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Diversity and Social Capital in the U.S: A Tale of Conflict, Contact or Total Mistrust?∗

Review of Economics and Institutions

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Title Diversity and Social Capital in the U.S: A Tale of Conflict, Contact or Total Mistrust?∗
 
Creator Belton, Willie James; Georgia Institute of TEchnology
Oyelere, Ruth Uwaifo; Morehouse College
Huq, Yameen; Georgia Institute of TEchnology
 
Subject Economics; Sociology
Ethnic Fractionalization; Social Capital; Trust; Diversity; Social Networks
D71, Z10, J10, J19
 
Description This paper explores the relationship between ethnic fractionalization and social capital. First, using data from 1990, 1997 and 2005 we test for time differences in the impact of ethnic fractionalization on social capital. Subsequently, we examine U.S. data for evidence consistent with the pro- posed outcomes in the conflict, contact, or hunker-down theses discussed in Putnam (2007). Putnam (2007) examines what happens to “trust” or “social capital” when individuals of different ethnicity are introduced into social, political and/or economic groups over time. Using an instru- mental variable (IV) estimator, we find little evidence of heterogeneity in the impact of ethnic fractionalization on social capital over our period of analysis. In addition, using both fixed effect and IV estimators, we reject the contact hypothesis, but find evidence consistent with the outcomes predicted in both conflict hypothesis and Putnam’s hunker-down hypoth- esis in inter-ethnic relations. Due to data limitations, we are unable to test directly which of these two thesis are more relevant for the U.S ex- perience. However, we provide suggestive evidence in support of conflict hypothesis over the hunker-down hypothesis.  Our results suggest that as communities become more diverse, there is a tendency for social capital to decline.
 
Publisher University of Perugia
 
Contributor —
 
Date 2018-12-10
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.rei.unipg.it/rei/article/view/263
10.5202/rei.v%vi%i.263
 
Source Review of Economics and Institutions; Vol 9, No 2 (2018); 39
2038-1379
2038-1344
 
Language eng
 
Relation http://www.rei.unipg.it/rei/article/view/263/185