Are minorities free riders? Applying the social resistance framework to public goods production in Central‐Eastern Europe.

One of the key reasons for the scholarly and policy concern about the rising levels of ethnic diversity is its apparently detrimental effect on the production of public goods. Although numerous studies have tackled that issue, there is still much ambiguity as to the precise micro‐level mechanisms underpinning this relationship. In this article, a novel theoretical explanation for this relationship is proposed, building on the social resistance framework. This proposition is tested using a new cross‐sectional public opinion survey covering 14,536 respondents in 817 neighbourhoods across 11 Central Eastern European countries. Analysing national minorities defined by postwar border changes means one can overcome the endogeneity problem faced by research based on immigrant groups. The findings show that it is the combination of a minority group's discrimination and its spatial clustering that makes minorities reluctant to contribute to public goods. The article constitutes a novel theoretical and methodological contribution to the research on the effects of diversity on public goods provision. [ABSTRACT FROM AUTHOR]