) DHS (www.measuredhs.com) NSO (www.kosis.kr) Continued from the previous page Country Kyrgyzstan Latvia Lesotho Lithuania Macedonia Madagascar Malawi Mali Mauritius Mexico Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Niger Nigeria Norway Pakistan Panama Paraguay Peru Philippines Portugal Qatar Romania Russia Rwanda Sao Tome Saudi Arabia Senegal Slovakia Slovenia South Africa Spain Ethnicity DHS (www.measuredhs.com) NSO (www.csb.lv) Lang NSO (www.stat.gov.lt) NSO (www.stat.gov.mk) . Lang DHS (www.measuredhs.com) . Census (http://censos.ccp.ucr.ac.cr) Lang . . Census (www.cbs.gov.np) NSO (www.cbs.nl) Census (www.stats.govt.nz) . NSO (www.stat-niger.org/) . Census (http://statbank.ssb.no) Lang Census (http://censos.ccp.ucr.ac.cr) Census (http://www.dgeec.gov.py) DHS (www.measuredhs.com) Census (www.ipums.umn.edu) NSO (www.sef.pt) Census (www.planning.gov.qa) Census (www.ipums.umn.edu) Census (www.perepis2002.ru) DHS (www.measuredhs.com) . NSO (www.cds.gov.sa) DHS (www.measuredhs.com) Census (http://portal.statistics.sk) Census (www.stat.si) Lang Lang Sri Lanka Sweden Switzerland NSO (www.statistics.gov.lk) NSO (www.ssd.scb.se) Lang Taiwan Tajikistan Tanzania Thailand Togo Turkey NSO (http://eng.dgbas.gov.tw) NSO (www.stat.tj) DHS (www.measuredhs.com) . DHS (www.measuredhs.com) Multu, Servet (Int. J. Middle East Stud., 28, 1996) NSO (www.ubos.org) Census (www.ukrcensus.gov.ua) Council of Europe report Census (www.census.gov) DHS (www.measuredhs.com) Census (www.ipums.umn.edu) DHS (www.measuredhs.com) Lang Uganda Ukraine United Kingdom Usa Uzbekistan Vietnam Zambia Zimbabwe Language Religion DHS (www.measuredhs.com) DHS (www.measuredhs.com) NSO (www.csb.lv) . DHS (www.measuredhs.com) . Ethn NSO (www.stat.gov.lt) Ethn . . DHS (www.measuredhs.com) NSO (www.nso.malawi.net) DHS (www.measuredhs.com) Ethn DHS (www.measuredhs.com) NSO (www.gov.mu) NSO (www.gov.mu) Census (http://censos.ccp.ucr.ac.cr) Census (http://censos.ccp.ucr.ac.cr) Census (www.statistic-hcp.ma) . DHS (www.measuredhs.com) DHS (www.measuredhs.com) Census (www.npc.gov.na/census/index.htm) DHS (www.measuredhs.com) DHS (www.measuredhs.com) DHS (www.measuredhs.com) . NSO (www.cbs.nl) Census (www.stats.govt.nz) Census (www.stats.govt.nz) Census (http://censos.ccp.ucr.ac.cr) Census (http://censos.ccp.ucr.ac.cr) Ethn DHS (www.measuredhs.com) DHS (www.measuredhs.com) DHS (www.measuredhs.com) Ethn . Census (www.statpak.gov.pk) Census (www.statpak.gov.pk) Ethn . Census (http://www.dgeec.gov.py) Census (http://www.dgeec.gov.py) Census (www.inei.gob.pe/) Census (www.inei.gob.pe/) Census (www.ipums.umn.edu) Census (www.ipums.umn.edu) Ethn NSO (www.sef.pt) . Census (www.planning.gov.qa) Census (www.ipums.umn.edu) Census (www.ipums.umn.edu) Census (www.perepis2002.ru) Census (www.perepis2002.ru) NSO (www.statisticsrwanda.gov.rw) NSO (www.statisticsrwanda.gov.rw) . Census (www.ine.st) Ethn . Ethn DHS (www.measuredhs.com) Ethn Census (http://portal.statistics.sk) Census (www.stat.si) Census (www.stat.si) Census (www.ipums.umn.edu) Census (www.ipums.umn.edu) Centro De Investigaciones Sociologi. cas (www.cis.es) . NSO (www.statistics.gov.lk) Ethn . Piguet, E. and Wanner P., Population Piguet, E. and Wanner P., Population Studies 31, 2000. Studies 31, 2000. . . Ethn . Ethn DHS (www.measuredhs.com) Census (web.nso.go.th) Census (web.nso.go.th) DHS (www.measuredhs.com) DHS (www.measuredhs.com) Ethn DHS (www.measuredhs.com) Ethn Census (www.ukrcensus.gov.ua) Council of Europe report Census (www.census.gov) DHS (www.measuredhs.com) Ethn DHS (www.measuredhs.com) DHS (www.measuredhs.com) DHS (www.measuredhs.com) . Council of Europe report Census (www.census.gov) DHS (www.measuredhs.com) Census (www.ipums.umn.edu) DHS (www.measuredhs.com) DHS (www.measuredhs.com) Note: “NSO” – National Statistical Office; “DHS” – Demographics and Health Survey. “Lang” means that language data were used for ethnicity and “Enth” means that ethnicity data were used for language. This happens when there are no independent sources of regional-level data for language and ethnicity and, at the same time, national-level statistics on ethnic and linguistic diversity coincide. More detailed information about the data sources is available from the authors upon request. 57 58 Ethnicity seg inst .373 .152 .012 .141 .004 .000 .067 .000 .011 .000 .189 .000 .005 .012 .047 .111 .203 .279 .066 .005 .210 .092 .075 .108 .047 .149 .092 .453 .235 .094 .009 .001 .042 .007 .006 .000 .106 .000 .022 .006 .085 .001 .280 .027 .044 .007 .147 .303 .008 .051 .004 .002 .024 .000 . . .322 .244 . . .018 .003 .214 .079 .064 .000 .020 .000 .026 .000 .001 .017 .112 .035 .002 .007 .384 .205 .242 .090 . . .215 .036 .003 .026 .004 .000 .090 .090 .179 .003 . . .003 .000 .191 .435 .006 .062 .002 .000 .019 .030 .028 .043 .235 .008 .002 .000 Language seg inst .373 .401 . . .002 .000 .067 .000 .047 .392 . . .005 .000 .047 .103 .203 .327 .082 .014 .210 .037 .093 .118 .006 .000 .103 .141 .028 .019 .006 .001 .215 .072 .017 .000 .106 .000 .022 .001 .085 .000 .280 .033 .014 .000 .147 .109 .035 .229 .004 .002 .024 .000 . . .104 .001 . . .025 .088 .214 .021 .064 .070 . . .026 .015 . . .053 .047 . . .495 .021 .224 .055 .001 .000 .215 .000 .002 .016 .004 .000 .146 .004 .129 .001 . . . . . . .141 .001 .002 .000 . . .028 .036 .068 .002 .002 .000 Religion seg inst . . . . .002 .002 .003 .000 .006 .011 . . .008 .063 . . . . .002 .004 .103 .111 . . .019 .001 .229 .630 .093 .167 .148 .008 .007 .010 .025 .000 .014 .146 .000 .000 . . . . . . .053 .160 .026 .071 .013 .011 . . .005 .000 . . .047 .031 .010 .071 .119 .360 . . . . .010 .047 . . .057 .036 . . .016 .024 .125 .173 .015 .000 . . .067 .317 . . .186 .127 .271 .225 .001 .006 .004 .000 .041 .179 . . .031 .000 . . .098 .752 .151 .246 .009 .000 Kyrgyzstan Latvia Lesotho Lithuania Macedonia Madagascar Malawi Mali Mauritius Mexico Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Niger Nigeria Norway Pakistan Panama Paraguay Peru Philippines Portugal Qatar Romania Russia Rwanda Sao Tome Saudi Arabia Senegal Slovakia Slovenia South Africa Spain Sri Lanka Sweden Switzerland Taiwan Tajikistan Tanzania Thailand Togo Turkey Uganda Ukraine United Kingdom USA Uzbekistan Vietnam Zambia Zimbabwe Country Ethnicity seg inst .032 .050 .014 .022 .011 .000 .052 .057 .095 .044 . . .023 .014 .094 .155 . . .160 .078 .253 .142 . . . . .026 .004 .001 .000 .042 .000 . . .118 .180 . . .022 .000 .316 .204 .186 .000 .002 .002 .169 .048 .119 .000 .015 .000 .025 .000 .018 .007 .155 .012 .011 .025 . . .041 .000 .085 .097 .004 .009 .003 .004 .247 .096 .244 .005 .021 .000 .001 .000 .088 .069 .044 .000 .011 .197 .141 .008 . . .202 .083 .357 .468 .371 .024 .025 .016 .026 .000 .011 .012 .058 .121 .037 .003 .055 .031 .394 .406 Language seg inst .273 .425 .153 .190 .011 .000 .052 .057 .095 .062 . . .019 .011 .094 .121 .021 .000 .142 .061 .253 .275 .166 .014 .318 .038 .042 .010 . . .003 .000 .116 .000 .118 .216 .052 .039 .022 .036 .316 .124 .186 .000 .022 .002 .254 .189 .107 .000 .015 .000 . . .016 .030 .299 .314 .048 .286 . . .041 .018 .085 .034 .004 .009 .007 .007 .247 .185 .244 .000 . . .001 .000 .088 .140 . . .011 .257 .141 .006 .020 .072 .312 .222 .357 .865 .371 .008 .012 .007 .170 .000 .070 .604 .055 .163 .037 .002 .030 .019 .394 .539 .022 .048 .030 .059 .005 .012 .010 .196 . .018 . .001 .007 .010 .000 .020 .028 .158 .001 .010 . .017 .011 .004 .009 . .088 . .007 . . .220 .017 .048 .001 .033 . .017 .021 .054 .014 .023 .047 .022 .134 .116 .058 .000 .007 .007 .083 . .046 . .001 .031 .000 .000 .007 .104 .132 .003 .000 . .037 .145 .006 .048 . .000 . .022 . . .390 .032 .067 .003 .324 . .000 .022 .044 .053 .036 .244 Religion seg inst .095 .308 . . . . .013 .270 . . .056 .000 .014 .026 .021 .090 .062 .000 .022 .005 Note: “seg” indices the value of the index of segregation, while “inst” indicates the value of the instrument for segregation. Afghanistan Argentina Armenia Australia Austria Bahrain Bangladesh Belarus Belgium Belize Benin Bolivia Brazil Bulgaria Burkina Faso Cambodia Cameroon Canada Central African Rep. Chile China Colombia Costa Rica Cote D’Ivoire Croatia Czech Rep. Denmark Dominican Rep. Ecuador Egypt Estonia Ethiopia Finland France Gabon Germany Ghana Greece Guatemala Guinea Haiti Honduras Hungary Iceland India Indonesia Iran Ireland Israel Italy Japan Jordan Kazakhstan Kenya Korea Country Table A.2: Segregation indices Sb and their corresponding instruments 59 Ethnicity seg inst .412 .169 .012 .141 .006 .000 .067 .000 .014 .000 .189 .000 .005 .012 .054 .127 .203 .279 .098 .008 .214 .095 .075 .108 .047 .149 .100 .495 .320 .129 .021 .005 .071 .013 .007 .000 .116 .000 .022 .006 .104 .001 .299 .029 .044 .007 .153 .323 .019 .151 .021 .013 .024 .000 . . .322 .244 . . .027 .004 .367 .146 .088 .001 .017 .001 .080 .000 .005 .140 .175 .058 .003 .013 .384 .205 .244 .091 . . .215 .036 .003 .026 .004 .000 .090 .090 .357 .006 . . .003 .000 .191 .435 .006 .062 .003 .000 .019 .030 .040 .063 .273 .010 .002 .000 Language seg inst .412 .446 . . .009 .000 .067 .000 .047 .392 . . .005 .000 .054 .118 .203 .327 .173 .030 .214 .038 .156 .204 .003 .000 .103 .141 .291 .262 .021 .006 .407 .140 .073 .000 .116 .000 .022 .001 .104 .000 .299 .036 .014 .000 .153 .117 .035 .229 .021 .013 .024 .000 . . .107 .001 . . .056 .196 .367 .040 .088 .103 . . .080 .048 . . .267 .293 . . .398 .022 .244 .061 .001 .000 .215 .000 .002 .016 .004 .000 .373 .010 .447 .003 . . . . . . .141 .001 .003 .000 . . .040 .052 .288 .009 .002 .000 Religion seg inst . . . . .007 .012 .005 .000 .016 .027 . . .010 .081 . . . . .014 .025 .105 .114 . . .018 .001 .231 .639 .093 .167 .018 .014 .072 .094 .029 .000 .016 .173 .005 .000 . . . . . . .054 .166 .032 .089 .025 .023 . . .020 .000 . . .047 .031 .013 .096 .138 .427 . . . . .012 .066 . . .057 .036 . . .031 .053 .125 .173 .015 .000 . . .067 .326 . . .280 .202 .282 .237 .002 .016 .004 .001 .072 .322 . . .087 .000 . . .096 .787 .154 .253 .015 .000 Kyrgyzstan Latvia Lesotho Lithuania Macedonia Madagascar Malawi Mali Mauritius Mexico Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Niger Nigeria Norway Pakistan Panama Paraguay Peru Philippines Portugal Qatar Romania Russia Rwanda Sao Tome Saudi Arabia Senegal Slovakia Slovenia South Africa Spain Sri Lanka Sweden Switzerland Taiwan Tajikistan Tanzania Thailand Togo Turkey Uganda Ukraine United Kingdom USA Uzbekistan Vietnam Zambia Zimbabwe Country Ethnicity seg inst .040 .065 .031 .052 .002 .000 .066 .072 .128 .060 . . .078 .048 .108 .182 . . .160 .078 .253 .142 . . . . .098 .014 .003 .000 .046 .000 . . .128 .196 . . .022 .000 .401 .265 .186 .000 .011 .009 .169 .048 .197 .000 .016 .000 .025 .000 .030 .012 .245 .019 .013 .031 . . .041 .000 .122 .144 .012 .026 .007 .011 .254 .099 .355 .008 .052 .000 .004 .000 .189 .149 .086 .000 .015 .356 .257 .014 . . .213 .090 .357 .468 .489 .032 .054 .035 .027 .000 .069 .087 .076 .161 .051 .005 .055 .031 .394 .406 .004 .189 . .015 .257 .033 .380 .357 .489 .069 .170 .092 .098 .051 .242 .394 .000 .303 . .465 .011 .124 .290 .865 .011 .037 .000 1 .604 .003 .157 .540 Language seg inst .273 .425 .165 .214 .002 .000 .066 .072 .128 .084 . . .078 .046 .108 .142 .021 .000 .142 .061 .253 .275 .166 .014 .534 .065 .131 .034 . . .011 .000 .128 .000 .128 .235 .563 .497 .022 .036 .401 .161 .186 .000 .125 .011 .281 .224 .263 .000 .016 .000 . . .032 .062 .299 .314 .048 .286 . . .041 .018 .122 .050 .012 .026 .010 .010 .254 .191 .355 .000 Religion seg inst .096 .315 . . . . .017 .402 . . .056 .000 .015 .027 .014 .110 .062 .000 .023 .005 . . .131 .136 .064 .190 .031 .117 .066 .066 .006 .000 .060 .033 .011 .012 .200 .085 . . .019 .051 . . .010 .014 .011 .058 .127 .000 .007 .000 .021 .020 .092 .354 .158 .132 .017 .046 .014 .000 . . .017 .037 .015 .203 .022 .033 .017 .090 . . .090 .000 . . .037 .126 . . . . .220 .390 .040 .078 .049 .068 .003 .073 .034 .396 . . .019 .000 .032 .038 .059 .049 .038 .142 .023 .058 .049 .316 Note: “seg” indices the value of the index of segregation, while “inst” indicates the value of the instrument for segregation. Afghanistan Argentina Armenia Australia Austria Bahrain Bangladesh Belarus Belgium Belize Benin Bolivia Brazil Bulgaria Burkina Faso Cambodia Cameroon Canada Central African Rep. Chile China Colombia Costa Rica Cote D’Ivoire Croatia Czech Rep. Denmark Dominican Rep. Ecuador Egypt Estonia Ethiopia Finland France Gabon Germany Ghana Greece Guatemala Guinea Haiti Honduras Hungary Iceland India Indonesia Iran Ireland Israel Italy Japan Jordan Kazakhstan Kenya Korea Country Table A.3: Segregation indices Se and their corresponding instruments Table A.4: Summary statistics variable Obs. Mean SD Min Panel A: Segregation and Fractionalization Indices e Segregation (ethnicity) S 97 0.12 0.12 0 b Segregation (ethnicity) S 97 0.10 0.11 0 e Segregation (language) S 92 0.16 0.14 0 b Segregation (language) S 92 0.11 0.11 0 e Segregation (religion) S 78 0.06 0.06 0 b Segregation (religion) S 78 0.05 0.06 0 Fractionalization (ethnicity) 97 0.37 0.27 0 Fractionalization (language) 93 0.36 0.27 0 Fractionalization (religion) 78 0.43 0.24 0 Panel B: Dependent and control variables Voice and accountability 109 0.07 0.93 -1.63 Political stability 109 -0.11 0.88 -2.26 Government effectiveness 109 0.13 1.00 -1.46 Regulatory quality 109 0.15 0.86 -2.12 Rule of law 109 0.05 1.00 -1.68 Control of corruption 109 0.06 1.06 -1.41 ln (population) 109 16.41 1.57 11.84 ln (GDP per capita) 109 8.53 1.20 6.27 Protestants share 109 12.96 22.38 0 Muslims share 109 19.61 33.04 0 Catholics share 109 34.09 36.76 0 Latitude 109 0.32 0.20 0 English legal origin 109 0.25 0.43 0 French legal origin 109 0.44 0.50 0 German legal origin 109 0.06 0.23 0 Socialist legal origin 109 0.21 0.41 0 Scandinavian legal origin 109 0.05 0.21 0 Democratic tradition 109 4.86 3.62 0 Mountains 109 0.28 0.26 0 Panel C: Instrumental variables e (ethnicity) Predicted S 97 0.08 0.11 0 b (ethnicity) Predicted S 97 0.06 0.10 0 e (language) Predicted S 92 0.12 0.19 0 b (language) Predicted S 92 0.09 0.15 0 e (religion) Predicted S 78 0.11 0.15 0 b (religion) Predicted S 78 0.09 0.14 0 60 Max 0.49 0.39 0.56 0.49 0.28 0.27 0.92 0.89 0.83 1.54 1.48 2.29 1.67 2.07 2.47 20.95 10.41 97.80 99.40 96.90 0.72 1 1 1 1 1 10 0.94 0.49 0.47 1 0.86 0.79 0.75 61 e S b S e S b S F e S b S e S b S F e S b S e S b S F seg seg inst inst frac seg seg inst inst frac seg seg inst inst frac 1 0.48 0.53 0.42 0.80 0.84 0.22 0.31 0.39 0.21 0.22 0.23 0.22 0.07 b seg S 1 0.97 0.19 0.28 0.41 0.53 0.57 0.17 0.12 0.13 0.32 0.29 -0.15 1 0.18 0.31 0.46 0.47 0.56 0.15 0.11 0.13 0.31 0.27 -0.15 Ethnicity e inst b inst S S 1 0.55 0.32 0.10 0.05 0.89 0.29 0.23 0.21 0.23 0.31 F frac 1 0.80 0.28 0.25 0.54 0.46 0.41 0.20 0.19 0.10 e seg S 1 0.29 0.43 0.36 0.16 0.13 0.18 0.16 0.03 b seg S 1 0.89 0.05 -0.03 0.01 -0.02 -0.04 0.00 1 0.03 -0.10 -0.06 0.03 0.01 -0.10 Language e inst b inst S S 1 0.34 0.26 0.26 0.26 0.26 F frac 1 0.89 0.50 0.52 0.07 e seg S 1 0.50 0.58 0.01 b seg S 1 0.96 0.05 1 0.05 Religion e inst S b inst S 1 F frac Note: “seg” indicates the actual indices of segregation; “inst” indicates their corresponding instruments; “frac” indicates indices of fractionalization. Ethnicity Ethnicity Ethnicity Ethnicity Ethnicity Language Language Language Language Language Religion Religion Religion Religion Religion e seg S 1 0.96 0.40 0.43 0.50 0.85 0.80 0.20 0.25 0.48 0.32 0.33 0.28 0.27 0.09 Table A.5: Pair-wise correlations: Indices of actual and predicted segregation and indices of fractionalization Table A.6: Sources of control variables Variable ln (Population) ln (GDP per capita) Religion Legal origin Latitude Democratic tradition Fertility Investment Openness Mountains Colonial origin Region Island OECD Transition Partitioned Squiggliness Elevation Rivers Definition Natural log of population in the country. Average for the years 1995-2004. Source: World Development Indicators 2006. Natural log of GDP in constant 2000 international dollars per capita. Average for the years 1995-2004. Source: World Development Indicators 2006. For initial value of GDP per capita we use natural log of GDP in constant 2000 international dollars per capita. Average for the years 1975-1980. Source: World Development Indicators 2006. Identifies the percentage of the population of each country that belonged to the three most widely spread religions in the world in 1980. For countries of recent formation, the data is available for 1990-95. The numbers are in percent (scale from 0 to 100). The three religions identified here are: (1) Romanic Catholic; (2) Protestant; and (3) Muslim. Source: La Porta et. al. (1998). Original sources: World Christian Encyclopedia 1982, Worldmark Encyclopedia of Nations 1995, Statistical Abstract of the World 1995, Demographic Yearbook 1995, CIA World Factbook 1996 Identifies the legal origin of the Company Law or Commercial Code of each country. There are five possible origins: (1) English Common Law; (2) French Commercial Code; (3) German Commercial Code; (4) Scandinavian Commercial Code; and (5) Socialist/Communist laws. Source: La Porta et. al. (1998). Original sources: CIA World Factbook 1996. The absolute value of the latitude of the country, scaled to take values between 0 and 1. Source: La Porta et. al. (1998). Original source: CIA World Factbook 1996 Democracy score index. Scale from 0 to 10, with lower values indicating a less democratic environment. Average for the years 1975-2004. Source: Polity IV Project: Political Regime Characteristics and Transitions, 1800-2006. Fertility rate (births per woman). Average for the years 1975-2004. Source: World Development Indicators 2006. Investment share as % of GDP. Average for the years 1975-2004. Source: Penn World Table 6.2. Export plus Import as % of GDP. Average for the years 1975-2004. Source: Penn World Table 6.2. Measure of mountains in the country. Source: William Easterly’s data. Identifies countries that were colonized by a Western overseas colonial power since 1700 for at least 10 years. Source: Teorell and Hadenius (2005). Identifies the region where the country is situated. There are six possible regions: (1) East Asia and Pacific; (2) Europe and Central Asia; (3) Latin America and Carribean; (3) Middle East and North Africa; (4) North America; (5) South Asia; and (6) Sub-Saharan Africa. Source: World Bank. Identifies countries that are situated on islands and therefore have no bordering countries. Source: CIA World Factbook 1996 Identifies countries that are currently members of OECD. These countries are Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, USA. Source: wikipedia.org. Identifies transition countries. These countries are Armenia, Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Macedonia, Romania, Russian Federation, Slovak Republic, Slovenia, Tajikistan, Ukraine, Uzbekistan, Source: wikipedia.org. Percent of the population of each country that belongs to groups partitioned by the border. Source: Alesina et. al. (2006). Log of basic fractal index based on World Vector Shoreline Dataset (GIS format). This variable measures squiggliness of each country’s border. Source: Alesina et. al. (2006). Standard deviation of elevation of each country in meters. Source: GIS dataset. Share of area of the country covered by large perennial bodies (rivers, lakes, seas). Source: GIS dataset. 62 63 Control of corr. 0.11 [0.84] 0.52* [0.28] 0.831 yes full 78 -5.07*** [1.32] 0.94** [0.44] 0.146 no full 78 0.39 [0.72] 0.45 [0.30] 0.854 yes democ 64 Rule of law 0.03 [0.93] 0.36 [0.25] 0.839 yes full 78 -4.53*** [1.33] 0.76* [0.42] 0.118 no full 78 0.06 [0.81] 0.36 [0.26] 0.861 yes democ 64 Note: Robust standard errors adjusted for heteroscedasticity in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%. Voice Religion Political Govern-t Regul. stability effectiv. quality Panel A. Baseline: All controls and full sample Segregation 0.51 -0.97 0.28 0.9 [0.91] [1.20] [0.88] [0.85] Fractionalization 0.13 0.59* 0.43 0.15 [0.25] [0.35] [0.27] [0.23] R-squared 0.814 0.679 0.838 0.762 Controls yes yes yes yes Sample full full full full Obs. 78 78 78 78 Panel B. No controls and full sample Segregation -3.71*** -4.72*** -4.29*** -3.53*** [1.40] [1.39] [1.29] [1.25] Fractionalization 0.78* 0.72** 0.75* 0.63* [0.40] [0.35] [0.43] [0.37] R-squared 0.109 0.153 0.11 0.103 Controls no no no no Sample full full full full Obs. 78 78 78 78 Panel C: All controls; sample excludes dictatorships Segregation -0.23 -1.3 0.53 0.38 [0.92] [1.11] [0.78] [0.85] Fractionalization 0.49** 0.68* 0.45 0.06 [0.24] [0.37] [0.28] [0.25] R-squared 0.809 0.722 0.862 0.789 Controls yes yes yes yes Sample democ democ democ democ Obs. 64 64 64 64 Table A.7: Religious segregation and the quality of government, OLS 64 Control of corr. -1.11 [1.98] 0.58** [0.28] 0.827 yes full 78 16.08 29.49 -7.50** [3.07] 0.94** [0.45] 0.124 no full 78 14.96 38.64 0.22 [1.64] 0.46 [0.30] 0.854 yes democ 64 22.24 26.03 Rule of law -0.87 [1.98] 0.4 [0.25] 0.837 yes full 78 16.08 29.49 -6.65** [2.92] 0.76* [0.43] 0.1 no full 78 14.96 38.64 -0.04 [1.65] 0.36 [0.26] 0.861 yes democ 64 22.24 26.03 Note: Robust standard errors adjusted for heteroscedasticity in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%. “F-stat (het)” reports F-statistics for the excluded instrument from the first stage under the assumption of heteroscedasticity; and “F-stat (hom)” – under the assumption of homoscedasticity. Voice Religion Political Govern-t Regul. stability effectiv. quality Panel A. Baseline: All controls and full sample Segregation 0.55 -2.13 -1.14 0.97 [2.09] [2.34] [2.03] [2.03] Fractionalization 0.12 0.65* 0.50* 0.14 [0.27] [0.38] [0.27] [0.25] R-squared 0.814 0.675 0.834 0.762 Controls yes yes yes yes Sample full full full full Obs. 78 78 78 78 F-stat (het) 16.08 16.08 16.08 16.08 F-stat (hom) 29.49 29.49 29.49 29.49 Panel B. No controls and full sample Segregation -5.72 -4.39 -6.56** -4.46 [3.52] [2.84] [2.70] [2.74] Fractionalization 0.78* 0.72** 0.75* 0.63* [0.41] [0.35] [0.43] [0.38] R-squared 0.09 0.152 0.089 0.099 Controls no no no no Sample full full full full Obs. 78 78 78 78 F-stat (het) 14.96 14.96 14.96 14.96 F-stat (hom) 38.64 38.64 38.64 38.64 Panel C: All controls; sample excludes dictatorships Segregation 0.1 -2.41 -0.61 -0.39 [1.99] [2.79] [1.42] [2.21] Fractionalization 0.48* 0.72* 0.49* 0.08 [0.25] [0.40] [0.28] [0.26] R-squared 0.808 0.718 0.859 0.788 Controls yes yes yes yes Sample democ democ democ democ Obs. 64 64 64 64 F-stat (het) 22.24 22.24 22.24 22.24 F-stat (hom) 26.03 26.03 26.03 26.03 Table A.8: Religious segregation and the quality of government, the second stage of 2SLS Table A.9: Linguistic segregation and alternative measures of government quality Dep. var. b LS LF Obs. F-het F-hom R-sqrd Specification b LS LF Obs. F-het F-hom R-sqrd Specification Dep. var. b LS LF Obs. F-het F-hom R-sqrd Specification b LS LF Obs. F-het F-hom R-sqrd Specification ICRG quality of TI corruption government index OLS 2SLS OLS 2SLS -0.36* 0.09 -3.08** -0.52 [0.18] [0.61] [1.51] [4.81] -0.24*** -0.31*** -2.23*** -2.60*** [0.08] [0.11] [0.73] [0.90] 79 79 91 91 16.41 15.52 12.99 19.65 0.16 0.11 0.12 0.11 Full sample, no additional controls -0.34* -0.49 -1.76 -2.04 [0.17] [0.32] [1.07] [2.22] 0.11 0.13 0.31 0.35 [0.09] [0.09] [0.57] [0.55] 66 66 75 75 4.54 7.04 8.30 14.01 0.84 0.83 0.87 0.87 Democracies sample, all controls EF corruption index OLS 2SLS -32.40** -10.67 [15.61] [47.03] -23.85*** -27.02*** [7.39] [8.78] 91 91 15.52 19.65 0.14 0.13 EF Property EF Regulation rights index index OLS 2SLS OLS 2SLS -50.92*** -11.5 -15.31 -10.1 [17.77] [62.79] [15.89] [42.47] -19.01** -24.77** -22.55*** -23.31*** [7.95] [11.27] [6.05] [7.77] 91 91 91 91 15.52 15.52 19.65 19.65 0.13 0.10 0.16 0.16 Full sample, no additional controls -53.12*** -66.84** -4.9 -46.3 [19.20] [29.89] [19.57] [33.35] 4.8 6.71 -1.09 4.67 [7.64] [8.01] [7.01] [8.74] 75 75 75 75 7.04 7.04 14.01 14.01 0.80 0.80 0.69 0.64 Democracies sample, all controls Tax evasion index OLS -4.73*** [1.32] -0.01 [0.67] 33 -25.71** [10.75] 3.35 [5.48] 75 0.89 0.23 -1.65 [1.72] -0.06 [0.78] 32 0.76 -48.49** [21.33] 6.52 [6.15] 75 7.04 14.01 0.88 2SLS -1.06 [3.62] -0.61 [0.78] 33 9.93 6.78 0.11 -0.97 [2.98] -0.13 [0.78] 32 3.83 3.92 0.76 Note: Robust standard errors adjusted for heteroscedasticity in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%. “F-stat(het)” reports F-statistics for the excluded instrument from the first stage under the assumption of heteroscedasticity; and “F-stat(hom)” – under the assumption of homoscedasticity. 65 66 -1.30** [0.53] 0.14 [0.14] 97 0.839 Segregation (ethnicity) -1.27** [0.54] 0.00 [0.00] 97 0.837 Political stability Govern-t effectiv. Regul. Quality Rule of law Control of corr. OLS IV OLS IV OLS IV OLS IV OLS IV Coefficient on segregation in baseline specification (presented for comparison) -1.28 -1.98*** -3.65** -0.45 -2.14*** -0.88 -2.10* -1.20** -2.47*** -0.57 -1.77*** [1.04] [0.64] [1.43] [0.57] [0.65] [0.78] [1.22] [0.52] [0.67] [0.55] [0.65] Results with control for squiggliness from Alesina et al. (2010) -1.34 -2.32*** -3.83*** -0.56 -2.06*** -1.06 -2.00 -1.35** -2.40*** -0.62 -1.67** [1.10] [0.62] [1.35] [0.55] [0.76] [0.79] [1.26] [0.51] [0.72] [0.53] [0.73] -1.35 -5.01 -5.60 3.21 2.62 -0.87 -1.24 -0.35 -0.76 2.63 2.22 [2.52] [3.04] [3.38] [2.88] [3.13] [2.81] [2.85] [2.95] [3.15] [3.62] [3.69] 86 86 86 86 86 86 86 86 86 86 86 0.839 0.737 0.715 0.859 0.842 0.765 0.756 0.866 0.858 0.867 0.860 13.87 13.87 13.87 13.87 13.87 13.87 27.81 27.81 27.81 27.81 27.81 27.81 Results with control for partitioned dummy -1.48 -2.18*** -4.10** -0.55 -2.46*** -1.02 -2.42* -1.21** -2.60*** -0.59 -1.91*** [1.10] [0.62] [1.60] [0.59] [0.72] [0.81] [1.30] [0.55] [0.76] [0.57] [0.72] 0.15 0.23 0.35* 0.12 0.24 0.16 0.25 0.01 0.10 0.02 0.11 [0.15] [0.17] [0.19] [0.16] [0.18] [0.14] [0.16] [0.12] [0.14] [0.15] [0.17] 97 97 97 97 97 97 97 97 97 97 97 0.838 0.741 0.711 0.861 0.839 0.779 0.762 0.876 0.865 0.872 0.862 13.62 13.62 13.62 13.62 13.62 13.62 27.78 27.78 27.78 27.78 27.78 27.78 Results with control for the share of partitioned group from Alesina et al. (2010) -1.03 -2.39*** -4.46** -0.72 -2.88*** -0.91 -2.00 -1.32** -2.74*** -0.86 -2.39** [1.54] [0.69] [2.12] [0.61] [0.95] [0.77] [1.51] [0.55] [0.94] [0.59] [0.99] -0.00 -0.00 0.00 0.00 0.00* -0.00 -0.00 0.00 0.00 0.00 0.00* [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] 79 79 79 79 79 79 79 79 79 79 79 0.839 0.735 0.699 0.860 0.830 0.758 0.747 0.882 0.869 0.868 0.855 12.52 12.52 12.52 12.52 12.52 12.52 16.86 16.86 16.86 16.86 16.86 16.86 Results with control for the share of partitioned ethnic group constructed using our data -1.57 -1.78*** -3.49** -0.48 -2.67*** -0.98 -2.70* -1.19** -2.74*** -0.62 -2.23*** [1.06] [0.61] [1.47] [0.60] [0.84] [0.82] [1.46] [0.55] [0.85] [0.58] [0.78] 0.00 -0.00 -0.00 0.00 0.00 0.00 0.00 -0.00 0.00 0.00 0.00 [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] [0.00] 97 97 97 97 97 97 97 97 97 97 97 0.837 0.739 0.716 0.860 0.831 0.777 0.752 0.876 0.862 0.872 0.858 12.19 12.19 12.19 12.19 12.19 12.19 23.35 23.35 23.35 23.35 23.35 23.35 IV Note: Robust standard errors adjusted for heteroscedasticity in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%. “F-stat (het)” reports F-statistics for the excluded instrument from the first stage under the assumption of heteroscedasticity; and “F-stat (hom)” – under the assumption of homoscedasticity. Results are similar for the linguistic diversity. All reported regressions contain the standard set of controls. Observations R-squared F-het F-hom Partitioned (our data) Segregation (ethnicity) Observations R-squared F-het F-hom Partitioned (Alesina et al.) Segregation (ethnicity) Observations R-squared F-het F-hom Partitioned dummy Observations R-squared F-het F-hom -1.18* [0.61] -0.00 [0.00] 79 0.839 -1.43*** [0.50] -1.38 [2.54] 86 0.839 Segregation (ethnicity) Squiggliness -1.18** [0.51] Segregation (ethnicity) Voice OLS Table A.10: Controls for artificial states 67 Political stability Govern-t effectiv. Regul. Quality Rule of law Control of corr. OLS IV OLS IV OLS IV OLS IV OLS IV Coefficient on segregation in baseline specification (presented for comparison) -1.28 -1.98*** -3.65** -0.45 -2.14*** -0.88 -2.10* -1.20** -2.47*** -0.57 -1.77*** [1.04] [0.64] [1.43] [0.57] [0.65] [0.78] [1.22] [0.52] [0.67] [0.55] [0.65] Results with control for mean of the respective quality of government indicator among neighbors -1.38 -2.11*** -3.59** -0.52 -1.97** -0.92 -2.08 -1.23** -2.22*** -0.58 -1.43* [1.13] [0.63] [1.37] [0.57] [0.77] [0.82] [1.37] [0.50] [0.69] [0.54] [0.77] 0.22 0.13 0.33 0.09 0.29 0.21 0.37 0.11 0.25 -0.08 0.04 [0.27] [0.29] [0.34] [0.19] [0.25] [0.27] [0.34] [0.20] [0.25] [0.21] [0.25] 0.16 0.26** 0.25** 0.26*** 0.26*** 0.17* 0.17 0.31*** 0.30*** 0.40*** 0.39*** [0.10] [0.12] [0.12] [0.08] [0.08] [0.10] [0.11] [0.10] [0.10] [0.11] [0.11] Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 90 90 90 90 90 90 90 90 90 90 90 0.846 0.744 0.724 0.873 0.857 0.772 0.759 0.887 0.880 0.897 0.892 14.26 13.47 13.62 13.77 13.60 13.62 26.93 26.86 26.94 27.02 26.90 26.91 Results with controls for means of segregation and fractionalization among neighbors -1.16 -2.52*** -3.91*** -0.62 -2.19*** -1.06 -2.17* -1.39*** -2.61*** -0.77 -1.91*** [1.16] [0.62] [1.45] [0.57] [0.77] [0.81] [1.28] [0.50] [0.74] [0.52] [0.70] 0.20 0.30 0.52 0.08 0.32 0.22 0.39 0.08 0.27 -0.10 0.08 [0.28] [0.30] [0.37] [0.25] [0.30] [0.28] [0.35] [0.25] [0.30] [0.27] [0.31] 0.57 1.76** 2.20** 0.19 0.69 0.53 0.87 0.29 0.67 0.30 0.65 [0.69] [0.83] [1.00] [0.68] [0.73] [0.73] [0.82] [0.61] [0.70] [0.66] [0.74] -0.16 -0.19 -0.25 0.00 -0.07 -0.30 -0.35 -0.21 -0.26 -0.03 -0.09 [0.30] [0.42] [0.45] [0.35] [0.35] [0.40] [0.38] [0.32] [0.32] [0.33] [0.33] Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 88 88 88 88 88 88 88 88 88 88 88 0.842 0.745 0.727 0.859 0.842 0.767 0.756 0.872 0.862 0.879 0.871 12.06 12.06 12.06 12.06 12.06 12.06 28.53 28.53 28.53 28.53 28.53 28.53 IV Note: Robust standard errors adjusted for heteroscedasticity in brackets. * significant at 10%; ** significant at 5%; *** significant at 1%. “F-stat (het)” reports F-statistics for the excluded instrument from the first stage under the assumption of heteroscedasticity; and “F-stat (hom)” – under the assumption of homoscedasticity. Results are similar for the linguistic diversity. All reported regressions contain the standard set of controls. Similar results are for the linguistic diversity. Sample consists of states with at least one neighboring country. Weighting by population size was used to calculate mean values of the quality of government, fractionalization, and segregation in neighboring countries. Results are robust for using simple instead of population-weighted means. Standard controls Observations R-squared F-het F-hom Fractionalization in neighbors Segregation in neighbors Fractionalization (ethnicity) Segregation (ethnicity) Standard controls Observations R-squared F-het F-hom Quality of government in neighbors -1.41*** [0.50] 0.24 [0.22] 0.65 [0.67] -0.17 [0.29] Yes 88 0.843 -1.35** [0.53] 0.21 [0.22] 0.16 [0.10] Yes 90 0.846 Segregation (ethnicity) Fractionalization (ethnicity) -1.18** [0.51] Segregation (ethnicity) Voice OLS Table A.11: Controls for average quality of government and average diversity of neighbor states A.1 Discussion of Influential Observations The results are robust to the exclusion of any one particular country from the sample. The two most influential observations (which affect the results in favor of our story) are Chile (which has low ethnic segregation and very high quality of government conditional on other covariates) and Zimbabwe (which has very high ethnic segregation and low government quality). If we exclude both Chile and Zimbabwe from the sample, the results become weaker. Nonetheless, in the sample that excludes dictatorships, the coefficient on ethnic segregation remains statistically significant for government effectiveness, the rule of law, and control of corruption in IV regressions and for voice, political stability, the rule of law and control of corruption in the OLS regressions. Moreover, Chile and Zimbabwe have a countervailing force in the second stage regressions for ethnic diversity: Bulgaria and Russia are very influential observations, but they work against our story. Excluding Bulgaria (which has a relatively high quality of government and an extremely high predicted ethnic segregation) and Russia (where both predicted ethnic segregation and the quality of government are low) strengthens the negative effect of ethnic segregation on government quality. Linguistic segregation also has a statistically significant negative effect on voice, political stability, the rule of law and control of corruption in the OLS regressions without Chile and Zimbabwe. But the instruments become weak in the second stage. Yet, once we exclude the USA—the most influential observation in the first stage—in addition to Chile and Zimbabwe, the instrument for language becomes strong enough, and then the statistically significant results are obtained in the second stage regressions for voice and political stability. We conclude that the effect of segregation cannot be explained by the presence of outliers. 68