“…The paper also relates to the literature on the impact of diversity on development outcomes. Ethnic diversity is often found to be detrimental for outcomes such as economic growth (Easterly and Levine, 1997;Alesina and Ferrara, 2005), public good provision (Alesina et al, 1999), and civil conflicts (Montalvo and Reynal-Querol, 2005;Rohner et al, 2013;Arbatli et al, 2020). 6 However, in recent years there was some evidence that diversity can also be beneficial for productivity (Ottaviano and Peri, 2006;Peri, 2012), innovation (Lee, 2015), and economic development (Alesina et al, 2016;Ager and Brueckner, 2018;Montalvo and Reynal-Querol, 2020).…”