Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
AbstractAccording to the 2003 National Household Survey, mean labour income for an indigenous worker is only 56% of that for a non-indigenous worker. Studies of ethnic discrimination in Peru’s labour markets generally find that discrimination is too low to explain inequalities of this magnitude. However, Sigma Theory (Figueroa 2003) predicts that social exclusion is a source of inter-ethnic inequality, and that has not been empirically tested. The primary aim of this paper is to fill this gap by estimating the extent to which exclusion and discrimination contribute to income inequality. Hurdle models are used to tackle down econometric endogeneity of years of schooling and truncation-at-zero of incomes. The results imply that exclusion plays a stronger role on inequality than discrimination: without exclusion, the Gini of labour income would decrease from 0.64 to 0.45, and without discrimination it would be reduced to 0.50.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10456.
Date of creation: Jun 2008
Date of revision:
inter-ethnic inequality; exclusion; hurdle models;
Other versions of this item:
- Manuel Barrón, 2008. "Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru," Revista Economía, Departamento de Economía - Pontificia Universidad Católica del Perú, issue 61, pages 51-80.
- Manuel Barrón, 2006. "Exclusion and discrimination as sources of inter-ethnic inequality in Peru," Documentos de Trabajo 2006-253, Departamento de Economía - Pontificia Universidad Católica del Perú.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
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- Juan Pablo Atal & Hugo Nopo & Natalia Winder, 2009.
"New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America,"
Research Department Publications
4640, Inter-American Development Bank, Research Department.
- Nopo, Hugo & Atal, Juan Pablo & Winder, Natalia, 2010. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IZA Discussion Papers 5085, Institute for the Study of Labor (IZA).
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