This paper examines post-WWII population transfers in Poland.

Data & Methods

* Original historical data on migration and economic outcomes following WWII displacement

* Analysis of tax revenue collection, income reporting, and entrepreneurship rates across communities

Key Findings

Polish migrants formed initially homogeneous groups that could provide local public goods through informal enforcement.

Heterogeneous migrant communities relied more heavily upon the state for such provisions during transition.

Following marketization:

* Heterogeneous communities collected higher tax revenues

* Registered greater income and entrepreneurship rates

These outcomes challenge the idea that diversity necessarily hinders economic development.