What drives the quality of schools in Africa? Disentangling social capital and ethnic divisions

Two important lines of research have shaped our understanding of the ability of communities to engage in collective action. The first proposes ethnic division as a key determinant, with more ethnically-heterogeneous countries having worse economic performance and fewer public goods. The second focuses on social capital as a major determinant of the ability to engage in collective action. We expect trust among community members, a widely-used measure of social capital, to be an important and positive determinant of school quality. Our work here aims to disentangle the relative effects of ethnic fractionalization and social capital on school quality. We instrument both social capital and ethnic fractionalization by using historical information on the settlement patterns of ethnic groups in Sub-Saharan Africa. Our empirical strategy is implemented by combining four datasets, including district-level Afrobarometer data, covering 16 Sub-Saharan countries. We find a large positive effect of trust on practical aspects of schooling, such as maintaining buildings or providing textbooks. In sharp contrast, ethnic fractionalization is found to have a very limited effect, if any. We propose a simple model of public-good provision that explores a channel by which social capital and ethnic division may (or may not) affect the provision of local public goods such as schools.