POLS 1155 Lecture Notes - Lecture 6: Production Function, Infant Mortality
Document Summary
Skills from different groups are complementary in the production process. Ethno-linquistic group- identified by a language only in some cases and in other cases by language only in some cases and in other cases and in other cases by language and skin color or other physical attributes. Diversity can affect economic choices by directly entering individual preferences. Individuals may attribute positive utility to the well being of members of their own group and negative utility to that of members of other groups. Diversity can affect economic outcomes by influencing the strategies of individuals. People differ in their productive skills and the way they interpret problems and use their cognitive abilities to solve. Economists have started to pay attention to the effect of racial fragmentation across countries. More racially fragmented countries grow less and that this factor is a major determinant of africa"s poor economic performance. Democracies manage to cope with diversity better.