Social Cohesion, Institutions and Growth

in

DRI Working Paper No. 17
By William Easterly, New York University; Jozef Ritzen, Office of the President, Maastricht University; Michael Woolcock, Development Research Group, The World Bank, and Kennedy School of Government, Harvard University 

Social Cohesion, Institutions and Growth
We present evidence that measures of ‘social cohesion’, such as income inequality and ethnic fractionalization, endogenously determine institutional quality, which in turn causally determines growth.