Measuring Cultural Diversity: Ethnic, Linguistic and Religious Fractionalization in the OECD

Many claim that national economic success depends upon cultural homogeneity. We collect new time-series data and develop new measures of ethnic, linguistic and religious fractionalization for the OECD countries. We show that cultural diversity may vary by type across countries and over short periods of time. We also show that our measure of ethnic fractionalization is a significant predictor of economic performance in OECD countries despite the fact that they constitute a particularly homogeneous and economically advantaged group.