Roots of Inequality

Oded Galor, Marc Klemp and Daniel Wainstock

No 1283, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: Why does inequality vary across societies? We advance the hypothesis that in a mar- ket economy, where earning differentials re ect variations in productive traits among individuals, a significant component of the differences in inequality across societies can be attributed to variation in societal interpersonal diversity, shaped by the prehistorical out-of-Africa migration. Exploring the roots of inequality within the US population, we find supporting evidence for our hypothesis: variation in the inequality across groups of individuals originating from different ancestral backgrounds can be traced to the degree of diversity of their ancestral populations. This effect is sizable: a move from the lowest to the highest level of diversity in the sample is associated with an increase in the Gini index from the median to the 75th percentile of the inequality distribution.

Keywords: Inequality; Diversity; Culture; Out-of-Africa Migration (search for similar items in EconPapers)
JEL-codes: D60 O10 Z10 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-evo and nep-mig
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Related works:
Working Paper: Roots of Inequality (2023)
Working Paper: Roots of Inequality (2023)
Working Paper: Roots of Inequality (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1283

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