2013 Alesina Michalopoulos Papaioannu Eth Inequality Slides

Ethnic Inequality
Ethnic Inequality
Alberto Alesina, Stelios Michalopoulos and Elias Papaioannou
Harvard University, Brown University, London Business School
February 2013
NBER Economic Growth Meetings (EFG)
Ethnic Inequality
Introduction
Research Question
Observations
I
Inequality: sizable dierences in economic well-being (income,

education, access to public goods) both across and within
countries
Fractionalization/polarization: dierences in ethnic

(religious, linguistic) composition both across and within
countries
Ethnic Inequality (Intersection of Inequality and Ethnic

Fragmentation)
I
Market dominant minorities
(Chua (2003))
Ethnic Inequality
Introduction
Research Question
Observations
I

countries

countries

Fragmentation)
I
(Chua (2003))
Ethnic Inequality
Introduction
Research Question
Observations
I

countries

countries

Fragmentation)
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(Chua (2003))
Ethnic Inequality
Introduction
Objective
Idea
Document and analyze empirically the patterns of income inequality
Specically :
I
study the relationship between ethnic inequality and

comparative economic development across countries
primary exploration of the origins of ethnic inequality
assess the role of ethnic inequality on income and public

goods provision within countries
Ethnic Inequality
Introduction
Objective
Idea
Document and analyze empirically the patterns of income inequality
Specically :
I
study the relationship between ethnic inequality and

comparative economic development across countries
primary exploration of the origins of ethnic inequality
assess the role of ethnic inequality on income and public

goods provision within countries
Ethnic Inequality
Introduction
Findings
Key Finding
Economic Inequality Across Ethnic Groups
=)
negative correlate of economic performance
This pattern obtains:
1. Across all countries with both contemporaneous and
predetermined proxies of inequality
2. Across districts within countries
(using micro-level data from
Sub-Saharan African countries)
3. Across districts within countries within ethnic groups
(in Africa)
Ethnic Inequality
Introduction
Findings
Key Finding
Economic Inequality Across Ethnic Groups
=)
negative correlate of economic performance
This pattern obtains:
1. Across all countries with both contemporaneous and
predetermined proxies of inequality
2. Across districts within countries
(using micro-level data from
Sub-Saharan African countries)
3. Across districts within countries within ethnic groups
(in Africa)
Ethnic Inequality
Introduction
Ethnic Diversity and Economic Development
Ethnic Diversity - Existing Research

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Theory: Ambiguous eect

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Negative eect: animosity; preferences for public

goods/redistribution
Positive eect: heterogeneous inputs => trade, production
Empirical evidence: clear

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Strong negative correlation between ethnic-linguistic

fragmentation and measures of development (Easterly and Levine, 1997;
Alesina et al. 2003; Alesina, Aghion, and Trebbi, 2004; Desmet et al. 2011; Alesina and La
Ferrara, 2006)
Less clear-cut association with civil conict, though overall a

negative association (Fearon and Laitin, 2003; Montalvo and Reynal-Querol, 2005,
2006)
Ethnic Inequality
Introduction
Income Inequality and Economic Development
Income Inequality - Existing Research

I
Theory: Ambiguous eect

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Negative eect: conict; redistribution; lofty taxation
Positive eect: takeos; externalities; specialization in

high-tech sectors
Non-monotonic: depending on the level of development
(Galor and
Moav (2004))
Empirical evidence: Not clear-cut

I
No robust association with growth, democracy, development

(Benabou, 1996, 2000)
Changes in inequality in any direction are associated with lower

growth (Banerjee and Duo, 2003)
Ethnic Inequality
Introduction
Income Inequality and Economic Development
Our idea
A key aspect of ethnic fractionalization is missing

I
Inequality across ethnic groups
A key aspect of income inequality is missing

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Income inequality across ethnic groups
Ethnic Inequality
Introduction
Ethnic Inequality and Economic Development
Channels
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Ethnic Inequality , Political Inequality =) lower public good

provision; absence of checks and balances.
Ethnic Inequality =) Aspiration trap for the less a- uent

groups =) lower eort
Presence of economically dominant ethnic minorities =)

negative reaction to free market institutions (work in progress)
Ethnic Inequality =) Resentment Between Groups
(work in
progress)
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Ethnic Inequality =) Conict Between Groups
(work in progress)
Ethnic Inequality
Introduction
Ethnic Inequality and Economic Development
Where?
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Ethnic inequality is pervasive in many countries (e.g., Africa,

Asia, elsewhere)
I
Examples (Chua, 2003): Kikuyu in Kenya, I(g)bo in Nigeria,

Lebanese in Western Africa, Chinese minorities in Eastern Asia
Racial Inequality in the US
Zoom in on Africa (results are not driven by Africa)
(Glen Loury)
Most ethnically diverse part of the world
Salience of ethnicity
Detailed regional level on public goods, education, and ethnic

identication (Afrobarometer Surveys)
(Robinson, 2003)
Ethnic Inequality
Introduction
This Paper
The Road Map

1. Construct an index of economic inequality across
ethnic/linguistic groups in all countries
2. Explore association of ethnic inequality with
I
I
Ethnic/linguistic fragmentation
Income inequality
3. Correlation with economic development

4. A primer on the origins of Ethnic Inequality
Heterogeneous geographic ethnic endowments =)
Inequality in development across ethnic homelands
5. Examine within-country variation using household data from

the Afrobarometer Surveys.
Ethnic Inequality
Empirics. Data Construction
Data Sources
Ethnic-Linguistic Homelands
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GREG (digitized version of the Atlas Narodov Mira).

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1,276 ethnic groups around the world.
The information pertains to the 1960s.
Ethnologue.
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7,570 linguistic groups. (though limited coverage for Latin

America)
Early-mid 1990s
Ethnic Inequality
Data Sources
Luminosity
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Satellite images of light density at night (available since 1992)

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Use data in 1992, 2000, 2010
Strong association with:

I
I
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Income growth: Henderson, Storeygaard, and Weil (AER 2012).

Income level: Chen and Nordhaus (PNAS, 2011).
Income level and other proxy measures of well-being. Michalopoulos
and Papaioannou (2012, 2013).
Population estimates at the grid level.

I
Gridded Population of the Worlddataset (GPW, CIESIN,

2005)
1990, 2000
Ethnic Inequality
Data Sources
Luminosity
I
Satellite images of light density at night (available since 1992)

I
Use data in 1992, 2000, 2010
Strong association with:

I
I
I
Income growth: Henderson, Storeygaard, and Weil (AER 2012).

Income level: Chen and Nordhaus (PNAS, 2011).
Income level and other proxy measures of well-being. Michalopoulos
and Papaioannou (2012, 2013).
Population estimates at the grid level.

I
Gridded Population of the Worlddataset (GPW, CIESIN,

2005)
1990, 2000
Ethnic Inequality
Inequality Indexes
New Inequality Measures

I
Ethnic Inequality (Gini coe cient): Inequality in lights per

capita across ethnic (linguistic) homelands
I
I
in 1992, 2000, 2009

with GREG and Ethnologue
Overall spatial inequality (Gini coe cient): Inequality in

lights per capita across arbitrary regions
I
splitting each country in boxes of 2.5 x 2.5 dd (approximately

250 km x 250 km; twice the size of mean ethnic homeland)
Thiessen polygon using as input points the centroids of the
linguistic homelands according to the Ethnologue dataset.
I
Any location within a polygon is closer to its associated point than

to points in other polygons.
Inequality in lights per capita across boxes/pixels and Thiessen

polygons within countries in 1992, 2000, and 2009.
Ethnic Inequality
Inequality Indexes

I

I
I
in 1992, 2000, 2009


I

I


Ethnic Inequality
Inequality Indexes

I

I
I
in 1992, 2000, 2009


I

I


Ethnic Inequality
Inequality Indexes
Ethnic Homelands in Afghanistan - GREG

Ethnic Homelands in Afghanistan
Afghanistan Arabs
Afghans
Arabs of Middle Asia
Baloch
Brahui
Burushaskis
Firoz-Kohis
Hazara-Berberi
Hazara-Deh-i-Zainat
Ishkashimis
Jamshidis
Kazakhs
Kho
Kirghis
Mongols
Nuristanis
Ormuri
Pamir Tajiks
Parachi
Pashai
Persians
Roshanls
Russians
Shugnanis
Taimanis
Tajiks
Teymurs
Tirahi
Turkmens
Uzbeks
Yazghulems
Overlapping Languages
Ethnic Inequality
Inequality Indexes
Lights per Capita across Afghan Ethnicities - GREG
29
70
71
-0
.2
3
14
.0
1
.0
0
-0
15
-0
0.
01
0.
00
08
09
10
.0
0
0.
00
0.
00
.0
0
-0
-0
00
03
0.
00
0.
00
02
Lights per Capita in Ethnic

Homelands in Afganistan
Atlas Narodov Mira
Ethnic Inequality
Inequality Indexes
Spatial Inequality - Boxes/Pixels in Afghanistan
09
3
02
1
-0
.0
01
6
.0
-0
22
0.
00
00
7
.0
-0
17
0.
00
00
3
.0
08
0.
00
04
-0
.0
.0
-0
02
00
-0
0.
00
0.
00
0.
00
00
1
Lights per Capita across

Virtual Countries in Afganistan
Ethnic Inequality
Inequality Indexes
Spatial Inequality - Thiessen Polygons in Afghanistan
Lights per Capita across

Thiessen Polygons
in Afganistan
High : 0.0078
Low : 0
0.
0.
0.
56
47
38
50
76
26
21
91
41
11
51
01
01
81
01
23
68
12
77
64
00
33
28
23
17
09
00
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
0.
93
92
90
86
84
80
76
72
66
61
84
33
90
50
18
52
57
53
01
45
31
91
21
91
41
61
21
51
71
21
0.
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
32
86
31
77
96
.9
.9
.9
.9
.8
.8
.8
.7
.7
.6
.6
.5
.4
77
38
23
09
65
41
05
65
25
60
14
65
77
65
43
39
02
09
84
26
72
35
17
52
02
69
64
31
85
20
70
00
48
00
82
.3
.2
.2
.1
.0
00
.3
-0
-0
-0
-0
-0
-0
-0
0.
Ethnic Inequality
Inequality Indexes
The World Distribution of Ethnic Inequality
Ethnic Inequality Based on the Ethnologue
11
11
71
21
71
81
81
71
31
06
38
49
76
13
43
65
86
81
77
73
72
69
66
75
21
11
33
59
64
0.
0.
0.
0.
0.
0.
0.
0.
0.
31
81
07
52
49
61
21
71
61
71
61
01
02
41
19
0.
0.
0.
73
02
39
61
54
00
35
33
25
21
18
12
00
0.
0.
0.
0.
0.
0.
0.
-0
61
87
92
67
38
38
57
38
60
13
74
37
21
94
66
70
.8
.8
.7
.7
.7
.6
.9
-0
-0
-0
-0
-0
-0
.6
11
0
51
33
97
43
.5
.6
-0
-0
-0
73
22
90
.5
.4
-0
-0
80
26
32
27
96
17
11
9
50
37
50
13
86
.4
.3
.3
.2
.2
.1
00
46
00
25
00
.1
-0
-0
-0
-0
-0
-0
-0
0.
Ethnic Inequality
Inequality Indexes
The World Distribution of Spatial Inequality
Spatial Inequality based on boxes of 2.5 x 2.5 decimal degrees
11
71
11
71
41
31
01
71
81
51
91
81
71
70
28
0.
89
0.
88
11
51
99
29
50
48
71
27
06
65
06
73
88
0.
83
0.
82
0.
76
0.
73
0.
71
0.
69
0.
64
0.
59
0.
54
0.
44
0.
41
49
96
0.
25
0.
35
11
91
51
01
77
77
05
00
0.
22
0.
18
0.
09
0.
00
-0
.9
80
01
51
97
87
91
97
04
83
10
77
68
55
69
38
82
39
22
65
34
17
92
40
96
40
47
.8
-0
.8
-0
-0
.8
-0
.8
-0
.7
-0
.7
-0
.7
-0
.6
-0
.6
-0
.5
-0
.5
-0
.4
65
91
87
59
18
.3
71
79
54
27
87
00
55
00
90
.2
-0
.4
-0
-0
-0
.2
-0
.1
-0
.0
0.
00
Ethnic Inequality
Inequality Indexes
Ethnic Inequality Net of Spatial Inequality
Ethnic Inequality Partialling Out Spatial Inequality; Ethnologue
Ethnic Inequality
Inequality Indexes
The World Distribution of Spatial Inequality

I
Inequality across Ethnic-Linguistic Homelands

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High Gini ( > 0.90) in Sudan, Chad, Afghanistan, Laos, and

Myanmar
Low Gini in Ireland, Kuwait, Denmark, Luxemburg.
Overall Spatial Inequality

I
High Spatial Inequality (Gini > 0.90): Australia, Somalia,

Chad, Mali, Zaire, and Sudan.
Low Spatial inequality in light density (Gini < 0.10): Trinidad

and Tobago, Rwanda, Comoros, Belgium, and other small
countries (e.g. Bahrain, Jamaica).
Ethnic Inequality
Empirics. Basic Correlations
Ethno-linguistic Fragmentation and Income Inequality
Preliminary Associations
1. Strong correlation of inequality measures between Ethnologue
and the Atlas Narodov Mira (GREG)
2. Persistence of ethnic inequality over time 1992
(correlations over 0:95)
2009
3. Persistence of spatial inequality over time 1992

(correlations over 0:95)
2009
4. Positive correlation (0:65 0:70) between the overall degree

of spatial inequality and ethnic inequality
Ethnic Inequality
Ethnic Inequality and Fragmentation

I
Positive and signicant association with the ethnic and

linguistic fractionalization index of Alesina et al. (2003),
around 0:45 0:60.
The correlation with the ethnic and linguistic segregation

measures of Alesina and Zhuravskaya (2011) is positive,
around 0:25 0:40.
The correlation with the polarization measures of Montalvo

and Reynal-Querol (2005) is below 0:20.
No association with religious

fractionalization/polarization/segregation
Ethnic Inequality
Ethnic Diversity and Ethnic Inequality
Ethnic Fragmentation and Ethnic Inequality, GREG
Ethnic Fragmentation and Ethnic Inequality
Unconditional Relationship
Conditional on Region Fixed Effects

IDN
LBY
BEL
QAT
CHE
THA
BOL
SUR
KGZ
MYS
BLZ
KWT IRN UGA
AFG
BIH
LBR
FJI
PER
BRN ECU
KAZ
TTO
ARE
ESP
COG TCD
ZAR GUY
LAO
KEN
JOR CMR
PAK LVA
COL NGA
CUB
MDA
CAF
CIV
SLE
SOM GNB NPL
SYR
PAN
TJK BRA
GMB
MEX MKD
BEN
AGO
EST DJI
CAN GTM ZMB
GEO
GAB
BHR ZAF
NZL
UKR BTN
MAR
SGP
GIN
BFA
TZA
NICVEN
MNG
ETH
SDN
TGO
OMN
SEN MOZ
MLI
BGR
DOM UZBMWI
GHA
TKM
BHS
JAM
ERI HRV
NER
NAM
IRQ
PNG
DEU MRT
ISR
DZA
LTU
CZE TUR
BLR ROM
VNM
PHL
FIN
IRL
AUT GBRITAFRA KHM
NLD
IND
LKA
CYP
VCT
USA
DNK
ISL SVK
RUS
SWE
NOR
GRD
SVN
ARGCHN
ALB
WSM
AZE SLB
CRI URY
AUS
EGY
TON
DMA
SAU
SLV
HUN
CHL HND
KNA
LCA
GRC
PRY
BWA
ATG
ARM
VUT
LBN POL
ZWE
JPN
KOR
GNQ
HTI
RWA
PRT
MLT
TUN
BDI
TON
ISL
MLT
VUT
KOR
COM
CZE TUR
LTU
BLR
SVK
HUN
LBNPOL
IRL
NLD
CYP
AUT
DNK
DOM
UZB
BGR
HRV
ISR
ROM
PNG
SVN
SAU
DEUGRC
GBRITA
FRA HTI
PRT
BGD
TKM
ZWE
RWA
BDI
LSO
PHL
CRI URY VNM
ALB
KHM
SLV
AUS
SWE
SWZ
NOR
.2
IND
BWA
IRQ
GNQ
DZA
ARG
MNG
RUS
AZE
CHL HND
PRY
CHN
FIN
ARM
EGY
TUN
.4
.6
Gini Ethnic Inequality in 2000; GREG
MUS
CPV
LSO
SYC
BGD
SLB
JPN
.2
SDN
PER
-.2
.4
SYC
DMA
KNA
LCA
ATG
WSM
BEL
CHE
MAR
UKR
OMN
ESP
LKA
NZL
SGP
VCT
GRD
.2
BIH
MDA
LUX
EST
MDG
AFG
BOL
Ethnic Fragmentation
.6
ARE
CUB
BHR
MUS
BHS
CPV
JAM
KGZ
LUX
-.4
ZAF
TTO
LBR
ZAR
CMRCOG NGA
TCD
KEN
CAF
CIV
SLE
SOM
GNB
DJI
LBY
BEN
GMB
AGO
ZMB
GAB
QAT
GIN
BFA
TZA
IDN
SUR
ETH
CAN
PAK
TGO
BLZ
SEN MOZ
MLI
MWI
GHA
NPL
KWT IRN
ECU
ERI
NER
NAM THA
MRT GUY
BTN KAZCOL
MYS
LVAJOR
PAN
FJI
MEX
BRN SYR
BRA
LAO
GTM
TJK
MKD
GEO
USA
NICVEN
-.6
.8
MDG
.4
UGA
.8
SWZ
COM
-.5
0
.5
Ethnic Inequality
Ethnic Inequality and Income Inequality

I
Positive (weak-to-moderate) association between income

inequality and ethnic inequality.
Positive (weak-to-moderate) association between income

inequality and the overall degree of spatial inequality.
Correlation between ethnic inequality and income inequality

weakens once we condition on the overall degree of spatial
inequality and loses (economic and statistical) signicance
when we condition on region (continental) xed-eects
Ethnic inequality captures something dierent than

income inequality (though measurement issues are non-negligible)
Ethnic Inequality
Ethnic Inequality and Income Inequality
Conditional on Region Effects
20
Income Inequality and Ethnic Inequality
70
Income Inequality and Ethnic Inequality, GREG

GAB
GAB
IRQ
50
PNG
TUR
BHS
TTO
IRL
MDA
PRT
EST LKA
LTU
40
JAM
MUS
30
MEX
DOM
KGZ
BIH
SGP
SLV
SEN NIC
GTM
COL
GMB
GEO
PANMLI
BFA
ARM ZMB
GUY
GIN
BWA
MYS
PHL
NPL TUN NGA
AZE
THA VENECU
ARG
CRI
MRT
KHM
ETH
NER
JOR URY
CIV
TKM
RUS
UGA DZA
USA
AUS
VNM
NOR
BOL
CHL
FJI
GRC
ITA
CHE
FRA
DNK
MKD
GBR
NLD
NZL
DEU
ISRLVA
KOR
BGD
ESP
UKR
JPN ROM
BEL
SVN
POL
HUN CZE
BLR
AUT
LUX
SVK
BDI
GHA
SWE KAZPAK
CAN
RWA
IDN
IND
FIN CHN
PER
SDN
TCD
LAO
EGY
SUR
TUR
ZAF
10
LBN
SGP PRT
BHS
JAM
TTO
NZL
KOR
MUS
ARM
ZWE
LSO
FJI
KGZ
EST
LTU
MEX
BDI
BGR
KENPRY
BRA
MYS
PHL HND NPL
AZE
TZA
THA
PAN
NIC
SEN
GTM
KHM MLI
SLV
BIH
TUN
CHEUSAITACOL
FRA
NOR
TKM
RUS
DNK
BFA ZMB GUY
GMB GBR
BOL
DOM NLD
GIN
DEU
CHL
AUS
SWE
PER FIN
ESP JOR MKD VNM
BWA
CAN
KAZ
NGA IDN
LVAVENECU IND
BGD
PAK
DZA
ARG
CRIBEL
GRC UKR
CHN
ROM
AUTURY
MRT
JPN
LAO
ETH
SVN
HUNPOL
NER
LUX BLR
CZE
CIV
ISR
SDN
UGA
SVK
BGR
EGY
MDA
LKA
MDG
GEO
CAF
SLE
SWZ
IRL
LBN
MDG
IRQ
ZWE PRYKEN
LSO
BRA
HND
TZA
-10
SWZ
Gini Coefficient - Income Inequality
60
ZAF
PNG
GHA
MNG
TCD
MNG
SUR
-20
RWA
20
Gini Coefficiet - Income Inequality
CAF
SLE
.2
.4
.6
.8
-.6
-.4
-.2
0
.2
.4
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Cross-Country Analysis
Graphical illustration
Baseline regression results
Sensitivity analysis
(conditional correlations)
(appendix)
Ethnic Inequality
Graphical Illustration
Ethnic Inequality and Comparative Development
12
12
QAT
PER
EGY
BOL
MNG
SDN
LBR
AFG
10
8
Ln(GDP per Capita) in 2000
BRN
NOR
USA
KWT
SGP NLD
ARE
CHE
ISL
CAN AUS
BEL GBR
IRL DNKAUT
JPN
DEU
SWE
ITA FRA
FIN
ESP
BHS NZL
ISR
GRC
BHR
MLT
PRT
SVN
KOR
SYC
OMN
CYPCZE
SAU
LBY
TTO
ATG
HUN
SVK
GRD
POLEST
GAB
LCA
MEX
KNA
HRV
MYS
CHL
ARG
CRI
LBN
LTU
JAM
URY
TUR
CUB
VEN BLZ
LVA
IRN
BRA BWA RUS
MUS
DOM
SURPAN
TON
BGR
BLR
ROM MKD
ZAF BIH
GNQ
THA
WSM
VUT
SLV GTM KAZCOL
DMA
ECU DZA
TUN
TKM
VCT
IRQ
FJI
NAM
UKR
ALBJORSWZ
SYRGUY
PRY
HND
GEO
IDN
AZE
CHN
LKA MAR
BTN
ARMAGO
CPV
PHL
COG
PNG
NIC
DJI
IND
CMR
VNM PAK
KGZ
MDA
CIV
UZB HTI
SLB LAO
SEN
MRT
BEN
NGA
LSO
KHM
NPL
TJK KEN
BGD
COM
GHA
TGO
ZMB
UGA
MDG
GMB ERI
BFA
GIN
MLI
TCD
TZA
RWA
CAF
MWI
SLE
NER
SOM
ETH
GNB
BDIZWE MOZ
KWTSGP
ARE
NLD
ISL
DNK
BEL
IRL
DEU
JPN AUT
GBR
FRA
BHS
NZL
ISRGRC
BHR
MLT
KOR
SYC SVN
SAU CZE
CYP PRT
TTO
ATG
HUN
SVK
POL
GRD
LCA
EST
KNA
HRV
LBN
LTU
JAM
URY
CUB
LVA
MUS
DOM
TON
BGR
MKD
BLR
ROM
ZAF
BIH
WSM
KAZ
DMASLV
TUN
VCT
UKR
SWZ
MAR LKA
CPVARM
DJI
KGZ
HTIMDA
UZB
RWA
10
8
6
QAT
LUX
NOR
CHE
ITA
ESP
AUS
FIN
OMN
LBY
BLZ BWA
MEX
CRI
HND
IRQ
JOR ALB
GEO
COM
CIV
MRT
LSO BGD
MWI
BDI
BRN
USA
SWE
CAN
GAB
RUS VEN
IRN
BRA
SURPAN
GNQ
COL VUT
THA
GTM
PER
DZA
ECU
TKM
FJI
NAM
EGY
SYR BOL
PRY
GUY
IDN
AZE
CHN
BTN
PHL
AGO
COG
MNG
PNG
NIC
IND
PAK VNM
CMRSDN
LAOSLB
SEN
KEN BEN
NPL NGA
TJK KHM
TGO BFA
ZMB
ERI
MDGGHA
GMB
GIN
MLI UGA
TCD
TZA
CAF
SLE
LBR
GNB NER ETH
MOZ SOM
AFG
ZWE
CHL
ARG
TUR
MYS
ZAR
ZAR
LUX
.2
.4
.6
.8
.2
.4
.6
Gini Ethnic Inequality in 2000; ETHNOLOGUE
.8
Ethnic Inequality
Graphical Illustration
Ethnic Inequality and Comparative Development,

conditional on Region Eects
SYC
SYC
NZL
KOR
SWZ
CPV
BHS
ATG
LKA
DJI
TON
WSM
LCA
KNA
JAM
URY
CUB
VCT
RWA
BDI
HTI
GAB
BWA
SGP
QAT
JPN
ZAF
MUS
GNQ
ARE
SVN KWT
CZE
ZAR
ZAR
-.5
0
.5
AUS
NAM
HUN
SVK
TTO
POL ISR
BTN
AGO
LUX
COG
EST
GRC
HRV
MLT
GRD BHR
LTU PRT
MEX MYS
TUR
OMN RUS
LBY
SAU LVA
CHL
CMRSDN
NOR
CRI ARG
CIV IND PAK
VEN
BRA
BGR
MKDBLZ BIH USA
BLR
NLD
SEN
ROM
DOM
PAN
AUT THA CHE
ISL
MRT
SUR
BEL
DEUDNKKEN
NGAVUT
IRL
SWE
LSO
KAZBEN ITA
CAN
FRA GBR
COLFIN
COM
SLV
GTM
ESP
LBN
DMA
NPL
PERTKM
GHA
ECU
FJI
BGD UKRGMB
ERI
UGATGO BFA
MDG ZMB
IRN
GIN
ALB
MLI
TCD
TZA
GEO
CAF
CYP
AZE
PRY
GUY
IDN
CHN
BOL
MWIARM
HND
SLE
DZA
PHL LBR
NER ETH
TUN
MOZSOMIRQ
MNG GNB
PNG
EGY
JOR
NIC
ZWE
KGZ
SYR
MDA
VNM
AFG
UZB
LAO
SLB
MAR
TJK
KHM
-2
CZE
SWZ
HUN
SVK
TTO
POL
ISR
BTN
AGO
LUX GRC
COG
EST
HRV
PRT
MYS
DJI
LTU
MEX
RUS
TUR
LVA
OMN
SDN
SAU
CMR LBY CHL ARG
NOR
CRI URY IND
PAK
CIV
VEN BLZ
BRA
BGR
MKD
BLR
NLD
CHE
SEN
ROM
DOM
USA
BIH
PAN
AUT
ISL
MRT
BEL GBR
THA
BEN
DEU
IRL DNK
SWE
LSO
KAZ NGASUR
CAN
FRA
ITAKEN
FIN
SLV GTM COL
ESP
TKM
LBN
NPL
PER
GHA
ECU
UKR
FJI
TGO
ZMB
BGD
UGA
GMBERI IRN
BFA
TCD
TZA ALB GIN MLI
RWA
CAF
GEO
CYP
AZE
PRY
GUY
IDN
CHN
BOL
MWI
ARM
SLE HND LBR
DZA
PHL
NER
TUN
SOM
ETH
MOZ GNB
IRQ
PNG
MNG
BDIZWE
EGY
JOR
NIC
KGZ
SYR
MDA
VNM
AFG
UZB
LAO
HTI
SLB
MAR
TJK
KHM
BRN
AUS
GNQ
SVN
NAM KWT
COM
MDG
-1
ATG
LKA
BHR
GRD
LCAMLT
KNA
JAM
CUB
TON
WSM
VUT
DMA
VCT
CPV
JPN
QAT
ZAF
NZL
BHS
ARE
KOR
-1
SGP
MUS
BRN
BWA
-2
GAB
-.5
0
Gini Ethnic Inequality in 2000; ETHNOLOGUE
.5
Ethnic Inequality
Regression Analysis
Baseline Results with Atlas Narodov Mira

(1)
Ethnic Inequality
[Gini Coeff., GREG]
(2)
-1.4707***
(0.2504)
-5.87
Spatial Inequality 1
(3)
(4)
-1.4003***
(0.3633)
-3.85
(5)
(6)
-1.4985***
(0.4018)
-3.73
(7)
-1.1508*** -0.1112
(0.2786) (0.3780)
-4.13
-0.29
[Gini Coeff., Pixels]
(8)
-0.1186
(0.3809)
-0.31
-1.1612*** 0.0373
(0.2559) (0.3961)
-4.54
0.09
[Gini Coeff., Thiessen Polyg]
(9)
Log Number of Languages

[GREG]
0.0880
(0.4084)
0.22
-0.3037*** -0.0887 -0.0893 -0.0912
(0.0605) (0.0930) (0.0936) (0.0949)
-5.02
-0.95
-0.95
-0.96
0.661
173
Yes
(11)
-0.0592
(0.3820)
-0.15
Ethnic Inequality in Population

[Gini Coeff., GREG]
adjusted R-squared
observations
Region Fixed Effects
(10)
-1.1868*** -1.1099** -1.2446** -1.3447*** -1.4580***

(0.4069) (0.5045) (0.4835) (0.5148) (0.4905)
-2.92
-2.20
-2.57
-2.61
-2.97
0.1060
(0.4155)
0.26
-0.1675
(0.1286)
-1.30
-0.1723
(0.1304)
-1.32
0.5164
0.5305
(0.4472) (0.4465)
1.15
1.19
0.626
173
Yes
0.659
173
Yes
0.631
173
Yes
0.659
173
Yes
0.643
173
Yes
0.661
173
Yes
0.659
173
Yes
0.659
173
Yes
0.659
173
Yes
0.659
173
Yes
Ethnic Inequality
Regression Analysis
Baseline Results with Ethnologue

(1)
(2)
Ethnic Inequality
-1.1281***
[Gini Coeff., ETHNO] (0.2267)
-4.98
(3)
(4)
-1.0245***
(0.2975)
-3.44
(5)
(6)
-1.0839***
(0.3817)
-2.84
(7)
-1.1508*** -0.2035
(0.2786) (0.3524)
-4.13
-0.58
[Gini Coeff., Pixels]
(8)
-0.1857
(0.3617)
-0.51
-1.1612*** -0.0732
(0.2559) (0.4343)
-4.54
-0.17
[Gini Coeff., Thiessen Polyg]
(9)
Log Number of Languages

[ETHNO]
(11)
-0.1531
(0.3508)
-0.44
-0.0884
(0.4354)
-0.20
0.1967
(0.4539)
0.43
-0.1730*** 0.0389
0.0357
0.0399
(0.0467) (0.0741) (0.0759) (0.0751)
-3.70
0.53
0.47
0.53
Ethnic Inequality in Population

[Gini Coeff., ETHNO]
adjusted R-squared
observations
(10)
-1.2806*** -1.1734** -1.2309***-1.0657*** -1.2554***

(0.3694) (0.4625) (0.4528) (0.3747) (0.4300)
-3.47
-2.54
-2.72
-2.84
-2.92
0.654
173
Yes
0.6678* 0.7013*
(0.3727) (0.3742)
1.79
1.87
0.626
173
Yes
0.653
173
Yes
0.631
173
Yes
0.652
173
Yes
0.625
173
Yes
0.653
173
Yes
0.651
173
Yes
0.651
173
Yes
0.66
173
Yes
0.661
173
Yes
Ethnic Inequality
Regression Analysis
Conditional on Other Aspects of Diversity

(1)
Ethnic Inequality
[Gini Coeff.]
Atlas Narodov Mira (GREG)

(2)
(3)
(4)
-0.0097
(0.3590)
Cultural Fragmentation
(8)
0.1256
(0.3431)
-0.3417
(0.3520)
Ethno-linguistic Polarization 1
0.0339
(0.3469)
0.464
(0.9745)
Ethno-linguistic Polarization 2
adjusted R-squared
observations
Ethnologue
(6)
(7)
-1.4977*** -1.6771*** -1.5567*** -1.5782*** -1.1099*** -0.8248** -1.1186*** -1.1438***

(0.4011)
(0.3955)
(0.4075)
(0.3924)
(0.3716) (0.3417) (0.3744)
(0.3756)
[Gini Coeff.]
(5)
0.5817
(0.9820)
1.9997
(1.2688)
2.1173*
(1.1802)
0.0397
(0.4163)
0.0739
(0.4827)
0.0641
(0.3928)
0.0563
(0.3845)
-0.0862
(0.4408)
-0.468
(0.4760)
-0.0577
(0.4230)
-0.0568
(0.4224)
0.657
173
Yes
0.694
150
Yes
0.653
172
Yes
0.658
172
Yes
0.65
173
Yes
0.675
150
Yes
0.646
172
Yes
0.651
172
Yes
Ethnic Inequality
Regression Analysis
Sensitivity Analysis
I
excluding ethnicities with less than 1% of a countrys

population
dropping any continent
excluding regions where capital cities fall (ethnic mixing,

outliers)
excluding countries with a single ethnic-linguistic group
conditioning on geography. [log of population, log land area,

terrain ruggedness, distance to the coast, the percentage of arable
land, an index of soil quality, and the percentage of tropical land
(these are the same controls as Nunn and Puga in "Ruggedness: The Blessing
of Bad Geography", RecStat 2012).]
Ethnic Inequality
Regression Analysis
Overview of Cross-Country Evidence

I
Strong association between ethnic inequality and economic

development
I
Not driven by the overall degree of spatial inequality
Not driven by ethnic fragmentation or income inequality
The negative correlation between ethnic fragmentation and

economic development weakens (and turns insignicant in
many specications) once we account for ethnic inequality
Issues: Endogeneity
I
Reverse causation
Omitted variables
Measurement error
Ethnic Inequality
Regression Analysis
Overview of Cross-Country Evidence

I
Strong association between ethnic inequality and economic

development
I
Not driven by the overall degree of spatial inequality
Not driven by ethnic fragmentation or income inequality
The negative correlation between ethnic fragmentation and

economic development weakens (and turns insignicant in
many specications) once we account for ethnic inequality
Issues: Endogeneity
I
Reverse causation
Omitted variables
Measurement error
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Idea and Preliminary Evidence
Origins of Ethnic Inequality

I
Given the strong negative association of ethnic inequality with

development, it is worthwhile to explore its origins
I
Starting point => Usual correlates of economic development

(type of colonization; legal origins; state antiquity; geography):
Not much.
Link inequality in endowments across ethnic homelands with

ethnic inequality
I
Michalopoulos (2012) shows that ethnic groups reside on

dierent land endowments.
Inequality in the distribution of ethnic land endowments may

explain dierences in economic performance across groups.
Ethnic Inequality
Origins of Ethnic Inequality

I
Given the strong negative association of ethnic inequality with

development, it is worthwhile to explore its origins
I
Starting point => Usual correlates of economic development

(type of colonization; legal origins; state antiquity; geography):
Not much.
Link inequality in endowments across ethnic homelands with

ethnic inequality
I
Michalopoulos (2012) shows that ethnic groups reside on

dierent land endowments.
Inequality in the distribution of ethnic land endowments may

explain dierences in economic performance across groups.
Ethnic Inequality
Geographic Origins of Ethnic Inequality

Using geo-referenced data sets we construct inequality measures
(Gini coe cients) across ethnic homelands across the following dimensions:
1. Inequality in elevation
2. Inequality in land quality/suitability for agriculture
3. Inequality in distance to the coast
4. Inequality in the presence of water (rivers, lakes, and other
streams)
I
As in our earlier analysis we also calculate geographic

inequality using boxes/pixels and Thiessen polygons.
Ethnic Inequality
From Geographic to Economic Inequality

Ethnologue
All Ethnic Areas

(1)
(2)
(3)
Excl. Capitals
(4)
(5)
(6)
Gini Coef. - Sea Distance
0.0489 0.1379 0.1857

(0.0956) (0.1231) (0.1156)
0.0552
0.1090
0.1961
(0.1274) (0.1611) (0.1494)
Gini Coef. - Elevation
0.4343 0.8727 0.6973

0.0953
(0.3304) (0.6673) (0.6334) (0.1206)
All Ethnic Areas

(7)
(8)
(9)
0.0355
(0.0969)
(10)
Excl. Cap
(11)
-0.1886 -0.1756
(0.1567) (0.1622)
0.0897 0.027
(0.1143) (0.163
0.1046
0.0754
0.6292 3.0353** 1.7750
(0.1262) (0.1178) (0.4782) (1.2705) -1.2926
0.0027** 0.0038*
(0.0010) (0.001
Gini Coeff. -Land Quality 0.2528*** -0.1028 -0.121 0.3067*** 0.1227

0.1227 0.3680*** 0.6496*** 0.6000*** 0.3338*** 0.4759
(0.0910) (0.1775) (0.1813) (0.0935) (0.1816) (0.1872) (0.0978) (0.2038) (0.1654) (0.0922) (0.187
Gini Coeff. - Water Area
0.5632***0.4985***0.4744*** 0.4476*** 0.4011*** 0.3914*** 0.6698*** 0.5550*** 0.5862*** 0.5238*** 0.4206*

(0.0550) (0.0773) (0.0733) (0.0970) (0.1275) (0.1280) (0.0621) (0.0857) (0.0875) (0.0786) (0.099
adjusted R-squared
Observations
0.674
173
0.6674
169
0.6408
162
0.5967
151
0.5988
150
0.6078
150
0.7511
168
0.7537
166
0.7595
160
0.7169
144
0.714
143

Controls
Yes
No
Yes
Spatial
Yes
Spatial
& Level
Yes
No
Yes
Spatial
Yes
Spatial
& Level
Yes
No
Yes
Spatial
Yes
Spatial
& Level
Yes
No
Yes
Spatia
Ethnic Inequality
A Composite Index of Inequality across Ethnic Homelands
Issues
Several measures of inequality in land endowments across

ethnic homelands (one could construct many more)
No strong priors which aspect of geographic dierences would

matter most (elevation, access to water, land suitability for agriculture)
Measurement issues
Ethnic Inequality
Approach -Factor Analysis

I
Extract common factor(s) of inequality in geographic

endowments across ethnic homelands
I
principal component analysis
Construct a composite index of inequality in geographic

endowments across ethnic homelands
Also construct a composite inequality index of geographic

endowments using boxes/pixels and Thiessen polygons (rather
than ethnic homelands)
Ethnic Inequality
Principal Component Analysis

Eigenvalue
Variance
Explained Variable
Factor Loadings
1st PC
2nd PC
3rd PC
4th PC
0.080
-0.720
0.689
-0.027
0.563
0.208
0.120
-0.791
0.153
0.468
0.230
-0.840
0.720
-0.650
0.152
-0.190
0.186
-0.770
0.610
0.008
0.563
0.229
0.128
-0.783
Panel A: Gini Coefficient GREG - All Groups (173 countries)

1st Principal Component
2nd Principal Component
3rd Principal Component
4th Principal Component
2.474
0.708
0.481
0.337
0.618
0.177
0.120
0.084
Gini Sea Distance

Gini Elevation
Gini Land Quality
Gini Water Area
0.482
0.491
0.479
0.545
-0.666
0.444
0.531
-0.277
Panel B: Gini Coefficient GREG - Excluding Capitals (151 countries)

2.420
0.753
0.515
0.312
0.567
0.200
0.128
0.105
Gini Sea Distance

Gini Elevation
Gini Land Quality
Gini Water Area
0.537
0.540
0.402
0.508
-0.413
-0.259
0.873
0.020
Panel C: Gini Coefficient ETHNOLOGUE - All Groups (168 countries)

2.389
0.739
0.583
0.289
0.597
0.185
0.146
0.072
Gini Sea Distance

Gini Elevation
Gini Land Quality
Gini Water Area
0.498
0.478
0.445
0.571
-0.633
0.355
0.643
-0.246
Panel D: Gini Coefficient ETHNOLOGUE - Excluding Capitals (144 countries)

1.804
1.052
0.703
0.441
0.451
0.263
0.176
0.110
Gini Sea Distance

Gini Elevation
Gini Land Quality
Gini Water Area
0.594
0.186
0.466
0.629
0.188
0.865
-0.455
-0.096
-0.468
0.456
0.722
-0.228
0.627
-0.095
0.234
-0.737
Ethnic Inequality
Inequality on Land Endowments across Ethnic Homelands, Contemporary Ethnic Inequality, and Development
Inequality in Land Endowments across Ethnic Homelands

and Contemporary Ethnic Inequality
Inequality in Geography and Contemporary Ethnic Inequality
Inequality in Geography and Contemporary Ethnic Inequality

SDN
-2
0
2
Inequality in Geographic Endowments across Ethnic Homelands
.6
BWA
MWI ESP
BLZ CHE
.4
CHL
.8
TCD
SDN
PNG
BRA
ETH
ZAR
COG
CMR
IDN SLB
LAO
VUT
AGO
NGA
ZWE
NER
AFG
AUS
CAF
PER
BFA LBR
COL
GAB
EGY
GNB
NPL
GUY VEN
BTN
OMN
TGOGIN
BOL
TZA
SLE
RUS
KHM
UGA
PHL
SYR GNQ
TKM
PAN
FIN TJK
DZA
BRN SUR MNG
MLI MYSSOM
GTM
SEN
NIC
VNM
MOZ
BEN
FJI IRN CHN
ECU
ZMB
ERI LBY AZE
KEN
PAK
GHA
PRY
THA
TUR
MDG
USA
CHL
SWE
GMB
NAM ARG
IND
CRI
ALB
CIV
MRT
BGD
GEO
MEX
IRQ
CAN
LSOJOR
HNDNOR
ITA
PRT KAZ
GRC
TUN
ZAF
ISR
UZBAUT
DEU
GBR
UKR
DJI
SVK
MKD
DOM
FRA
LTU LKA HUN
BGR ROM
NLD
BEL
CZE
IRL
MAR
SLV
BHR
POL
SAU SVN
MDA LVA
ARM
ARE
LBN
BIH DNK
SGP
CYP
KGZ
KWT
.2
.6
.4
.2
ARE
WSM
COM
MDG
GRD
KOR
MUS
BHR
CUB
DMA
TON
ATG
BHS
CPV
KNA
SYC
JAM
MLT
VCT
LCA
ISL
ZAR
Gini Coefficient - Ethnic Inequality in 2000

ETHNOLOGUE
LAO
GEO
TCD
NGA
RUS
SLB
COG GAB
BWA
TUN
ZMB
AGO
MLI
IRQ
CHN
DZA
CMRGNQ
GUY
TGO PAN
IDN
NPL
ETH
IND
ARM
GIN
BFA
BLZ HND BRA NER
AZE
UGA SUR
MRT SYR FIN ARG
ECU GNB
BEN
KEN
TKM
MOZ VEN
PRY BRN
NIC
TJK
RWA
TZA
GHA
THASOM
PAK
MWI
ZWE SENPHL COLERI
LBYKAZ
AUSVNM
KHM
GMB
BDI
LSO
NAM
BGR NOR
GTM
SWE
CAN
BTN
SWZ URY
MYS
USA
CIV CRI
JOR
SLV
LVA BGD
ALB
QAT
IRN
DJI
ISR
HRV
HTIFJI KWT
MEX
MKD
PNG
UZB
DOM
SAUFRA
SVN
GRC ROM
BIH
ITA
DEU
JPN
ZAF
BLR GBR KGZ
UKR
CHE MAR
OMN
BEL
AUT
LKA
SVK
LTU
TUR
DNK
ESP
EST
MDA
PRT
IRL LUX
NLD
POL
TTOCZE
CYP
LBN
HUN
SGP
NZL
VUT
CAF
SLE
-4
MNG
PER
EGY
BOL
WSM
RWA
SWZ
KOR
MUS
CUB
TON
URY
ATG
BHS
CPV
HRV
KNA
QAT
SYC
BLR
EST
JAM
MLT
VCT
LCA
LUX
NZL
BDI
HTI
ISL
.8
LBR
Gini Coefficient - Ethnic Inequality in 2000

GREG
AFG
-4
-2
0
2
Inequality in Geographic Endowments across Ethnic Homelands
Ethnic Inequality
Regression Results
(1)
(2)
(3)
Inequality in Geographic Endowments
across Ethnic Homelands (PC)
0.1227*** 0.1089*** 0.0973***

(0.0088) (0.0178) (0.0171)
14.00
Spatial Inequality in Geographic

Endowments (PC)
Adjusted R-squared
Observations
Additional Controls
0.623
173
Yes
No
6.13
5.70
0.0109
(0.0182)
0.6
0.0068
(0.0194)
0.35
0.616
169
Yes
No
0.605
162
Yes
Geography
(4)
Ethnologue
(5)
(6
0.1613*** 0.1523*** 0.158

(0.0095) (0.0196) (0.0
16.99
0.695
168
Yes
No
7.76
7.9
0.0075
(0.0202)
0.37
-0.0
(0.0
-0.
0.689
166
Yes
No
0.6
16
Y
Geog
Ethnic Inequality
Ethnic Inequality in Land Endowments and Comparative

Development
I
Examine the association between inequality in geographic

endowments across ethnic homelands and contemporary
development
Merits
I
Sensitivity analysis (to the benchmark measure of inequality

based on satellite images on light density at night)
Predetermined measure of inequality across ethnic homelands
Ethnic Inequality
Geographic Inequality Across Groups and Development

(1)
(2)
(3)
Inequality in Geographic Endowments -0.1789*** -0.2311*** -0.1770**
across Ethnic Homelands (PC)
(0.0405) (0.0851) (0.0891)
-4.42
-2.71
-1.99
Spatial Inequality in Geographic
Endowments (PC)
adjusted R-squared
Observations
Region Fixed-Effects
Additional Controls
0.629
173
Yes
No
0.0755
(0.0970)
0.78
0.048
(0.1113)
0.43
0.646
169
Yes
No
0.668
162
Yes
Geography
(4)
Ethnologue
(5)
-0.1611*** -0.0580
(0.0459) (0.0956)
-3.51
-0.61
-0.1
(0.0
-1
-0.0898
(0.0986)
-0.91
0.0
(0.1
0.
0.639
166
Yes
No
0.
1
Y
Geog
0.623
168
Yes
No
Ethnic Inequality
Micro Analysis within Sub-Saharan African Countries
Approach
Afrobarometer Sample
I
Geo-referenced household data (from Afrobarometer

Surveys) on
I
Ethnic a liation
Access to public goods (electricity, clean water, sewage system)
Self-reported living conditions and education
Merits
I
Explore regional (within country) variation
Explore within-country within-ethnicity variation (movers

non-movers)
Heterogeneous eects (urban/rural households, etc).
Decompose overall inequality into within and between-group
Ethnic Inequality
Approach
I
Geo-referenced household data (from Afrobarometer

Surveys) on
I
Ethnic a liation
Access to public goods (electricity, clean water, sewage system)
Self-reported living conditions and education
Merits
I
Explore regional (within country) variation
Explore within-country within-ethnicity variation (movers

non-movers)
Heterogeneous eects (urban/rural households, etc).
Decompose overall inequality into within and between-group
Ethnic Inequality
Results
Baseline Within-Country Results
Living Conditions
(1)
(2)
Education
(3)
(4)
Piped Wate r
(5)
(6)
Sewage System
(7)
(8)
Electricity Grid
(9)
(10)
Between-Group Ineq. -4.9156***-6.2329***-4.8300***-5.0611***-2.3742***-2.4819***-1.8750***-1.8256***-1.6597** -1.5788**

[Theil Index]
Within-Group Ineq.
[Theil Index]
(0.7928)
(1.0646) (1.0006) (1.1533)
(0.5946) (0.6418) (0.4573) (0.4840) (0.7693) (0.7102)
-2.7822***-5.8355***-3.3152***-3.7319***-0.9359***-1.0316*** -0.6892 -0.4841 -1.2840***-1.1552***

(0.9196) (1.0642) (0.5246) (0.9003) (0.2653) (0.3009) (0.4133) (0.5473) (0.2040) (0.2944)
Log Number of Groups 0.2881*** 0.0740** 0.6018*** 0.5680*** 0.2008*** 0.1715***0.1697***0.1551***0.2412***0.2291***

(0.0802)
adjusted R-squared
Observations
Country FE
Sample
0.359
1301
Yes
All
(0.0321) (0.0741) (0.0982)

0.517
861
Yes
>1 groups
0.509
1301
Yes
All
0.552
861
Yes
>1 groups
(0.0248) (0.0282) (0.0462) (0.0448) (0.0460) (0.0568)

0.215
1286
Yes
All
0.243
856
Yes
>1 groups
0.216
0.220
1280
852
Yes
Yes
All >1 groups
0.314
0.304
1292
858
Yes
Yes
All >1 groups
Ethnic Inequality
Results
Explore within-country, within-ethnicity across region

variation.
People from the same ethnic group are present in many

enumeration areas
Ethnic Inequality
Results
Within-Country Within-Ethnicity Results
Living Conditions
(1)
(2)
Education
(3)
(4)
Piped Wate r
(5)
(6)
Sewage System
(7)
(8)
Electricity Grid
(9)
(10)
Between-Group Ineq. -4.9156***-6.2329***-4.8300***-5.0611***-2.3742***-2.4819***-1.8750***-1.8256***-1.6597** -1.5788**

[Theil Index]
Within-Group Ineq.
[Theil Index]
(0.7928)
(1.0646) (1.0006) (1.1533)
(0.5946) (0.6418) (0.4573) (0.4840) (0.7693) (0.7102)
-2.7822***-5.8355***-3.3152***-3.7319***-0.9359***-1.0316*** -0.6892 -0.4841 -1.2840***-1.1552***

(0.9196) (1.0642) (0.5246) (0.9003) (0.2653) (0.3009) (0.4133) (0.5473) (0.2040) (0.2944)
Log Number of Groups 0.2881*** 0.0740** 0.6018*** 0.5680*** 0.2008*** 0.1715***0.1697***0.1551***0.2412***0.2291***

(0.0802)
adjusted R-squared
Observations
Country FE
Sample
0.359
1301
Yes
All
(0.0321) (0.0741) (0.0982)

0.517
861
Yes
>1 groups
0.509
1301
Yes
All
0.552
861
Yes
>1 groups
(0.0248) (0.0282) (0.0462) (0.0448) (0.0460) (0.0568)

0.215
1286
Yes
All
0.243
856
Yes
>1 groups
0.216
0.220
1280
852
Yes
Yes
All >1 groups
0.314
0.304
1292
858
Yes
Yes
All >1 groups
Ethnic Inequality
Conclusion
Contribution
Look beyond Inequality and Fragmentation

I
Construct indicators of ethnic inequality

I
Strong negative correlation between ethnic inequality and

comparative development
I
conditional on the overall degree of spatial inequality
Exploration of the origins of ethnic inequality

I
combining linguistic-ethnic maps with satellite images on light

density at night
a sizeable fraction is driven by inequality of group-specic

geographic endowments
Signicant negative correlation between ethnic inequality in

endowments and development
I
conditional on the overall degree of spatial inequality in

geography
Ethnic Inequality
Conclusion
Contribution
Further Evidence
I
Examine the association between ethnic inequality and

development and public goods provision using micro-level data
from Sub-Saharan African countries
I
explore within country variation (account for country xed

factors, policies and even ethnic factors.)
use alternative to luminosity individual-level level data
focus on most ethnically diverse place in the world where

ethnicity is particularly salient
condition on the overall (non-ethnic) degree of inequality

(decomposition)
Ethnic Inequality
Conclusion
Subsequent Research
Channels
Switch focus of literature (both empirical and theoretical)

1. Pro-market reforms rejected
2. Hatred and civil conict
3. Ine cient provision of public goods
4. Alternative measures (various dimmensions)
5. Formal theoretical work

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Ethnic Inequality

NBER Economic Growth Meetings (EFG)

Inequality: sizable dierences in economic well-being (income,

Fractionalization/polarization: dierences in ethnic

Ethnic Inequality (Intersection of Inequality and Ethnic

Market dominant minorities

Inequality: sizable dierences in economic well-being (income,

Fractionalization/polarization: dierences in ethnic

Ethnic Inequality (Intersection of Inequality and Ethnic

Market dominant minorities

Inequality: sizable dierences in economic well-being (income,

Fractionalization/polarization: dierences in ethnic

Ethnic Inequality (Intersection of Inequality and Ethnic

Market dominant minorities

study the relationship between ethnic inequality and

primary exploration of the origins of ethnic inequality

assess the role of ethnic inequality on income and public

study the relationship between ethnic inequality and

primary exploration of the origins of ethnic inequality

assess the role of ethnic inequality on income and public

(using micro-level data from

Sub-Saharan African countries)

3. Across districts within countries within ethnic groups

(using micro-level data from

Sub-Saharan African countries)

3. Across districts within countries within ethnic groups

Ethnic Diversity - Existing Research

Theory: Ambiguous eect

Negative eect: animosity; preferences for public

Empirical evidence: clear

Strong negative correlation between ethnic-linguistic

Less clear-cut association with civil conict, though overall a

Income Inequality - Existing Research

Theory: Ambiguous eect

Negative eect: conict; redistribution; lofty taxation

Positive eect: takeos; externalities; specialization in

Non-monotonic: depending on the level of development

Empirical evidence: Not clear-cut

No robust association with growth, democracy, development

Changes in inequality in any direction are associated with lower

A key aspect of ethnic fractionalization is missing

Inequality across ethnic groups

A key aspect of income inequality is missing

Income inequality across ethnic groups

Ethnic Inequality , Political Inequality =) lower public good

Ethnic Inequality =) Aspiration trap for the less a- uent

Presence of economically dominant ethnic minorities =)

Ethnic Inequality =) Resentment Between Groups

Ethnic Inequality =) Conict Between Groups

Ethnic inequality is pervasive in many countries (e.g., Africa,

Examples (Chua, 2003): Kikuyu in Kenya, I(g)bo in Nigeria,

Racial Inequality in the US

Zoom in on Africa (results are not driven by Africa)

Most ethnically diverse part of the world

Detailed regional level on public goods, education, and ethnic

The Road Map

3. Correlation with economic development

5. Examine within-country variation using household data from

GREG (digitized version of the Atlas Narodov Mira).

1,276 ethnic groups around the world.

The information pertains to the 1960s.

7,570 linguistic groups. (though limited coverage for Latin

Satellite images of light density at night (available since 1992)

Use data in 1992, 2000, 2010