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

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, Si...

Full description

Bibliographic Details
Main Author: Manuel Barrón
Format: Article
Language:English
Published: Pontificia Universidad Católica del Perú 2008-03-01
Series:Economía
Subjects:
Online Access:http://revistas.pucp.edu.pe/index.php/economia/article/view/486
_version_ 1818807516721577984
author Manuel Barrón
author_facet Manuel Barrón
author_sort Manuel Barrón
collection DOAJ
description 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.
first_indexed 2024-12-18T19:26:55Z
format Article
id doaj.art-3e3bee7b651b4a76a11368f30d0f8f7e
institution Directory Open Access Journal
issn 0254-4415
2304-4306
language English
last_indexed 2024-12-18T19:26:55Z
publishDate 2008-03-01
publisher Pontificia Universidad Católica del Perú
record_format Article
series Economía
spelling doaj.art-3e3bee7b651b4a76a11368f30d0f8f7e2022-12-21T20:55:51ZengPontificia Universidad Católica del PerúEconomía0254-44152304-43062008-03-013161468Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in PeruManuel Barrón0International Food Policy Research InstituteAccording 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.http://revistas.pucp.edu.pe/index.php/economia/article/view/486inter-ethnic inequalityexclusionhurdle models.
spellingShingle Manuel Barrón
Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
Economía
inter-ethnic inequality
exclusion
hurdle models.
title Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
title_full Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
title_fullStr Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
title_full_unstemmed Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
title_short Exclusion and Discrimination as Sources of Inter-Ethnic Inequality in Peru
title_sort exclusion and discrimination as sources of inter ethnic inequality in peru
topic inter-ethnic inequality
exclusion
hurdle models.
url http://revistas.pucp.edu.pe/index.php/economia/article/view/486
work_keys_str_mv AT manuelbarron exclusionanddiscriminationassourcesofinterethnicinequalityinperu