Arbeitspapier

Ethnic Favoritism: An Axiom of Politics?

We investigate the prevalence and determinants of ethnic favoritism, i.e., preferential public policies targeted at the political leader's ethnic group. We construct a panel dataset of 2,022 ethnographic regions from 139 countries with annual observations from 1992 to 2012, and use nighttime light intensity as output measure to capture the distributive effects of a wide range of policies. We find robust evidence for ethnic favoritism: the political leaders' ethnographic regions enjoy 10% higher nighttime light intensity. We further find that ethnic favoritism is a global rather than Sub-Saharan African phenomenon, which is present in poor as well as rich countries; that political institutions have a weak effect on ethnic favoritism; that ethnic favoritism is most prevalent in ethnically fractionalized and segregated countries with long established polities; and that ethnic favoritism does not contribute to sustainable development.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 5209

Classification
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Institutions and Growth
Subject
ethnic favoritism
political leaders
institutions

Event
Geistige Schöpfung
(who)
De Luca, Giacomo
Hodler, Roland
Raschky, Paul A.
Valsecchi, Michele
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2015

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • De Luca, Giacomo
  • Hodler, Roland
  • Raschky, Paul A.
  • Valsecchi, Michele
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2015

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