Abstract
Ethnic and linguistic heterogeneity are widely studied as determinants of social capital, conflict, and institutional quality. In many cultures, another important dimension of heterogeneity is family clan membership. I study the relationship between family clan diversity in South Korean villages and the voluntary production of public goods and contributions of private resource for village projects. Under the 1970-1971 New Village Beautification Project, the government distributed resources to each village for the production of village public goods. Subsequently, the government systematically evaluated how well these resources were applied. I combine these data with information on village family clan structures collected by the Japanese Colonial Government, as well as records of land donations for village projects between 1970 and 1980. I find an inverted-U-shaped effect of group heterogeneity on the improvement of public goods.
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