Alexander Kustov and Giuliana Pardelli independent effect may be difficult(or even impossi- group relations than of path-dependent processes of ble)to identify.15 state development.Insofar as the distribution of eth- How common are the patterns described here?We nic groups across the national territory overlaps with recognize that the problem of confounding the effects areas of historically low state presence,some groups of diversity with that of group shares at the subnational are more likely to be systematically tied to worse pro- level may be more severe in some settings than in oth- vision (Soifer 2016;Wimmer 2016;Singh and vom Hau ers.In particular,two main features set the Brazilian 2016).17 A second possibility is that part of the ob- case apart from other scenarios and may limit the gen- served effect of racial demography stems from the com- eralizability of our findings.First,the Brazilian society positional characteristics of local populations-such as is characterized by entrenched racial or color stratifi- those related to wealth or the level of interpersonal cation,an empirical reality that contradicts the coun. trust(Abascal and Baldassarri 2015:Bertocchi 2016)- try's myth of racial democracy (Bailey et al.2013), which might themselves lead to suboptimal public out- and has led some scholars to refer to racial groups as comes. castes (Telles 1996;Guimaraes 2004).In other words. In all,while our study does not rule out that eth- in Brazil,salient race and class cleavages overlap-a nic heterogeneity may be consequential in certain con- consequential fact16 that is clearly reflected in the coun- texts,it challenges the empirical findings of a vast body try's remarkably high between-group inequality level of work on the effects of diversity at the local level (Baldwin and Huber 2010).Second,Brazil is a federal Specifically,previous results show an association that country where regional divisions are significant and may simply be an artifact of a close correlation be- 元 deep-seated.As argued by Lieberman(2003),this fea- tween diversity and the share of disadvantaged groups ture of the Brazilian case created the conditions for the across localities.Taking these findings into account can institutionalization of uneven state authority across the thus aid researchers in elaborating a novel theoretical national territory.To the extent that underprivileged framework that delineates the scope conditions of pre- groups concentrate precisely in the geographical areas vious theories and identifies the specific mechanisms where the state is scarcely present,the patterns ob- that might operate in different demographic contexts. served here are more likely to emerge.However,these particularities are far from making Brazil a unique case. SUPPLEMENTARY MATERIAL In fact,a variety of historical legacies incite the emer- gence of rank-based societies.Aristocratic,colonial,or To view supplementary material for this article,please caste-system pasts often produce hierarchical distinc- visit https:/doi.org/10.1017/S0003055418000308, tions among ethnic groups that are multidimensional Replication materials can be found on Dataverse at: and highly persistent over time (Tilly 1999).Similarly https://doi.org/10.7910/DVN/AY32JZ. cases of salient regionalism are not uncommon (Singh 2015:Soifer2016. This paper's findings thus draw attention to the fact REFERENCES that alternative theories are necessary to explain why Abascal,Maria,and Delia Baldassarri.2015."Love Thy Neighbor? more homogeneous Afro-descendant communities ex- Ethnoracial Diversity and Trust Reexamined."American Journal perience worse public outcomes than diverse ones of Sociology 121(3):722-82. 5795.801g even after we take into account their more severe en- Alesina,Alberto,Reza Bagir,and William Easterly.1999."Public vironmental conditions,disproportionate poverty,and Goods and Ethnic Divisions."The Ouarterly Journal of Economics 114(4):1243-84. general underdevelopment.In fact,our results point Alesina,Alberto,Arnaud Devleeschauwer,William Easterly,Ser. to the limited applicability of some of the micro-level gio Kurlat,and Romain Wacziarg.2003."Fractionalization."Jour- mechanisms previously proposed in the literature.Hy- nal of Economic Growth 8(2):155-94. potheses based on"unfavorable intergroup dynamics' Alesina.Alberto,and Edward Glaeser.2004.Fighting Poverty in the do not elucidate how ethnic homogeneity,rather than US and Europe:A World of Difference.New York:Oxford Univer- sity Press. diversity,is related to worse public outcomes. Bailey,Stanley R.2009.Legacies of Race:Identities,Attitudes,and Although it is beyond the scope of this paper to build Politics in Brazil.Stanford:Stanford University Press. a novel theoretical framework that fully elucidates the Bailey,Stanley R.,Mara Loveman,and Jeronimo O.Muniz.2013 association of racial demography and public outcomes, "Measures of 'Race'and the Analysis of Racial Inequality in Brazil."Social Science Research 42 (1):106-19. we highlight two potential explanations for the pat- Baldwin,Kate,and John D.Huber.2010."Economic versus Cultural terns we observe.First.our results indicate that sub- Differences:Forms of Ethnic Diversity and Public Goods Provi- optimal outcomes are less a product of adverse inter- sion."American Political Science Review 104 (04):644-62 Bertocchi,Graziella.2016."The Legacies of Slavery in and out of Africa."IZA Journal of Migration 5(24):1-19. 15 An important limitation of our study concerns the potential en Bethell,Leslie,ed.1984.The Cambridge History of Latin America, dogeneity of our findings.Despite the fact that we cannot dismiss Vol.2:Colonial Latin America.Cambridge:Cambridge University the possibility that the relationships we observe are a result of some Press. third factor,reverse causality issues are implausible in this case due to L extremely limited cross-municipal migrations(Morten and Oliveira 2016). 17 In the case of Brazil,one potential driver behind these pattems can 16 Selway (2011)prominently highlights how the salience of an eth- be found in the organization of slave exile communities (mocambos nic cleavage may be heightened when it overlaps with other ethnic or quilombos).which were usually established in inaccessible areas dimensions,income,or territory (for theoretical elaboration,also see precisely to avoid being "discovered and destroyed by Portuguese Kustov 2017). punitive expeditions"(Bethell 1984). 1102Alexander Kustov and Giuliana Pardelli independent effect may be difficult (or even impossi￾ble) to identify.15 How common are the patterns described here? We recognize that the problem of confounding the effects of diversity with that of group shares at the subnational level may be more severe in some settings than in oth￾ers. In particular, two main features set the Brazilian case apart from other scenarios and may limit the gen￾eralizability of our findings. First, the Brazilian society is characterized by entrenched racial or color stratifi￾cation, an empirical reality that contradicts the coun￾try’s myth of racial democracy (Bailey et al. 2013), and has led some scholars to refer to racial groups as castes (Telles 1996; Guimarães 2004). In other words, in Brazil, salient race and class cleavages overlap—a consequential fact16 that is clearly reflected in the coun￾try’s remarkably high between-group inequality level (Baldwin and Huber 2010). Second, Brazil is a federal country where regional divisions are significant and deep-seated. As argued by Lieberman (2003), this fea￾ture of the Brazilian case created the conditions for the institutionalization of uneven state authority across the national territory. To the extent that underprivileged groups concentrate precisely in the geographical areas where the state is scarcely present, the patterns ob￾served here are more likely to emerge. However, these particularities are far from making Brazil a unique case. In fact, a variety of historical legacies incite the emer￾gence of rank-based societies. Aristocratic, colonial, or caste-system pasts often produce hierarchical distinc￾tions among ethnic groups that are multidimensional and highly persistent over time (Tilly 1999). Similarly, cases of salient regionalism are not uncommon (Singh 2015; Soifer 2016). This paper’s findings thus draw attention to the fact that alternative theories are necessary to explain why more homogeneous Afro-descendant communities ex￾perience worse public outcomes than diverse ones, even after we take into account their more severe en￾vironmental conditions, disproportionate poverty, and general underdevelopment. In fact, our results point to the limited applicability of some of the micro-level mechanisms previously proposed in the literature. Hy￾potheses based on “unfavorable intergroup dynamics” do not elucidate how ethnic homogeneity, rather than diversity, is related to worse public outcomes. Although it is beyond the scope of this paper to build a novel theoretical framework that fully elucidates the association of racial demography and public outcomes, we highlight two potential explanations for the pat￾terns we observe. First, our results indicate that sub￾optimal outcomes are less a product of adverse inter- 15 An important limitation of our study concerns the potential en￾dogeneity of our findings. Despite the fact that we cannot dismiss the possibility that the relationships we observe are a result of some third factor, reverse causality issues are implausible in this case due to extremely limited cross-municipal migrations (Morten and Oliveira 2016). 16 Selway (2011) prominently highlights how the salience of an eth￾nic cleavage may be heightened when it overlaps with other ethnic dimensions, income, or territory (for theoretical elaboration, also see Kustov 2017). group relations than of path-dependent processes of state development. Insofar as the distribution of eth￾nic groups across the national territory overlaps with areas of historically low state presence, some groups are more likely to be systematically tied to worse pro￾vision (Soifer 2016; Wimmer 2016; Singh and vom Hau 2016).17 A second possibility is that part of the ob￾served effect of racial demography stems from the com￾positional characteristics of local populations—such as those related to wealth or the level of interpersonal trust (Abascal and Baldassarri 2015; Bertocchi 2016)— which might themselves lead to suboptimal public out￾comes. In all, while our study does not rule out that eth￾nic heterogeneity may be consequential in certain con￾texts, it challenges the empirical findings of a vast body of work on the effects of diversity at the local level. Specifically, previous results show an association that may simply be an artifact of a close correlation be￾tween diversity and the share of disadvantaged groups across localities. Taking these findings into account can thus aid researchers in elaborating a novel theoretical framework that delineates the scope conditions of pre￾vious theories and identifies the specific mechanisms that might operate in different demographic contexts. SUPPLEMENTARY MATERIAL To view supplementary material for this article, please visit https://doi.org/10.1017/S0003055418000308. Replication materials can be found on Dataverse at: https://doi.org/10.7910/DVN/AY32JZ. REFERENCES Abascal, Maria, and Delia Baldassarri. 2015. “Love Thy Neighbor? Ethnoracial Diversity and Trust Reexamined.” American Journal of Sociology 121 (3): 722–82. Alesina, Alberto, Reza Baqir, and William Easterly. 1999. “Public Goods and Ethnic Divisions.”The Quarterly Journal of Economics 114 (4): 1243–84. Alesina, Alberto, Arnaud Devleeschauwer, William Easterly, Ser￾gio Kurlat, and Romain Wacziarg. 2003. “Fractionalization.” Jour￾nal of Economic Growth 8 (2): 155–94. Alesina, Alberto, and Edward Glaeser. 2004. Fighting Poverty in the US and Europe: A World of Difference. New York: Oxford Univer￾sity Press. Bailey, Stanley R. 2009. Legacies of Race: Identities, Attitudes, and Politics in Brazil. Stanford: Stanford University Press. Bailey, Stanley R., Mara Loveman, and Jeronimo O. Muniz. 2013. “Measures of ‘Race’ and the Analysis of Racial Inequality in Brazil.” Social Science Research 42 (1): 106–19. Baldwin, Kate, and John D. Huber. 2010. “Economic versus Cultural Differences: Forms of Ethnic Diversity and Public Goods Provi￾sion.” American Political Science Review 104 (04): 644–62. Bertocchi, Graziella. 2016. “The Legacies of Slavery in and out of Africa.” IZA Journal of Migration 5 (24): 1–19. Bethell, Leslie, ed. 1984. The Cambridge History of Latin America, Vol. 2: Colonial Latin America. Cambridge: Cambridge University Press. 17 In the case of Brazil, one potential driver behind these patterns can be found in the organization of slave exile communities (mocambos or quilombos), which were usually established in inaccessible areas precisely to avoid being “discovered and destroyed by Portuguese punitive expeditions” (Bethell 1984). 1102 Downloaded from https://www.cambridge.org/core. Shanghai JiaoTong University, on 26 Oct 2018 at 03:56:49, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/S0003055418000308