Using a nationally representative sample from Ethiopia’s Demographic and Health Survey
2011 (EDHS-2011) and applying instrumental variables estimators, this paper provides new
evidence on the link between ethnic heterogeneity and child health outcomes. Contrary to the
long-held view that ethnic fractionalisation hampers collective efficacy, undermines
provision of local public goods and negates social and economic benefits associated with
them, our study shows that children in relatively diverse communities are better nourished
and more likely to receive full vaccination. There is also some evidence that women in
ethnically diverse communities are better informed about health issues and more empowered
in making health care decisions than their counterparts in homogenous communities. Our
results have an important implication for policy. Politicians and policy makers should
promote inclusion and intergroup tolerance through legal and institutional support.