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 significant barrier to economic development. The precise measurement and interpretation of these results are a matter of substantial controversy. In this book, the dynamics of ethnic diversity are being empirically analyzed for the first time. Furthermore, it develops and applies a new measure of ethnic...