DP11913 | Does ethnic segregation matter for spatial inequality? A cross-country analysis

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The paper examines the link between ethnic segregation and spatial inequality in 71 countries with different levels of economic development. The results reveal that ethnic segregation is associated with signifi cantly higher levels of spatial inequality. This fi nding is not affected by the inclusion of various covariates that may influence both spatial inequality and the geographical distribution of ethnic groups, and is con firmed by a number of robustness tests. The results also suggest that political decentralization and the quality of government could act as transmission channels linking ethnic segregation and spatial inequality.