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Ethnic Inequality
Alberto Alesina1, Stelios Michalopoulos2, Elias Papaioannou3
1Harvard University, IGIER, CEPR, and NBER.
The Journal of Political Economy
|June 23, 2016
Summary
Ethnic economic inequality between countries is linked to lower development. Geographic disparities in ethnic homelands are a major driver of this inequality and under-development.
Area of Science:
- Economics
- Development Studies
- Political Geography
Background:
- Economic inequality between ethnic groups is a persistent global issue.
- Understanding the drivers of ethnic economic disparities is crucial for development policy.
Purpose of the Study:
- To measure ethnic economic inequality across countries.
- To analyze the relationship between ethnic inequality and economic development.
- To identify the origins of ethnic economic disparities.
Main Methods:
- Utilized satellite nighttime luminosity data and historical ethnolinguistic group homelands to construct ethnic inequality measures.
- Compiled proxies for spatial and regional inequality.
- Employed econometric analysis to assess associations.
Main Results:
- A significant negative correlation was found between ethnic inequality and contemporary comparative development.
- Ethnic inequality persists even when controlling for regional inequality, which is also linked to under-development.
- Differences in geographic endowments across ethnic homelands explain a substantial portion of economic disparities between groups.
Conclusions:
- Ethnic economic inequality is a significant impediment to national development.
- Geographic factors play a critical role in shaping ethnic economic disparities.
- Addressing geographic inequalities within ethnic homelands may foster more equitable development.
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