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We investigate the empirical relationship between ethnicity andculture, defined as a vector of traits reflecting norms, values, andattitudes. Using survey data for 76 countries, we find that ethnicidentity is a significant predictor of cultural values, yet that withingroupvariation in culture trumps between-group variation. Thus,in contrast to a commonly held view, ethnic and cultural diversityare unrelated. Although only a small portion of a country's overallcultural heterogeneity occurs between groups, we find that variouspolitical economy outcomes (such as civil conflict and public goodsprovision) worsen when there is greater overlap between ethnicityand culture.