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Ethnicity and Earnings in a Mixed-Race Labor Market

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Author Info

  • Hugo Ñopo
  • Jaime Saavedra
  • Máximo Torero

Abstract

This study examines the relationship between earnings and racial differences in a context in which various races have coexisted and mixed during several centuries, as is true in many parts of the postcolonial world and specifically urban Peru. Coarse indicators of racial differences do not suffice in capturing this relationship; therefore, we introduce a score-based procedure of white and indigenous racial intensities that allows us to approximate these mixed racial heritages. We introduce a score-based procedure of white and indigenous racial intensities that allows us to approximate the heterogeneity within the mestizo population. We construct two types of indicators of racial intensities using a score-based procedure: a single-dimensional indicator of degrees of whiteness and a two-dimensional indicator combining degrees of both whiteness and indigenousness. This second indicator allows us to study nonlinearities in earning differences across mixed white and indigenous racial characteristics. Our estimates from a semiparametric model show evidence of a race premium for whiteness on earnings, statistically significant among wage earners but not among the self-employed. These results may be consistent with a story of employer discrimination.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 55 (2007)
Issue (Month): ()
Pages: 709-734

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Handle: RePEc:ucp:ecdecc:v:55:y:2007:p:709-734

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. Nopo, Hugo & Valenzuela, Patricio, 2007. "Becoming an Entrepreneur," IZA Discussion Papers 2716, Institute for the Study of Labor (IZA).
  2. Ñopo, Hugo, 2008. "An extension of the Blinder-Oaxaca decomposition to a continuum of comparison groups," Economics Letters, Elsevier, vol. 100(2), pages 292-296, August.
  3. Moreno, Martín & Ñopo, Hugo & Saavedra, Jaime & Torero, Máximo, 2012. "Detecting Gender and Racial Discrimination in Hiring Through Monitoring Intermediation Services: The Case of Selected Occupations in Metropolitan Lima, Peru," World Development, Elsevier, vol. 40(2), pages 315-328.
  4. Hugo Ñopo, 2007. "Una Extensión de la Descomposición de Blinder-Oaxaca a un Continuo de grupos en Comparación (An Extension of the Blinder-Oaxaca Decomposition to a Continuum of Comparison Groups)," Research Department Publications 4533, Inter-American Development Bank, Research Department.
  5. Hugo Ñopo & Patricio Valenzuela, 2007. "Convirtiéndose en empresario," Research Department Publications 4520, Inter-American Development Bank, Research Department.

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