Advanced Search
MyIDEAS: Login to save this paper or follow this series

Ethnicity and Earnings in Urban Peru

Contents:

Author Info

  • Nopo, Hugo

    ()
    (Inter-American Development Bank)

  • Saavedra, Jaime

    ()
    (World Bank)

  • Torero, Maximo

    ()
    (International Food Policy Research Institute)

Abstract

In this paper we study the relationship between ethnic exclusion and earnings in Urban Peru. Our approach to the concept of ethnicity involves the usage of instruments in many of its several dimensions: mother tongue, parental background, religion, migration events and race. In order to approximate what can be called racial differences in a context like the Peruvian in which “racial mixture” is the main characteristic of the population, we use a scorebased procedure to capture both the differences and the mixtures. By means of this procedure each individual is assigned intensities by pollsters in each of the four categories that correspond to the most easily recognized distinct racial groups in the Peruvian society: Asiatic, White, Indigenous, and Black. We find that the multidimensional race indicator is correlated with several human capital and physical capital assets, as well as with access to public services. Using an extension of the Blinder-Oaxaca (B-O) decompositions to allow comparisons among infinitely many groups, we find that a substantial part of the earnings differences between racial groups cannot be explained by differences in individual characteristics. The results suggests that among wage earners after controlling for a large set of characteristics, there are racially related earnings differences in favor of predominantly White individuals. In the case of the self-employed, none of the empirical distributions of earning differences attributable to race is substantially above zero.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp980.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 980.

as in new window
Length: 24 pages
Date of creation: Jan 2004
Date of revision:
Handle: RePEc:iza:izadps:dp980

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: minorities; semi-parametric; race discrimination; wage differentials;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Barsky R. & Bound J. & Charles K.K. & Lupton J.P., 2002. "Accounting for the Black-White Wealth Gap: A Nonparametric Approach," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 663-673, September.
  2. Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Cahiers de recherche 9406, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  3. Edward Telles & Nelson Lim, 1998. "Does it matter who answers the race question? Racial classification and income inequality in Brazil," Demography, Springer, vol. 35(4), pages 465-474, November.
  4. Hugo R. Ñopo, 2009. "The Gender Wage Gap in Peru 1986-2000: Evidence from a Matching Comparisons Approach," IDB Publications 6763, Inter-American Development Bank.
  5. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
  6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  7. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, June.
  8. Ruthanne Deutsch & Andrew Morrison & Hugo Nopo & Claudia Piras, 2005. "Working Within Confines: Occupational Segregation By Sex For Three Latin American Countries," The IUP Journal of Applied Economics, IUP Publications, vol. 0(3), pages 50-59, May.
  9. Horowitz, Joel L., 2001. "The Bootstrap," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 52, pages 3159-3228 Elsevier.
  10. Scalera, Domenico & Zazzaro, Alberto, 2001. "Group reputation and persistent (or permanent) discrimination in credit markets," Journal of Multinational Financial Management, Elsevier, vol. 11(4-5), pages 483-496, December.
  11. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-54, July.
  12. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
  13. Chiswick, Barry R, 1988. "Differences in Education and Earnings across Racial and Ethnic Groups: Tastes, Discrimination, and Investments in Child Quality," The Quarterly Journal of Economics, MIT Press, vol. 103(3), pages 571-97, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Patricio Valenzuela & Hugo R. Ñopo, 2007. "Becoming an Entrepreneur," IDB Publications 6844, Inter-American Development Bank.
  2. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  3. Máximo Torero & Marco Castillo & Ragan Petrie, 2008. "Ethnic and Social Barriers to Cooperation: Experiments Studying the Extent and Nature of Discrimination in Urban Peru," Research Department Publications 3246, Inter-American Development Bank, Research Department.
  4. Hugo R. Ñopo, 2007. "An Extension of the Blinder-Oaxaca Decomposition to a Continuum of Comparison Groups," IDB Publications 6850, Inter-American Development Bank.
  5. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
  6. Hugo Nopo & Martin Moreno & Jaime Saavedra & Maximo Torero, 2003. "Gender and Racial Discrimination in Hiring: A Pseudo Audit Study for Three Selected Occupations in Metropolitan Lima," Middlebury College Working Paper Series 0404, Middlebury College, Department of Economics.
  7. Harry Anthony Patrinos & Emmanuel Skoufias, 2007. "Economic Opportunities for Indigenous Peoples in Latin America : Conference Edition," World Bank Other Operational Studies 8019, The World Bank.
  8. Juan Pablo Atal & Hugo R. Ñopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IDB Publications 5398, Inter-American Development Bank.
  9. Risso Brandon, Fiorella & Pasquier-Doumer, Laure, 2013. "Aspiration failure: a poverty trap for indigenous children in Peru?," Economics Papers from University Paris Dauphine 123456789/12016, Paris Dauphine University.
  10. Laure Pasquier-Doumer, 2005. "Perception de l’inégalité des chances et mobilités objective et subjective:une analyse à partir d’entretiens qualitatifs auprès de Liméniens," Working Papers DT/2005/17, DIAL (Développement, Institutions et Mondialisation).
  11. Lourdes Gallardo & Hugo R. Ñopo, 2009. "Ethnic and Gender Wage Gaps in Ecuador," IDB Publications 6765, Inter-American Development Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp980. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.