Ethnic Inequality

72 Pages Posted: 3 Nov 2012 Last revised: 30 Jan 2023

See all articles by Alberto F. Alesina

Alberto F. Alesina

Harvard University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Stelios Michalopoulos

Brown University - Department of Economics; Brown University

Elias Papaioannou

London Business School; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2012

Abstract

This study explores the consequences and origins of between-ethnicity economic inequality both across and within countries. First, combining satellite images of nighttime luminosity with the historical homelands of ethnolinguistic groups we construct measures of ethnic inequality for a large sample of countries and show that the latter is strongly inversely related to comparative development. Second, differences in geographic endowments across ethnic homelands explain a sizable portion of ethnic inequality contributing to its persistence over time. Third, exploiting across-district within-African countries variation using individual-level data on ethnic identification and well-being from the Afrobarometer Surveys we find that between ethnic-group inequality is systematically linked to regional under-development. In this sample we also explore the channels linking ethnic inequality to (under) development, finding that ethnic inequality maps to political inequality, heightened perceptions of discrimination and undersupply of public goods.

Suggested Citation

Alesina, Alberto F. and Michalopoulos, Stelios and Papaioannou, Elias, Ethnic Inequality (November 2012). NBER Working Paper No. w18512, Available at SSRN: https://ssrn.com/abstract=2170635

Alberto F. Alesina (Contact Author)

Harvard University - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Stelios Michalopoulos

Brown University - Department of Economics ( email )

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Brown University ( email )

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Elias Papaioannou

London Business School ( email )

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Centre for Economic Policy Research (CEPR) ( email )

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