Ethnic Diversity, Democracy, and Health: Theory and Evidence

Abstract

This paper examines the relationship between ethnic composition, political regimes, and the quality of public policy. Specifically, based on the citizen-candidate model, we assume individuals who have heterogeneous policy preferences and investigate how ethnic diversity affects selection of a politician and the resulting policy choices in democratic and dictatorial regimes. In the theoretical analysis, our model derives (1) a negative relationship between ethnic diversity and the quality of public policy, both in a democracy with a dominant group and in a dictatorship, and (2) a non-monotonic relationship in a democracy without a dominant group. In the empirical examination, using health outcomes as the proxy for the quality of public policy, our theoretical results are supported by evidence from the data of 154 countries.