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All Journal Economic Journal of Emerging Markets Journal of Indonesian Economy and Business Jurnal Ekonomi & Studi Pembangunan JDE (Journal of Developing Economies) Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara
Muhammad Ryan Sanjaya
Universitas Gadjah Mada
Economics, Econometrics & Finance Social Sciences

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Journal : Jurnal Ekonomi

 1 
New Evidence on Ethnic Diversity and Social Capital in Indonesia Sanjaya, Muhammad Ryan
Jurnal Ekonomi & Studi Pembangunan Vol 23, No 1: April 2022
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/jesp.v23i1.13863

Abstract

This study analyzes the relationship between the various measures of ethnic diversity and social capital in Indonesia, particularly trust and tolerance (towards other religions and other ethnic groups), using a nationally representative survey. The 2009 National Socioeconomic Survey asked almost 300 thousand individuals on social capital from the 2010 population census data used to construct measures of ethnic and religious diversity. The study’s main contribution to the literature is the inclusion of ethnic similarities in the construction of these diversity variables using linguistic tree data taken from Ethnologue. Using the multiple linear regression method, the study found that all measures of diversity are negatively associated with trust but are positively associated with tolerance, even after controlling for individual-, household- and district-level characteristics. Anticipating the possibility of endogeneity in the diversity variables, this study uses geographical variables to instrument these variables. Nevertheless, the use of the instrumental variable regression method does not change the main result.
Co-Authors Permana, Yudhistira Hendra Rijadh Djatu Winardi Wijayanti, Amanda Wisnu Setiadi Nugroho