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Can Multiculturalism improve public policy? Recent evidence from local governments in the UK

Pal, S, Fisher, J and Ghosh, S (2012) Can Multiculturalism improve public policy? Recent evidence from local governments in the UK Discussion Paper.

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The influence of ethnic diversity on public policy has assumed increasing attention in Europe during a period of rapid globalisation in the post-colonial era. Given the growing trend in public opinion against multiculturalism, it is particularly important to implement policies that are based on substantive evidence rather than a priori judgement. This paper argues that ethnic diversity and representation of minorities may affect public spending differently. Evidence using recent data from local governments in London suggests that greater ethnic diversity may lower (have no effect on) productive (unproductive) public spending, while greater minority representation may increase productive public spending, especially in more ethnically fractionalised communities. Further, the net effect of diversity on productive public spending is positive. These results are robust to alternative specifications, and therefore have potentially powerful policy implications.

Item Type: Article
Authors :
Date : April 2012
Depositing User : Symplectic Elements
Date Deposited : 28 Mar 2017 14:43
Last Modified : 31 Oct 2017 14:37

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