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Measuring Ethnic Stratification and its Effect on Trust in Africa

Roland Hodler, Sorawoot Srisuma, Alberto Vesperoni and Noémie Zurlinden

No 7405, CESifo Working Paper Series from CESifo Group Munich

Abstract: We define and axiomatically characterize an index of ethnic stratification that measures the extent to which the hierarchy in socio-economic positions across the individuals of a society follows ethnolinguistic lines. This index generalizes the idea of between-group inequality to situations where data on economic and ethnolinguistic distances between pairs of individuals is available. We define an estimator of our index that takes the form of a second order U-statistic and has well-behaved statistical properties, and we show that ethnic stratification is empirically related to low levels of trust in other people and institutions at the local level in Africa.

Keywords: inequality; ethnic diversity; ethnic fractionalization; trust (search for similar items in EconPapers)
JEL-codes: D31 D63 Z13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr and nep-ure
Date: 2018
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