Do Tolerant Societies Demand Better Institutions?

Abstract

The increasing ethnic heterogeneity that many societies are experiencing could be interpreted as a detrimental phenomenon, since empirical literature exists that indicates that higher levels of ethnic fractionalization induce higher levels of corruption. This paper aims to show the role of tolerance in overcoming this harmful effect of ethnic heterogeneity. To this end, a sample of 86 countries is tested for a positive association between ethnic fractionalization and corruption. It is then shown that tolerance offsets this effect through both direct and indirect effects on corruption. In order to analyse the indirect effects, the level of income and the freedom of the press are selected as channels, since these represent two determinants of corruption that are linked to tolerance. Moreover, tolerance and corruption have been modelled as composites. Consequently, partial least squares path modelling has been used. For our sample, an index of tolerance towards immigrants and people of different race and an index of corruption are constructed, for which several sources are jointly utilised. Our results appear to indicate that the adverse effect of ethnic fractionalization on corruption is offset by tolerance, which reduces corruption not only directly but also indirectly through the level of income and the freedom of the press.

Ethnolinguistic Diversity and Education. A Successful Pairing

“…More precisely, we stress the role of social cohesion. Unlike Buitrago et al [10], who focus on tolerance, and Van Staveren and Pervaiz [9], who stress the inclusion of minorities, we point out that education promotes all these values and constitutes the key element for handling diversity and obtaining all its benefits. Therefore, our hypothesis is that diversity is negatively correlated with the level of income per capita when education is absent, but positively correlated when education is present.…”

“…Tolerance, trust, and cooperation among groups contribute towards social cohesion through the avoidance, or at least the mitigation, of the potential conflicts that could arise from diversity. Based on this argument, Buitrago et al [10] consider that social cohesion could be achieved in a heterogeneous society through tolerance, which might help the integration of all members of a community, thereby overcoming any friction caused by heterogeneity. In the same vein, we argue that education contributes towards social cohesion since it provides the instruments to become more tolerant, cooperative, and trusting; it facilitates social networks [12]; and it reduces the cultural distances between ethnic groups [11].…”

“…In an effort to answer this question, Van Staveren and Pervaiz [9] point out that social cohesion plays a key role in gaining all the benefits from diversity. Along these lines, Buitrago et al Buitrago et al [10] show that tolerance overcomes the negative effects of ethnolinguistic diversity on institutional quality.…”

Impact of Income Distribution on Social and Economic Well-Being of the State

“…Nowadays, these ideas for analysing and regulating income distribution are fundamental for the studies of living standards and economic processes caused by their changes. In particular, the noted studies analyse the links between income distribution and economic growth [20], including investment flows [21][22][23], income inequality, and current account imbalances [24,25]; indirect impact of some specific factors on income inequality [26][27][28], particularly tolerance for corruption [29]. Baradas and Lagoa [30] also investigate new trends in globalisation, including changes in education and business cycles, within the framework of the analysis of the impact of the financialization process on the labour force share in Gross domestic product (GDP) due to its impact on government activity and trade union density.…”

Measuring social diversity in economic literature: An overview for cross‐country studies

“…Van Staveren and Pervaiz (2017) stress social cohesion as a tool to handle diversity successfully. In this vein, Buitrago et al (2019) highlight tolerance as a key issue in achieving social cohesion in an ethnically diverse society, since it contributes to the integration of all members of a community, which helps overcome frictions caused by diversity. Likewise, Caraballo and Buitrago (2019) point out the decisive role of education in promoting social cohesion since it facilitates social networks and fosters tolerance and cooperativeness.…”