Existing indices of ethnic diversity are generally based on pre-defined groups, disregarding the (dis)similarities between them. This paper proposes an index that includes the dissimilarity in language, ethno-racial characteristcs and religion between groups. The resulting distance-adjusted...

This book examines the measurement and econometric effects of ethnic diversity. This issue is of great relevance to research and policy and is currently being discussed a great deal in the literature. In particular, a sizable literature has suggested that ethnic diversity constitutes a...