Immigration, ethnic diversity and public goods provisioning: Evidence from rural communities in Uganda

Abstract

A considerable body of literature suggests that immigration undermines voluntary contributions to public goods because it leads to ethnic diversity, which erodes social trust. This article posits that the effect of immigration outweighs that of ethnic diversity, so that immigration may explain why ethnic diversity is negatively associated with social trust and public goods provisioning. I also highlight a need to emphasize the moderating influence of transaction costs when analyzing provisioning problems associated with immigration and ethnic diversity. To examine my hypotheses, I use a mixed-method research design to study public goods management in randomly selected communities in rural Uganda whose rates of immigration and levels of ethnic diversity vary. I analyze community-level attempts at collective action that involve substantially different costs; that is, contributing to toilet construction and participating in litter pickup programs. The findings suggest that socio-political barriers to collective action for public goods provisioning may have less to do with the stock of demographic diversity than the flow rate of demographic change. The same findings suggest a more micro-level explanation that transcends the erosive effects (of immigration and ethnic diversity) on social trust to emphasize the moderating influence of transaction costs.