Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru

Manuel Barron

Revista Economía, 2008, issue 61, 51-80

Abstract: According 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.

Keywords: inter-ethnic inequality; exclusion; hurdle models. (search for similar items in EconPapers)
JEL-codes: C24 J31 O15 (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru (2008)
Working Paper: Exclusion and discrimination as sources of inter-ethnic inequality in Peru (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:pcp:pucrev:y:2008:i:61:p:51-80

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