A Smart Solution to the Diversity Dilemma
By Jason Richwine
Wednesday, August 12, 2009
Filed under: Culture, Government & Politics, Numbers, Public Square

Science is telling us that ethnic diversity causes significant
problems by diminishing valuable social capital. What then should we
do about it?

It was not the kind of message a Harvard seminar expects to hear.
Ethnic diversity causes a lot of problems, our guest speaker told us.
It reduces interpersonal trust, civic engagement, and charitable
giving. It causes us to disengage from society, like turtles shrinking
into their shells, reducing our overall quality of life. The more
diversity we experience in our lives, the less happy we are.

I came to Harvard to study public policy in the fall of 2004. All of
the first-years like me had to take a special seminar class where we
would discuss the philosophy of science and the nature of good
research. The best class days featured established scholars who would
come to present their own papers, which were real-life examples of
good research.

The guest speaker who came to discuss diversity was political
scientist Robert Putnam, who is something of a celebrity in academic
circles. With the publication of his 1995 article “Bowling Alone,”
Putnam helped bring the issues of social trust and civic participation
to the forefront of social science. His article became a popular book,
also called Bowling Alone, in 2000. Written for a general audience,
the book chronicled the rapid decline in civic engagement that had
taken place in the United States since 1950, and argued that
communities without strong social ties are less happy and less
successful. The article and the book garnered Putnam numerous media
appearances and spawned reams of response articles in academia.

Putnam began by telling us about one result he encountered that was
thoroughly upsetting to him—the more ethnically diverse a community
is, the less social capital it possesses. When a person lives in a
diverse community, he trusts everyone less, including those of his own
ethnic group.
So how did Putnam come to conclude that ethnic diversity is so
problematic? The answer begins with the notion of “social capital,”
which Putnam defines in simple terms—“social networks and the
associated norms of reciprocity and trustworthiness.” Social capital
turns out to be an exceptionally valuable commodity. Building complex
networks of friends and associates, trusting others to keep their
word, and maintaining social norms and expectations all grease the
wheels of business by enabling cooperation.

But the value of social capital goes well beyond economics. Many of
the activities from which people draw the most deep and lasting
satisfactions are stronger and more prevalent in areas with high
social capital. People living in these places tend to have more
friends, care more about their community, and participate more in
civic causes. Where social capital is greater, Putnam says, “children
grow up healthier, safer, and better educated; people live longer,
happier lives; and democracy and the economy work better.”

After Bowling Alone, Putnam’s next step was to determine why some
communities have more social capital than others. To find out, he
helped organize a large nationwide survey of social capital indicators
that sampled about 30,000 people from a broad array of cities, towns,
and rural areas. By collecting demographic information about the
individuals and the places they lived, Putnam hoped to gain insight
into what makes for a trusting and neighborly community.

When he spoke to my class in 2004, Putnam had started to analyze the
survey data, but he had not yet published any findings. He began by
telling us about one result he encountered that was thoroughly
upsetting to him—the more ethnically diverse a community is, the less
social capital it possesses. When a person lives in a diverse
community, he trusts everyone less, including those of his own ethnic
group. In describing the behavior of people in diverse areas, Putnam
told us to imagine turtles hiding in their shells.

Putnam told us that ethnic diversity is not merely correlated with
certain community problems—it causes them.
Putnam walked us through how he came to his conclusion. At first, it
was just a simple correlation. Looking at his list of the most
trusting places, Putnam found whole states such as New Hampshire and
Montana, rural areas in West Virginia and East Tennessee, and cities
such as Bismarck, North Dakota and Fremont, Michigan. Among the least
trusting places were the cities of Los Angeles, San Francisco, and
Houston. The most trusting places tended to be homogenously white,
while the least trusting places were highly diverse.

Putnam told us he had been fairly certain the correlation would go
away once other factors were taken into account. But it didn’t. He
entered a long list of control variables into regression analyses that
predict elements of social capital such as neighborly trust and civic
participation. Many factors—especially younger age, less education,
and higher poverty and crime rates—seem to damage community relations.
But none of these factors could explain the robust, negative
relationship between ethnic diversity and social capital. Sounding
almost defeated, Putnam told us that ethnic diversity is not merely
correlated with certain community problems—it causes them.

After finishing his presentation of the data, Putnam began a class
discussion. He asked us whether we thought that all relevant
scientific findings, no matter how disagreeable, deserve a public
airing. Perhaps he was just trying to get us to think about difficult
issues, but Putnam seemed genuinely conflicted himself. His concerns
were rooted, understandably, in his personal politics. A man of the
Left, he told us that he was deeply worried about being seen as
advocating some form of “ethnic cleansing,” or being associated with
the far Right in general.

It is clear that smarter people tend to value and participate in the
political process more.
Whether he really valued our advice or not, I remember stating my own
view, which is that democracy and freedom are built on the assumption
that ordinary people can and will process important information. Self-
censorship reminds me of Plato’s philosopher-kings telling “noble
lies” to the unwise masses. If we take self-government seriously, then
important information should be made available to all.

I’m not sure whether Putnam agrees with me, but he did finally publish
some of his findings in a 2007 article. Though he began the article
with some questionable reassurances that diversity offers long-run
benefits, he pulled no punches in regard to its many “short-run”
costs. He warned in particular that immigration makes the United
States and Europe more diverse every year, and that incorporating
immigrants into our communities would be one of the central challenges
of the 21st century.

The public reaction to this was surprisingly quiet. Some reporters
summarized the findings, but the issue quickly disappeared from the
pages of newspapers and magazines. Among academics already familiar
with Putnam’s work, there was perfunctory agreement that our society
needed to work harder to foster community, but few new ideas were ever
offered. Anecdotally, most scholars outside of Putnam’s field, not to
mention the general public, have never even heard of his most recent
findings.

Higher IQ people appear to be more morally sophisticated, altruistic,
and forward-looking. They exhibit higher levels of civic
participation, more strongly adhere to middle-class behavioral
standards, and cooperate more readily.
Consider how surprising this is. Achieving diversity, especially
ethnic diversity, is an explicit goal of virtually all major
corporations, universities, and government agencies. The U.S. Supreme
Court has declared that diversity is a “compelling state interest”
that overrides legal prohibitions on race-based school admissions. Top
politicians routinely utter some version of the phrase “diversity is
our strength” in speeches. Our immigration policy even features a
“diversity lottery” that randomly offers green cards to foreign
nationals whose primary qualification is that they come from exotic
countries. Two years after Putnam wrote publicly about diversity’s
problems, and at least five years since he has been presenting his
findings informally, nothing has changed. We still treat diversity as
an unqualified good.

The sensitivity of the topic probably discourages an honest
conversation about the problems of diversity, but it is difficult to
come up with solutions when we do not talk about the problem. So let’s
have the discussion, considering all the evidence. Eventually, we
should work toward an objective accounting of diversity’s strengths
and weaknesses. The results could tell us how much (if any) further
ethnic diversity is worth pursuing.

My goal here is a more modest one, which is to explore how we can use
immigration policy to make future diversity, whatever level we choose,
more manageable. I am going to assume that some amount of immigrant
diversity is valuable or inevitable, or both. Given that assumption,
our goal should be to carefully select diverse immigrants who do the
least harm to social capital. If immigrants could possess certain
characteristics that tend to increase social capital, then the impact
of ethnic diversity could be at least partially mitigated.

People in less intelligent populations will be less willing to set up
networks for potential long-term payoffs, make personal investments in
the community, and follow basic norms of behavior with the expectation
of future reciprocity.
I intend to focus on one such important characteristic—how smart the
immigrants are. Intuitively, it is not a stretch to believe that
smarter people are better at organizing networks and understanding the
long-term benefits of cooperation, and a burgeoning academic
literature confirms that intuition. IQ, a construct that psychologists
use to estimate general intelligence, has been separately linked to
elements of social capital, such as sophisticated ethical thinking,
altruism, planning for the future, political awareness, adherence to
informal community standards of behavior, and cooperation for the
greater good. Despite this research, the direct link between
intelligence and social capital has been drawn only in a handful of
technical articles. It is time to bring the IQ-social capital link out
of the academic journals and into the policy debate. Doing so could
help us deal realistically with the problems Putnam has identified.



-------------------

The social attitudes of citizens are the building blocks of social
capital, and IQ plays a role in shaping many of them. For example,
psychologists have developed measures of moral reasoning that overlap
substantially with IQ. When confronted with a moral dilemma, a person
operating at the lowest level of moral reasoning would consider only
his own self-interest. As moral reasoning becomes more sophisticated,
people tend to give more consideration to community welfare, and to
apply abstract principles to resolve moral dilemmas. Because of the
cognitive demands of such reasoning, smarter people are much more
likely to transcend simple self-interest in their ethical thinking.
People who do so are likely to be better neighbors and better
citizens.

Intelligent people are also likely to be more altruistic, which could
help form tighter bonds within communities. In one recent study,
researchers presented a group of undergraduates with a series of
situations in which they get one amount of money and a stranger gets
another amount. Then they had the undergraduates rank their order of
preference for each situation as the amounts of money change.
Altruistic people were defined as those who preferred less money for
themselves in order for a stranger to receive a higher amount. The
most altruistic people scored nearly 8 points higher on an IQ test
than the least altruistic people.

Skill selection is a desirable way of addressing the problem of ethnic
diversity because it is already a policy option on the table.
Another trait important for maintaining social networks is the
willingness to plan for the future rather than live for the moment.
Last year, two Yale psychologists systematically reviewed the best
studies of the relationship between IQ and “delay discounting,” which
means acting impulsively. The typical experiments surveyed by the
authors involved a series of hypothetical offers of cash (or some
other reward) made to participants with known IQ scores. Each offer
would consist of a lesser reward in the present versus a larger reward
at some future date. The authors of the survey concluded that higher
IQ people are almost always found to be less impulsive.

It makes intuitive sense that smarter people should be able to
internalize future rewards more easily. They are probably more future-
oriented because they can better manipulate their surroundings,
whereas incompetent people exert less control on their future, making
it murky and unknown. Whatever the cause, the impulsivity of low-IQ
people has serious implications for social capital. People in less
intelligent populations will be less willing to set up networks for
potential long-term payoffs, make personal investments in the
community, and follow basic norms of behavior with the expectation of
future reciprocity.

We have seen that smarter people tend to be more ethically
sophisticated, altruistic, and future-oriented. All of these traits
are theoretically useful for creating social capital, but are smart
people actually better citizens and neighbors in practice? For real-
world evidence, we should turn first to civic participation, a major
component of social capital. Various survey data indicate that IQ is
an important and independent predictor of voting, membership in
various social organizations, daily newspaper reading, and tolerance
of free speech rights. It is clear that smarter people tend to value
and participate in the political process more.

Outside of politics, a revealing behavioral link between IQ and social
capital comes from The Bell Curve. Many people remember Richard
Herrnstein and Charles Murray’s controversial bestseller for its
discussion of racial differences in IQ, but the book was mainly about
the ways in which a person’s intelligence helps to shape his attitudes
and behaviors.

One of the behavioral measures the authors examined was something they
called the middle-class values (MCV) test. People pass the MCV test if
they do all of the following—graduate from high school, avoid jail,
stay married to a first spouse, maintain employment, and wait until
marriage to have children. There are no formal laws against
illegitimacy, divorce, or idleness, but there is a stigma against
these behaviors among middle-class people. People who pass the MCV
test are obeying social norms whose strength depends not on law
enforcement but on social capital. They are following an implicit
social contract. In Herrnstein and Murray’s words, middle-class values
reflect “ways of behaving that produce social cohesion and order.”

Herrnstein and Murray divided people into five cognitive classes based
on their performance on an IQ test. Among people in the highest
cognitive class, 74 percent passed the MCV test, but just 16 percent
passed in the lowest class. This relationship between IQ and middle-
class values remained strong even when the authors compared people who
grew up in the same household environments.

The last and most important behavioral link between IQ and social
capital is cooperation. Garett Jones, an economist at George Mason
University, recently authored a clever study of prisoner’s dilemma
games played on college campuses. The game usually involves two people
who could achieve the best overall payoff through cooperation, but who
are each tempted to betray the other for a greater personal gain. The
catch is that both players betraying each other results in the worst
possible outcome for each. It is easy to see how selfishness and
suspicion can ruin the chances for cooperation in this scenario.

Prisoner’s dilemma games have been played as experiments on college
campuses to test all sorts of hypotheses over the years. The key
insight made by Jones is that average SAT scores for each college are
known, and the SAT is a good proxy for IQ. Jones correlated the
proportion of students who cooperated in the prisoner’s dilemma at
each college with the average SAT score of the college.

He found a substantial and robust correlation. To illustrate, schools
with SAT scores around the national average of 1000 cooperated about
30 percent of the time when faced with the prisoner’s dilemma. Top-
flight colleges with average SAT scores around 1450 cooperated about
51 percent of the time. The study strongly suggests that groups with
higher levels of intelligence are better at cooperating, and
cooperation is one of the most important elements of social capital.

In summary, higher IQ people appear to be more morally sophisticated,
altruistic, and forward-looking. They exhibit higher levels of civic
participation, more strongly adhere to middle-class behavioral
standards, and cooperate more readily. This evidence, taken as a
whole, confirms that intelligence and social capital are strongly
related.



-------------------

Some clear policy implications follow. What we want are immigrants who
are most likely to be cooperative, trustworthy, and concerned about
the welfare of the community. No one has any simple, reliable way of
ascertaining whether an individual possesses these qualities. But we
do have a simple, reliable way of measuring another quality that is
correlated with them—cognitive ability, as measured by an IQ test or
an educational credential. The smarter our immigrants are, the more
likely they are to trust and cooperate, and the less likely they are
to subtract from our existing stock of social capital. Selecting
immigrants for intelligence (or a proxy indicator like education)
could lessen the negative impact of ethnic diversity on American
society.

This proposal works especially well in the broader debate over
immigration. Many economists have advocated that the United States de-
emphasize family preferences in favor of skill-based selection, much
as Canada and Australia have already done. Though few people ever
describe “skill” selection as a search for people with high IQs,
immigrants with advanced degrees and sought-after talents are usually
quite intelligent.

Skill selection is a desirable way of addressing the problem of ethnic
diversity because it is already a policy option on the table. More
intelligent (or educated) immigrants would be more productive workers,
and they would also have a much less objectionable social impact on
the United States due to their enhanced ability to cooperate. Putnam’s
concerns about deteriorating social capital form another argument for
immigrant skill selection.

When Robert Putnam came to my class five years ago, he presented some
surprising and provocative results. But even more surprising is that
his findings, public for at least two years, have generated so little
substantive discussion among policymakers. The challenge that ethnic
diversity poses to 21st century communities is significant, and
meeting that challenge requires robust public discussion and debate.
That discussion should include not just how we deal with the diversity
of our current population, but how we can ensure future diversity
causes as little harm as possible. Selecting intelligent immigrants is
the smart way to begin.

Jason Richwine is National Research Initiative fellow at the American
Enterprise Institute.
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