Does ethnoracial diversity hinder the delivery of public goods? Many prior studies suggest a connection, often finding that diverse communities provision fewer resources.

This analysis uses new data from Brazilian municipalities to untangle the effects. It argues that previous findings cannot reliably separate homogeneity among dominant groups versus disadvantaged minorities.

Our research reveals something unexpected: while diversity appears linked to public goods in general, more homogeneous Afro-descendant communities actually show lower resource provision. This suggests that simplistic assumptions about diversity being "inefficient" or benefiting from "homogeneity" may be flawed. Our findings specifically challenge the common perception of Brazilian municipal data regarding ethnoracial dynamics and public outcomes.

This means previous conclusions linking local homogeneity to better public services might not hold, particularly when diversity involves specific disadvantaged groups in certain contexts.