ETHNIC DIVERSITY, PUBLIC SPENDING, AND INDIVIDUAL SUPPORT FOR THE WELFARE STATE: A REVIEW OF THE EMPIRICAL LITERATURE

We review the empirical literature that studies the effect of ethnic diversity on public spending and on individual support for the welfare state. The survey puts a particular focus on the fast-growing literature that uses experiments to study the effects of ethnic diversity. Many of these studies have appeared since the pioneering survey by Alesina and La Ferrara and have not been covered by a survey before.