Alesina, Alberto, Michalopoulos, Stelios and Papaioannou, Elias (2013) Ethnic inequality. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2013 (Number 155).

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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 betweenethnic-
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.

Item Type:	Working or Discussion Paper (Working Paper)
Alternative Title:
Subjects:	D History General and Old World > DT Africa H Social Sciences > HB Economic Theory H Social Sciences > HN Social history and conditions. Social problems. Social reform
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Economic development -- Africa, Ethnicity -- Africa
Series Name:	CAGE Online Working Paper Series
Publisher:	Department of Economics, University of Warwick
Place of Publication:	Coventry, UK
Official Date:	September 2013
Volume:	Volume 2013
Number:	Number 155
Number of Pages:	70
Status:	Not Peer Reviewed
Publication Status:	Published

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