Journal of Political Studies, Vol. 25, Issue - 1, 2018, 181:198 __________________________________ *Authors are Assistant Professor and Incharge, Department of Economics, University of the Punjab Lahore, Research associate, Punjab Economic Research Institute (PERI) and Associate Professor, National College of Business Administration and Economics, Lahore (Pakistan). An Empirical Analysis of Globalization, Diversity and Social Cohesion Kalsoom Zulfiqar, Muhammad Nadeem, Zahid Pervaiz Abstract Social cohesion is not only desired for societal and political constancy but a pre- requisite for sustainable economic growth and development as well. There are several factors which can mark social solidity. Current study employs the Least Squares Dummy Variables (LSDV) technique to discover the effect of globalization, diversity and income inequality on social cohesion. The analysis is conducted for several developed and developing economies, using panel data from 1990 to 2010. The results demonstrate that globalization has a substantial negative impact on social cohesion. Both diversity and Inclusiveness boost social cohesion however diversity is relatively more important in developed countries. Income inequality is also found to be detrimental for social cohesion particularly in developing countries where certain segment of population is already living below subsistence level. Keywords: social cohesion, globalization, inequality, diversity, JEL classification: F6, D63, D7 Introduction Social cohesion is often viewed as a political term or attractive slogan, which is used and militarized by policy-makers to capture a sense of idealized closeness within society (Bernard 1999). The multidimensional nature of the concept has resulted in a number of definitions which designate differences of content as uttered through the tagging of the dimensions of the impression. Jenson (1998) specified social cohesion in terms of belonging, inclusion, participation, recognition and legitimacy. Berger- Schmitt (2000:7) argue that “elements of a society's social cohesion form an integral part of the quality of life experienced by individuals – including perceived inequalities in the work-place, school or neighborhood – and that 'quality of life represents the common overarching policy goal with social cohesion as an important component to be addressed”. United Nations (2012) suggested social inclusion to consist of three constituents’ social inclusion, social capital and social mobility. “Social inclusion refers to the degree to which all citizens can participate on equal footing in the economic, social and political life, including whether people are protected in times of need. Social capital refers to trust between people and in institutions and the sense of belonging to a society. Social mobility refers to equality of opportunity to get ahead” . More cohesive societies are not only considered better places to live in but also ensure effective state management.