Measuring Ethnic Stratification and its Effect on Trust in Africa
56 Pages Posted: 21 Feb 2019
Date Written: 2018
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
JEL Classification: D310, D630, Z130
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