Unveiling the Cosmic Race: Racial Inequalities in Latin America *

Luis Guillermo Woo-Mora
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Luis Guillermo Woo-Mora: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Authors registered in the RePEc Author Service: L. Guillermo Woo Mora

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Abstract: This paper uses skin tone and income information for over a hundred thousand individuals across 31 Latin American countries to study racial inequalities during the last decade. First, I estimate the welfare consequences of racial inequality. Subnational regions with higher income inequality between racial groups have worse economic development. Next, I provide evidence of a skin tone income premium. In an eleven-color palette, each darker shade in skin tone on average leads to a 3% decrease in income, with heterogeneity across countries. My analysis suggests racial discrimination is the main mechanism behind this income premium.

Keywords: Race; Inequality; Economic Development; Discrimination (search for similar items in EconPapers)
Date: 2022-03
New Economics Papers: this item is included in nep-lam and nep-pke
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03693205v1
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Working Paper: Unveiling the Cosmic Race: Racial Inequalities in Latin America * (2022)
Working Paper: Unveiling the Cosmic Race: Racial Inequalities in Latin America * (2022)
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