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 differences in economic well-being (income,education, access to public goods) both across and withincountries
I Fractionalization/polarization: differences in ethnic(religious, linguistic) composition both across and withincountries
I Ethnic Inequality (Intersection of Inequality and EthnicFragmentation)
I Market dominant minorities (Chua (2003))
Ethnic Inequality
Introduction
Research Question
Observations
I Inequality: sizable differences in economic well-being (income,education, access to public goods) both across and withincountries
I Fractionalization/polarization: differences in ethnic(religious, linguistic) composition both across and withincountries
I Ethnic Inequality (Intersection of Inequality and EthnicFragmentation)
I Market dominant minorities (Chua (2003))
Ethnic Inequality
Introduction
Research Question
Observations
I Inequality: sizable differences in economic well-being (income,education, access to public goods) both across and withincountries
I Fractionalization/polarization: differences in ethnic(religious, linguistic) composition both across and withincountries
I Ethnic Inequality (Intersection of Inequality and EthnicFragmentation)
I Market dominant minorities (Chua (2003))
Ethnic Inequality
Introduction
Objective
Idea
Document and analyze empirically the patterns of income in-equality
Specifically :
I study the relationship between ethnic inequality andcomparative economic development across countries
I primary exploration of the origins of ethnic inequality
I assess the role of ethnic inequality on income and publicgoods provision within countries
Ethnic Inequality
Introduction
Objective
Idea
Document and analyze empirically the patterns of income in-equality
Specifically :
I study the relationship between ethnic inequality andcomparative economic development across countries
I primary exploration of the origins of ethnic inequality
I assess the role of ethnic inequality on income and publicgoods 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 andpredetermined proxies of inequality
2. Across districts within countries (using micro-level data fromSub-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 andpredetermined proxies of inequality
2. Across districts within countries (using micro-level data fromSub-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
I Theory: Ambiguous effect
I Negative effect: animosity; preferences for publicgoods/redistribution
I Positive effect: heterogeneous inputs => trade, production
I Empirical evidence: clearI Strong negative correlation between ethnic-linguisticfragmentation 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)
I Less clear-cut association with civil conflict, though overall anegative 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 effect
I Negative effect: conflict; redistribution; lofty taxationI Positive effect: takeoffs; externalities; specialization inhigh-tech sectors
I Non-monotonic: depending on the level of development (Galor andMoav (2004))
I Empirical evidence: Not clear-cut
I No robust association with growth, democracy, development(Benabou, 1996, 2000)
I Changes in inequality in any direction are associated with lowergrowth (Banerjee and Duflo, 2003)
Ethnic Inequality
Introduction
Income Inequality and Economic Development
Our idea
I A key aspect of ethnic fractionalization is missing
I Inequality across ethnic groups
I A key aspect of income inequality is missing
I Income inequality across ethnic groups
Ethnic Inequality
Introduction
Ethnic Inequality and Economic Development
Channels
I Ethnic Inequality ⇔ Political Inequality =⇒ lower public goodprovision; absence of checks and balances.
I Ethnic Inequality =⇒ Aspiration trap for the less affl uentgroups =⇒ lower effort
I Presence of economically dominant ethnic minorities =⇒negative reaction to free market institutions (work in progress)
I Ethnic Inequality =⇒ Resentment Between Groups (work inprogress)
I Ethnic Inequality =⇒ Conflict Between Groups (work in progress)
Ethnic Inequality
Introduction
Ethnic Inequality and Economic Development
Where?
I 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
I Racial Inequality in the US (Glen Loury)
I Zoom in on Africa (results are not driven by Africa)
I Most ethnically diverse part of the worldI Salience of ethnicity (Robinson, 2003)
I Detailed regional level on public goods, education, and ethnicidentification (Afrobarometer Surveys)
Ethnic Inequality
Introduction
This Paper
The Road Map1. Construct an index of economic inequality acrossethnic/linguistic groups in all countries
2. Explore association of ethnic inequality with
I Ethnic/linguistic fragmentationI 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 fromthe Afrobarometer Surveys.
Ethnic Inequality
Empirics. Data Construction
Data Sources
Ethnic-Linguistic Homelands
I GREG (digitized version of the Atlas Narodov Mira).
I 1,276 ethnic groups around the world.
I The information pertains to the 1960s.
I Ethnologue.
I 7,570 linguistic groups. (though limited coverage for LatinAmerica)
I Early-mid 1990s
Ethnic Inequality
Empirics. Data Construction
Data Sources
Luminosity
I Satellite images of light density at night (available since 1992)
I Use data in 1992, 2000, 2010
I Strong association with:
I Income growth: Henderson, Storeygaard, and Weil (AER 2012).I Income level: Chen and Nordhaus (PNAS, 2011).I Income level and other proxy measures of well-being. Michalopoulosand Papaioannou (2012, 2013).
I Population estimates at the grid level.
I Gridded Population of the World’dataset (GPW, CIESIN,2005)
I 1990, 2000
Ethnic Inequality
Empirics. Data Construction
Data Sources
Luminosity
I Satellite images of light density at night (available since 1992)
I Use data in 1992, 2000, 2010
I Strong association with:
I Income growth: Henderson, Storeygaard, and Weil (AER 2012).I Income level: Chen and Nordhaus (PNAS, 2011).I Income level and other proxy measures of well-being. Michalopoulosand Papaioannou (2012, 2013).
I Population estimates at the grid level.
I Gridded Population of the World’dataset (GPW, CIESIN,2005)
I 1990, 2000
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
New Inequality MeasuresI Ethnic Inequality (Gini coeffi cient): Inequality in lights percapita across ethnic (linguistic) homelands
I in 1992, 2000, 2009I with GREG and Ethnologue
I Overall spatial inequality (Gini coeffi cient): Inequality inlights per capita across arbitrary regions
I splitting each country in boxes of 2.5 x 2.5 dd (approximately250 km x 250 km; twice the size of mean ethnic homeland)
I Thiessen polygon using as input points the centroids of thelinguistic homelands according to the Ethnologue dataset.
I Any location within a polygon is closer to its associated point thanto points in other polygons.
I Inequality in lights per capita across boxes/pixels and Thiessenpolygons within countries in 1992, 2000, and 2009.
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
New Inequality MeasuresI Ethnic Inequality (Gini coeffi cient): Inequality in lights percapita across ethnic (linguistic) homelands
I in 1992, 2000, 2009I with GREG and Ethnologue
I Overall spatial inequality (Gini coeffi cient): Inequality inlights per capita across arbitrary regions
I splitting each country in boxes of 2.5 x 2.5 dd (approximately250 km x 250 km; twice the size of mean ethnic homeland)
I Thiessen polygon using as input points the centroids of thelinguistic homelands according to the Ethnologue dataset.
I Any location within a polygon is closer to its associated point thanto points in other polygons.
I Inequality in lights per capita across boxes/pixels and Thiessenpolygons within countries in 1992, 2000, and 2009.
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
New Inequality MeasuresI Ethnic Inequality (Gini coeffi cient): Inequality in lights percapita across ethnic (linguistic) homelands
I in 1992, 2000, 2009I with GREG and Ethnologue
I Overall spatial inequality (Gini coeffi cient): Inequality inlights per capita across arbitrary regions
I splitting each country in boxes of 2.5 x 2.5 dd (approximately250 km x 250 km; twice the size of mean ethnic homeland)
I Thiessen polygon using as input points the centroids of thelinguistic homelands according to the Ethnologue dataset.
I Any location within a polygon is closer to its associated point thanto points in other polygons.
I Inequality in lights per capita across boxes/pixels and Thiessenpolygons within countries in 1992, 2000, and 2009.
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
Ethnic Homelands in Afghanistan - GREG
I
Ü
Ethnic Homelands in AfghanistanAfghanistan Arabs
Afghans
Arabs of Middle Asia
Baloch
Brahui
Burushaskis
FirozKohis
HazaraBerberi
HazaraDehiZainat
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
Empirics. Data Construction
Inequality Indexes
Lights per Capita across Afghan Ethnicities - GREG
IÜ
Lights per Capita in Ethnic Homelands in Afganistan Atlas Narodov Mira
0.000
0 0.
0002
0.000
3 0.
0008
0.000
9
0.001
0 0.
0014
0.001
5 0.
0170
0.017
1 0.
2329
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
Spatial Inequality - Boxes/Pixels in Afghanistan
I Ü
Lights per Capita acrossVirtual Countries in Afganistan
0.000
0 0.
0001
0.000
2 0.
0003
0.000
4 0.
0007
0.000
8 0.
0016
0.001
7 0.
0021
0.002
2 0.
0093
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
Spatial Inequality - Thiessen Polygons in Afghanistan
Lights per Capita across Thiessen Polygons in Afganistan
High : 0.0078
Low : 0Ü
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
The World Distribution of Ethnic Inequality
Ü
Ethnic Inequality Based on the Ethnologue
0.000
000
0.000
001
0.09
6480
0.096
481
0.17
7700
0.177
701
0.23
1200
0.231
201
0.28
6850
0.286
851
0.33
2310
0.332
311
0.38
2640
0.382
641
0.47
7690
0.477
691
0.56
5020
0.565
021
0.61
4520
0.614
521
0.66
0170
0.660
171
0.72
5350
0.725
351
0.76
5720
0.765
721
0.80
5260
0.805
261
0.84
1840
0.841
841
0.86
5090
0.865
091
0.90
9020
0.909
021
0.92
3390
0.923
391
0.93
8430
0.938
431
0.97
7650
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
The World Distribution of Spatial Inequality
ÜSpatial Inequality based on boxes of 2.5 x 2.5 decimal degrees
0.000
000
0.000
001
0.12
5460
0.125
461
0.18
6170
0.186
171
0.21
3960
0.213
961
0.25
0270
0.250
271
0.33
7320
0.337
321
0.35
0260
0.350
261
0.41
1980
0.411
981
0.49
0730
0.490
731
0.52
2110
0.522
111
0.59
7510
0.597
511
0.64
3330
0.643
331
0.66
6570
0.666
571
0.69
4380
0.694
381
0.72
1380
0.721
381
0.73
7670
0.737
671
0.77
4920
0.774
921
0.81
3870
0.813
871
0.86
0610
0.860
611
0.97
0380
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
Ethnic Inequality Net of Spatial Inequality
ÜEthnic Inequality Partialling Out Spatial Inequality; Ethnologue
0.000
000
0.000
001
0.09
0550
0.090
551
0.18
7790
0.187
791
0.22
7710
0.227
711
0.25
4910
0.254
911
0.35
9650
0.359
651
0.41
8870
0.418
871
0.44
7380
0.447
381
0.54
0690
0.540
691
0.59
6550
0.596
551
0.64
0680
0.640
681
0.69
2770
0.692
771
0.71
7100
0.717
101
0.73
4830
0.734
831
0.76
5040
0.765
041
0.82
2970
0.822
971
0.83
9910
0.839
911
0.88
2870
0.882
871
0.89
7010
0.897
011
0.95
1800
Ethnic Inequality
Empirics. Data Construction
Inequality Indexes
The World Distribution of Spatial Inequality
I Inequality across Ethnic-Linguistic Homelands
I High Gini ( > 0.90) in Sudan, Chad, Afghanistan, Laos, andMyanmar
I Low Gini in Ireland, Kuwait, Denmark, Luxemburg.
I Overall Spatial Inequality
I High Spatial Inequality (Gini > 0.90): Australia, Somalia,Chad, Mali, Zaire, and Sudan.
I Low Spatial inequality in light density (Gini < 0.10): Trinidadand Tobago, Rwanda, Comoros, Belgium, and other smallcountries (e.g. Bahrain, Jamaica).
Ethnic Inequality
Empirics. Basic Correlations
Ethno-linguistic Fragmentation and Income Inequality
Preliminary Associations
1. Strong correlation of inequality measures between Ethnologueand the Atlas Narodov Mira (GREG)
2. Persistence of ethnic inequality over time 1992− 2009(correlations over 0.95)
3. Persistence of spatial inequality over time 1992− 2009(correlations over 0.95)
4. Positive correlation (0.65− 0.70) between the overall degreeof spatial inequality and ethnic inequality
Ethnic Inequality
Empirics. Basic Correlations
Ethno-linguistic Fragmentation and Income Inequality
Ethnic Inequality and Fragmentation
I Positive and significant association with the ethnic andlinguistic fractionalization index of Alesina et al. (2003),around 0.45− 0.60.
I The correlation with the ethnic and linguistic segregationmeasures of Alesina and Zhuravskaya (2011) is positive,around 0.25− 0.40.
I The correlation with the polarization measures of Montalvoand Reynal-Querol (2005) is below 0.20.
I No association with religiousfractionalization/polarization/segregation
Ethnic Inequality
Empirics. Basic Correlations
Ethno-linguistic Fragmentation and Income Inequality
Ethnic Diversity and Ethnic Inequality
AFGAGO
ALB
ARE
ARG
ARMATG
AUSAUT
AZE
BDI
BEL
BEN
BFA
BGD
BGR
BHR
BHS
BIH
BLR
BLZBOL
BRABRN
BTN
BWA
CAF
CAN
CHE
CHLCHN
CIVCMRCOG
COL
COM
CPV
CRI
CUB
CYP
CZE
DEU
DJI
DMA
DNK
DOM
DZA
ECU
EGY
ERI
ESP
EST
ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHA
GIN
GMBGNB
GNQ
GRC
GRD
GTM
GUY
HND
HRV
HTI
HUN
IDN
IND
IRL
IRN
IRQ
ISL
ISR
ITA
JAM
JOR
JPN
KAZ
KEN
KGZ
KHMKNA
KOR
KWT
LAO
LBN
LBR
LBY
LCA
LKA
LSO
LTU
LUX
LVA
MAR
MDA
MDG
MEXMKD
MLI
MLT
MNG
MOZ
MRT
MUS
MWI
MYSNAM
NER
NGA
NIC
NLD
NOR
NPL
NZLOMN
PAK
PAN
PER
PHLPNG
POL
PRT
PRY
QAT
ROM
RUS
RWA
SAU
SDNSEN
SGP
SLB
SLE
SLV
SOM
SUR
SVKSVN
SWESWZ
SYC
SYR
TCD
TGO
THA
TJK
TKM
TON
TTO
TUN
TUR
TZA
UGA
UKR
URY
USA
UZB
VCT
VEN
VNM
VUT
WSM
ZAF
ZAR
ZMB
ZWE
0.2
.4.6
.81
Eth
nic
Frag
men
tatio
n
0 .2 .4 .6 .8 1Gini Ethnic Inequality in 2000; GREG
Unconditional Relationship
Ethnic Fragmentation and Ethnic Inequality, GREG
AFG
AGO
ALB
ARE
ARG
ARMATGAUS
AUT
AZE
BDI
BEL
BENBFA
BGD
BGR
BHR
BHS
BIH
BLR
BLZBOL
BRA
BRN
BTN
BWA
CAF
CAN
CHE
CHL
CHN
CIVCMRCOG
COL
COM
CPV
CRI
CUB
CYPCZE
DEU
DJI
DMA
DNK
DOM
DZA
ECU
EGY
ERI
ESP
EST
ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHA
GINGMB
GNB
GNQ
GRC
GRD
GTM
GUY
HND
HRV
HTI
HUN
IDN
INDIRL
IRN
IRQ
ISL
ISRITA
JAM
JOR
JPN
KAZKEN
KGZ
KHM
KNA
KOR
KWT
LAO
LBN
LBR
LBY
LCA
LKA
LSO
LTU
LUX
LVA
MAR
MDAMDG
MEX MKD
MLI
MLT
MNGMOZ
MRT
MUS
MWI
MYS
NAM NER
NGA
NIC
NLDNOR
NPLNZL
OMN
PAK
PAN
PER
PHLPNG
POL
PRT
PRY
QAT
ROM
RUS
RWA
SAU
SDNSEN
SGP
SLB
SLE
SLV
SOM
SUR
SVKSVN SWE
SWZ
SYC
SYR
TCD
TGO
THA
TJK
TKM
TON
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TUN
TUR
TZA
UGA
UKR
URY
USA
UZB
VCT
VEN
VNM
VUT
WSM
ZAF
ZAR
ZMB
ZWE
.6.4
.20
.2.4
Eth
nic
Frag
men
tatio
n
.5 0 .5Gini Ethnic Inequality in 2000; GREG
Conditional on Region Fixed Effects
Ethnic Fragmentation and Ethnic Inequality
Ethnic Inequality
Empirics. Basic Correlations
Ethno-linguistic Fragmentation and Income Inequality
Ethnic Inequality and Income Inequality
I Positive (weak-to-moderate) association between incomeinequality and ethnic inequality.
I Positive (weak-to-moderate) association between incomeinequality and the overall degree of spatial inequality.
I Correlation between ethnic inequality and income inequalityweakens once we condition on the overall degree of spatialinequality and loses (economic and statistical) significancewhen we condition on region (continental) fixed-effects
I Ethnic inequality captures something different thanincome inequality (though measurement issues are non-negligible)
Ethnic Inequality
Empirics. Basic Correlations
Ethno-linguistic Fragmentation and Income Inequality
Ethnic Inequality and Income Inequality
ARG
ARM
AUS
AUT
AZE
BDI
BEL
BFA
BGD
BGR
BHS
BIH
BLR
BOL
BRA
BWA
CAF
CAN
CHE
CHL
CHN
CIV
COL
CRI
CZE
DEUDNK
DOM
DZA
ECU
EGYESP
EST ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHA
GINGMB
GRC
GTMGUY
HND
HUN
IDNIND
IRL
IRQ
ISR
ITA
JAMJOR
JPN
KAZ
KEN
KGZ
KHM
KORLAO
LBN
LKA
LSO
LTU
LUX
LVA
MDA
MDG MEX
MKD
MLI
MNG
MRTMUS
MYS
NER
NGA
NIC
NLDNOR
NPL
NZLPAK
PAN
PERPHL
PNG
POL
PRT
PRY
ROM
RUS
RWA
SDN
SEN
SGP
SLE
SLV
SUR
SVK
SVN
SWE
SWZ
TCD
THA
TKM
TTOTUN
TUR
TZA
UGA
UKR
URY
USA
VEN
VNM
ZAF
ZMB
ZWE
2030
4050
6070
Gin
i Coe
ffici
et
Inco
me
Ineq
ualit
y
0 .2 .4 .6 .8 1Gini Ethnic Inequality in 2000; GREG
Unconditional Relationship
Income Inequality and Ethnic Inequality, GREG
ARG
ARM
AUS
AUT
AZE
BDI
BEL
BFA
BGD
BGR
BHS
BIH
BLR
BOL
BRA
BWA
CAF
CAN
CHE
CHL
CHN
CIV
COL
CRI
CZE
DEUDNK
DOM
DZAECU
EGY
ESP
EST
ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHA
GINGMB
GRC
GTM
GUY
HND
HUN
IDNIND
IRL
IRQ
ISR
ITA
JAM
JOR
JPN
KAZ
KEN
KGZ
KHM
KORLAO
LBN
LKA
LSO
LTU
LUX
LVA
MDA
MDG MEX
MKD
MLI
MNG
MRTMUS
MYS
NER
NGA
NIC
NLDNOR
NPL
NZLPAK
PAN
PER
PHL
PNG
POL
PRT
PRY
ROM
RUS
RWA
SDN
SEN
SGP
SLE
SLV
SUR
SVK
SVN
SWE
SWZ
TCD
THA
TKM
TTO
TUN
TUR
TZA
UGA
UKRURY
USA
VEN
VNM
ZAF
ZMB
ZWE
20
10
010
20G
ini C
oeffi
cien
t In
com
e In
equa
lity
.6 .4 .2 0 .2 .4Gini Ethnic Inequality in 2000; GREG
Conditional on Region Effects
Income Inequality and Ethnic Inequality
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Cross-Country Analysis
I Graphical illustration
I Baseline regression results (conditional correlations)
I Sensitivity analysis (appendix)
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Graphical Illustration
Ethnic Inequality and Comparative Development
AFG
AGO
ALB
ARE
ARG
ARM
ATG
AUSAUT
AZE
BDI
BEL
BENBFA
BGD
BGR
BHRBHS
BIHBLRBLZ
BOL
BRA
BRN
BTN
BWA
CAF
CANCHE
CHL
CHN
CIV CMRCOG
COL
COM
CPV
CRICUB
CYPCZE
DEU
DJI
DMA
DNK
DOM
DZAECUEGY
ERI
ESP
EST
ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHAGINGMB
GNB
GNQ
GRC
GRD
GTM
GUYHND
HRV
HTI
HUN
IDN
IND
IRL
IRN
IRQ
ISL
ISRITA
JAM
JOR
JPN
KAZ
KEN
KGZ
KHM
KNA
KOR
KWT
LAO
LBN
LBR
LBY
LCA
LKA
LSO
LTU
LUX
LVA
MAR
MDA
MDG
MEX
MKD
MLI
MLT
MNG
MOZ
MRT
MUS
MWI
MYS
NAM
NER
NGA
NIC
NLDNOR
NPL
NZLOMN
PAK
PANPER
PHLPNG
POL
PRT
PRY
QAT
ROMRUS
RWA
SAU
SDNSEN
SGP
SLB
SLE
SLV
SOM
SUR
SVK
SVN
SWE
SWZ
SYC
SYR
TCDTGO
THA
TJK
TKM
TON
TTO
TUN
TUR
TZA UGA
UKR
URY
USA
UZB
VCT
VEN
VNM
VUTWSM ZAF
ZAR
ZMB
ZWE
46
810
12Ln
(GD
P pe
r Cap
ita) i
n 20
00
0 .2 .4 .6 .8 1Gini Ethnic Inequality in 2000; GREG
Unconditional Relationship
Ethnic Inequality and Comparative Development
AFG
AGO
ALB
ARE
ARG
ARM
ATG
AUSAUT
AZE
BDI
BEL
BENBFA
BGD
BGR
BHRBHS
BIHBLRBLZ
BOL
BRA
BRN
BTN
BWA
CAF
CANCHE
CHL
CHN
CIV CMRCOG
COL
COM
CPV
CRICUB
CYPCZE
DEU
DJI
DMA
DNK
DOM
DZAECUEGY
ERI
ESP
EST
ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHAGINGMB
GNB
GNQ
GRC
GRD
GTM
GUYHND
HRV
HTI
HUN
IDN
IND
IRL
IRN
IRQ
ISL
ISRITA
JAM
JOR
JPN
KAZ
KEN
KGZ
KHM
KNA
KOR
KWT
LAO
LBN
LBR
LBY
LCA
LKA
LSO
LTU
LUX
LVA
MAR
MDA
MDG
MEX
MKD
MLI
MLT
MNG
MOZ
MRT
MUS
MWI
MYS
NAM
NER
NGA
NIC
NLDNOR
NPL
NZLOMN
PAK
PANPER
PHL PNG
POL
PRT
PRY
QAT
ROMRUS
RWA
SAU
SDNSEN
SGP
SLB
SLE
SLV
SOM
SUR
SVK
SVN
SWE
SWZ
SYC
SYR
TCDTGO
THA
TJK
TKM
TON
TTO
TUN
TUR
TZAUGA
UKR
URY
USA
UZB
VCT
VEN
VNM
VUTWSM ZAF
ZAR
ZMB
ZWE
46
810
12Ln
(GD
P pe
r Cap
ita) i
n 20
00
0 .2 .4 .6 .8 1Gini Ethnic Inequality in 2000; ETHNOLOGUE
Unconditional Relationship
Ethnic Inequality and Comparative Development
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Graphical Illustration
Ethnic Inequality and Comparative Development,conditional on Region Effects
AFG
AGO
ALB
ARE
ARG
ARM
ATG
AUS
AUT
AZE
BDI
BEL BEN
BFABGD
BGR
BHR
BHS
BIHBLR BLZ
BOL
BRA
BRN
BTN
BWA
CAF
CANCHE
CHL
CHN
CIVCMR
COG
COLCOM
CPV
CRICUB
CYP
CZE
DEU
DJI
DMA
DNKDOM
DZA
ECU
EGY
ERIESP
EST
ETH
FINFJI
FRA
GAB
GBR
GEO
GHAGINGMB
GNB
GNQ
GRCGRD
GTM
GUYHND
HRV
HTI
HUN
IDN
IND
IRL
IRN
IRQ
ISL
ISR
ITA
JAM
JOR
JPN
KAZKEN
KGZ
KHM
KNA
KOR KWT
LAO
LBN
LBR
LBYLCALKA
LSO
LTULUX
LVA
MAR
MDA
MDG
MEX
MKD
MLI
MLT
MNGMOZ
MRT
MUS
MWI
MYS
NAM
NER
NGA
NIC
NLDNOR
NPL
NZL
OMNPAK
PAN
PER
PHLPNG
POLPRT
PRY
QAT
ROM
RUS
RWA
SAU SDN
SEN
SGP
SLB
SLE
SLV
SOM
SUR
SVK
SVN
SWE
SWZ
SYC
SYR
TCDTGO
THA
TJK
TKM
TON
TTO
TUN
TUR
TZAUGAUKR
URYUSA
UZB
VCT
VEN
VNM
VUTWSM
ZAF
ZAR
ZMB
ZWE
21
01
23
Ln(G
DP
per C
apita
) in
2000
.5 0 .5Gini Ethnic Inequality in 2000; GREG
Conditional on Region Fixed Effects
Ethnic Inequality and Comparative Development
AFG
AGO
ALB
ARE
ARG
ARM
ATG
AUS
AUT
AZE
BDI
BEL BEN
BFABGD
BGR
BHR
BHS
BIHBLR BLZ
BOL
BRA
BRN
BTN
BWA
CAF
CANCHE
CHL
CHN
CIVCMR
COG
COLCOM
CPV
CRICUB
CYP
CZE
DEU
DJI
DMA
DNKDOM
DZA
ECU
EGY
ERIESP
EST
ETH
FINFJI
FRA
GAB
GBR
GEO
GHAGINGMB
GNB
GNQ
GRCGRD
GTM
GUYHND
HRV
HTI
HUN
IDN
IND
IRL
IRN
IRQ
ISL
ISR
ITA
JAM
JOR
JPN
KAZKEN
KGZ
KHM
KNA
KOR KWT
LAO
LBN
LBR
LBYLCALKA
LSO
LTULUX
LVA
MAR
MDA
MDG
MEX
MKD
MLI
MLT
MNGMOZ
MRT
MUS
MWI
MYS
NAM
NER
NGA
NIC
NLDNOR
NPL
NZL
OMNPAK
PAN
PER
PHLPNG
POLPRT
PRY
QAT
ROM
RUS
RWA
SAU SDN
SEN
SGP
SLB
SLE
SLV
SOM
SUR
SVK
SVN
SWE
SWZ
SYC
SYR
TCDTGO
THA
TJK
TKM
TON
TTO
TUN
TUR
TZAUGAUKR
URYUSA
UZB
VCT
VEN
VNM
VUTWSM
ZAF
ZAR
ZMB
ZWE
21
01
23
Ln(G
DP
per C
apita
) in
2000
.5 0 .5Gini Ethnic Inequality in 2000; ETHNOLOGUE
Conditional on Region Fixed Effects
Ethnic Inequality and Comparative Development
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Regression Analysis
Baseline Results with Atlas Narodov Mira
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Ethnic Inequality 1.4707*** 1.4003*** 1.4985*** 1.1868*** 1.1099** 1.2446** 1.3447*** 1.4580*** [Gini Coeff., GREG] (0.2504) (0.3633) (0.4018) (0.4069) (0.5045) (0.4835) (0.5148) (0.4905)
5.87 3.85 3.73 2.92 2.20 2.57 2.61 2.97
Spatial Inequality 1 1.1508*** 0.1112 0.1186 0.0592 [Gini Coeff., Pixels] (0.2786) (0.3780) (0.3809) (0.3820)
4.13 0.29 0.31 0.15
Spatial Inequality 2 1.1612*** 0.0373 0.0880 0.1060 [Gini Coeff., Thiessen Polyg] (0.2559) (0.3961) (0.4084) (0.4155)
4.54 0.09 0.22 0.26
Log Number of Languages 0.3037*** 0.0887 0.0893 0.0912 0.1675 0.1723 [GREG] (0.0605) (0.0930) (0.0936) (0.0949) (0.1286) (0.1304)
5.02 0.95 0.95 0.96 1.30 1.32
Ethnic Inequality in Population 0.5164 0.5305 [Gini Coeff., GREG] (0.4472) (0.4465)
1.15 1.19
adjusted Rsquared 0.661 0.626 0.659 0.631 0.659 0.643 0.661 0.659 0.659 0.659 0.659observations 173 173 173 173 173 173 173 173 173 173 173Region Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Regression Analysis
Baseline Results with Ethnologue
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Ethnic Inequality 1.1281*** 1.0245*** 1.0839*** 1.2806*** 1.1734** 1.2309***1.0657*** 1.2554*** [Gini Coeff., ETHNO] (0.2267) (0.2975) (0.3817) (0.3694) (0.4625) (0.4528) (0.3747) (0.4300)
4.98 3.44 2.84 3.47 2.54 2.72 2.84 2.92
Spatial Inequality 1 1.1508*** 0.2035 0.1857 0.1531 [Gini Coeff., Pixels] (0.2786) (0.3524) (0.3617) (0.3508)
4.13 0.58 0.51 0.44
Spatial Inequality 2 1.1612*** 0.0732 0.0884 0.1967 [Gini Coeff., Thiessen Polyg] (0.2559) (0.4343) (0.4354) (0.4539)
4.54 0.17 0.20 0.43
Log Number of Languages 0.1730*** 0.0389 0.0357 0.0399 [ETHNO] (0.0467) (0.0741) (0.0759) (0.0751)
3.70 0.53 0.47 0.53
Ethnic Inequality in Population 0.6678* 0.7013* [Gini Coeff., ETHNO] (0.3727) (0.3742)
1.79 1.87
adjusted Rsquared 0.654 0.626 0.653 0.631 0.652 0.625 0.653 0.651 0.651 0.66 0.661observations 173 173 173 173 173 173 173 173 173 173 173Region Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Regression Analysis
Conditional on Other Aspects of Diversity
(1) (2) (3) (4) (5) (6) (7) (8)
Ethnic Inequality 1.4977*** 1.6771*** 1.5567*** 1.5782*** 1.1099*** 0.8248** 1.1186*** 1.1438*** [Gini Coeff.] (0.4011) (0.3955) (0.4075) (0.3924) (0.3716) (0.3417) (0.3744) (0.3756)
Ethnic Fragmentation 0.0097 0.1256 (0.3590) (0.3431)
Cultural Fragmentation 0.3417 0.0339 (0.3520) (0.3469)
Ethnolinguistic Polarization 1 0.464 0.5817 (0.9745) (0.9820)
Ethnolinguistic Polarization 2 1.9997 2.1173* (1.2688) (1.1802)
Spatial Inequality 2 0.0397 0.0739 0.0641 0.0563 0.0862 0.468 0.0577 0.0568 [Gini Coeff.] (0.4163) (0.4827) (0.3928) (0.3845) (0.4408) (0.4760) (0.4230) (0.4224)
adjusted Rsquared 0.657 0.694 0.653 0.658 0.65 0.675 0.646 0.651observations 173 150 172 172 173 150 172 172Region Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes
Atlas Narodov Mira (GREG) Ethnologue
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Regression Analysis
Sensitivity Analysis
I excluding ethnicities with less than 1% of a country’spopulation
I dropping any continent
I excluding regions where capital cities fall (ethnic mixing,outliers)
I excluding countries with a single ethnic-linguistic group
I conditioning on geography. [log of population, log land area,terrain ruggedness, distance to the coast, the percentage of arableland, 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
Ethnic Inequality and Economic Development across Countries
Regression Analysis
Overview of Cross-Country EvidenceI Strong association between ethnic inequality and economicdevelopment
I Not driven by the overall degree of spatial inequality
I Not driven by ethnic fragmentation or income inequality
I The negative correlation between ethnic fragmentation andeconomic development weakens (and turns insignificant inmany specifications) once we account for ethnic inequality
I Issues: Endogeneity
I Reverse causation
I Omitted variables
I Measurement error
Ethnic Inequality
Ethnic Inequality and Economic Development across Countries
Regression Analysis
Overview of Cross-Country EvidenceI Strong association between ethnic inequality and economicdevelopment
I Not driven by the overall degree of spatial inequality
I Not driven by ethnic fragmentation or income inequality
I The negative correlation between ethnic fragmentation andeconomic development weakens (and turns insignificant inmany specifications) once we account for ethnic inequality
I Issues: Endogeneity
I Reverse causation
I Omitted variables
I 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 withdevelopment, 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.
I Link inequality in endowments across ethnic homelands withethnic inequality
I Michalopoulos (2012) shows that ethnic groups reside ondifferent land endowments.
I Inequality in the distribution of ethnic land endowments mayexplain differences in economic performance across groups.
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 withdevelopment, 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.
I Link inequality in endowments across ethnic homelands withethnic inequality
I Michalopoulos (2012) shows that ethnic groups reside ondifferent land endowments.
I Inequality in the distribution of ethnic land endowments mayexplain differences in economic performance across groups.
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Idea and Preliminary Evidence
Geographic Origins of Ethnic Inequality
Using geo-referenced data sets we construct inequality measures(Gini coeffi cients) across ethnic homelands across the following di-mensions:
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 otherstreams)
I As in our earlier analysis we also calculate geographicinequality using boxes/pixels and Thiessen polygons.
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Idea and Preliminary Evidence
From Geographic to Economic Inequality
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
Gini Coef. Sea Distance 0.0489 0.1379 0.1857 0.0552 0.1090 0.1961 0.0355 0.1886 0.1756 0.0897 0.0276 0.0231 (0.0956) (0.1231) (0.1156) (0.1274) (0.1611) (0.1494) (0.0969) (0.1567) (0.1622) (0.1143) (0.1639) (0.1481)
Gini Coef. Elevation 0.4343 0.8727 0.6973 0.0953 0.1046 0.0754 0.6292 3.0353** 1.7750 0.0027** 0.0038*** 0.0019 (0.3304) (0.6673) (0.6334) (0.1206) (0.1262) (0.1178) (0.4782) (1.2705) 1.2926 (0.0010) (0.0011) (0.0012)
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** 0.4116** (0.0910) (0.1775) (0.1813) (0.0935) (0.1816) (0.1872) (0.0978) (0.2038) (0.1654) (0.0922) (0.1873) (0.1658)
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***0.4330*** (0.0550) (0.0773) (0.0733) (0.0970) (0.1275) (0.1280) (0.0621) (0.0857) (0.0875) (0.0786) (0.0997) (0.0934)
adjusted Rsquared 0.674 0.6674 0.6408 0.5967 0.5988 0.6078 0.7511 0.7537 0.7595 0.7169 0.714 0.7398Observations 173 169 162 151 150 150 168 166 160 144 143 142
Region Fixed Effects Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes YesControls No Spatial No Spatial No Spatial No Spatial
Excl. CapitalsAtlas Narodov Mira (GREG) Ethnologue
All Ethnic Areas Excl. Capitals All Ethnic Areas
Spatial& Level
Spatial& Level
Spatial& Level
Spatial& Level
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
A Composite Index of Inequality across Ethnic Homelands
Issues
I Several measures of inequality in land endowments acrossethnic homelands (one could construct many more)
I No strong priors which aspect of geographic differences wouldmatter most (elevation, access to water, land suitability for agriculture)
I Measurement issues
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
A Composite Index of Inequality across Ethnic Homelands
Approach -Factor Analysis
I Extract common factor(s) of inequality in geographicendowments across ethnic homelands
I principal component analysis
I Construct a composite index of inequality in geographicendowments across ethnic homelands
I Also construct a composite inequality index of geographicendowments using boxes/pixels and Thiessen polygons (ratherthan ethnic homelands)
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
A Composite Index of Inequality across Ethnic Homelands
Principal Component Analysis
Eigenvalue Variable 1st PC 2nd PC 3rd PC 4th PC
1st Principal Component 2.474 0.618 Gini Sea Distance 0.482 0.666 0.080 0.5632nd Principal Component 0.708 0.177 Gini Elevation 0.491 0.444 0.720 0.2083rd Principal Component 0.481 0.120 Gini Land Quality 0.479 0.531 0.689 0.1204th Principal Component 0.337 0.084 Gini Water Area 0.545 0.277 0.027 0.791
1st Principal Component 2.420 0.567 Gini Sea Distance 0.537 0.413 0.153 0.7202nd Principal Component 0.753 0.200 Gini Elevation 0.540 0.259 0.468 0.6503rd Principal Component 0.515 0.128 Gini Land Quality 0.402 0.873 0.230 0.1524th Principal Component 0.312 0.105 Gini Water Area 0.508 0.020 0.840 0.190
1st Principal Component 2.389 0.597 Gini Sea Distance 0.498 0.633 0.186 0.5632nd Principal Component 0.739 0.185 Gini Elevation 0.478 0.355 0.770 0.2293rd Principal Component 0.583 0.146 Gini Land Quality 0.445 0.643 0.610 0.1284th Principal Component 0.289 0.072 Gini Water Area 0.571 0.246 0.008 0.783
1st Principal Component 1.804 0.451 Gini Sea Distance 0.594 0.188 0.468 0.6272nd Principal Component 1.052 0.263 Gini Elevation 0.186 0.865 0.456 0.0953rd Principal Component 0.703 0.176 Gini Land Quality 0.466 0.455 0.722 0.2344th Principal Component 0.441 0.110 Gini Water Area 0.629 0.096 0.228 0.737
Factor Loadings
Panel A: Gini Coefficient GREG All Groups (173 countries)
Panel B: Gini Coefficient GREG Excluding Capitals (151 countries)
Panel C: Gini Coefficient ETHNOLOGUE All Groups (168 countries)
Panel D: Gini Coefficient ETHNOLOGUE Excluding Capitals (144 countries)
VarianceExplained
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Inequality on Land Endowments across Ethnic Homelands, Contemporary Ethnic Inequality, and Development
Inequality in Land Endowments across Ethnic Homelandsand Contemporary Ethnic Inequality
AFG
AGO
ALB
ARE
ARGARM
ATG
AUS
AUT
AZE
BDI
BEL
BENBFA
BGD
BGR
BHRBHS
BIHBLR
BLZ
BOL
BRA
BRN
BTN
BWA
CAF
CAN
CHE
CHL
CHN
CIV
CMRCOG
COL
COMCPV
CRI
CUB
CYPCZE
DEU
DJI
DMA
DNK
DOM
DZA
ECU
EGY
ERI
ESPEST
ETHFIN
FJIFRA
GAB
GBR
GEO
GHA
GIN
GMB
GNB
GNQ
GRC
GRD
GTM
GUYHND
HRVHTI
HUN
IDN IND
IRL
IRN
IRQ
ISL
ISR
ITA
JAM
JOR
JPN
KAZ
KEN
KGZ
KHM
KNAKOR
KWT
LAO
LBN
LBR
LBY
LCA
LKA
LSO
LTU
LUX
LVA
MAR
MDA
MDG
MEXMKD
MLI
MLT
MNG
MOZMRT
MUS
MWI
MYS
NAM
NER
NGA
NIC
NLD
NOR
NPL
NZL
OMN
PAK
PAN
PER
PHL
PNG
POLPRT
PRY
QAT
ROM
RUS
RWA
SAU
SDN
SEN
SGP
SLBSLE
SLV
SOM
SUR
SVK
SVN
SWESWZ
SYC
SYR
TCD
TGO
THA TJKTKM
TON
TTO
TUN
TUR
TZA
UGA
UKR
URYUSA
UZB
VCT
VEN
VNM
VUTWSM
ZAF
ZAR
ZMB
ZWE
0.2
.4.6
.81
Gin
i Coe
ffici
ent
Eth
nic
Ineq
ualit
y in
200
0G
RE
G
4 2 0 2 4Inequality in Geographic Endowments across Ethnic Homelands
1st Principal Component
Unconditional Relationship
Inequality in Geography and Contemporary Ethnic Inequality
AFGAGO
ALB
ARE
ARG
ARMATG
AUS
AUT
AZE
BDI
BEL
BEN
BFA
BGD
BGRBHR
BHS
BIH
BLR
BLZ
BOL
BRA
BRN
BTN
BWA
CAF
CAN
CHE
CHL
CHN
CIV
CMRCOG
COL
CPV
CRI
CUB
CYP
CZE
DEUDJI
DNK
DOM
DZA
ECU
EGY
ERI
ESP
EST
ETH
FIN
FJI
FRA
GAB
GBR
GEO
GHA
GIN
GMB
GNB
GNQ
GRC
GTM
GUY
HND
HRVHTI
HUN
IDN
IND
IRL
IRN
IRQ
ISL
ISR
ITA
JAM
JOR
KAZ
KEN
KGZ
KHM
KNAKOR
KWT
LAO
LBN
LBR
LBY
LCA
LKA
LSO
LTU
LUX LVA
MAR
MDA
MDG
MEX
MKD
MLI
MLT
MNG
MOZ
MRT
MUS
MWI
MYS
NAM
NER NGA
NIC
NLD
NOR
NPL
NZL
OMN
PAK
PAN
PER
PHL
PNG
POL
PRT
PRY
QAT
ROM
RUS
RWA
SAU
SDN
SEN
SGP
SLB
SLE
SLV
SOMSUR
SVK
SVN
SWE
SWZSYC
SYR
TCD
TGO
THA
TJKTKM
TON
TUN
TUR
TZAUGA
UKR
URY
USA
UZB
VCT
VEN
VNM
VUT
WSM
ZAF
ZAR
ZMB
ZWE
0.2
.4.6
.81
Gin
i Coe
ffici
ent
Eth
nic
Ineq
ualit
y in
200
0E
THN
OLO
GU
E
4 2 0 2 4Inequality in Geographic Endowments across Ethnic Homelands
1st Principal Component
Unconditional Relationship
Inequality in Geography and Contemporary Ethnic Inequality
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Inequality on Land Endowments across Ethnic Homelands, Contemporary Ethnic Inequality, and Development
Regression Results
(1) (2) (3) (4) (5) (6)
0.1227*** 0.1089*** 0.0973*** 0.1613*** 0.1523*** 0.1588***(0.0088) (0.0178) (0.0171) (0.0095) (0.0196) (0.0199)14.00 6.13 5.70 16.99 7.76 7.98
0.0109 0.0068 0.0075 0.006(0.0182) (0.0194) (0.0202) (0.0228)
0.6 0.35 0.37 0.26
Adjusted Rsquared 0.623 0.616 0.605 0.695 0.689 0.688Observations 173 169 162 168 166 160Region Fixed Effects Yes Yes Yes Yes Yes YesAdditional Controls No No Geography No No Geography
Atlas Narodov Mira (GREG) Ethnologue
Inequality in Geographic Endowmentsacross Ethnic Homelands (PC)
Spatial Inequality in GeographicEndowments (PC)
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Inequality on Land Endowments across Ethnic Homelands, Contemporary Ethnic Inequality, and Development
Ethnic Inequality in Land Endowments and ComparativeDevelopment
I Examine the association between inequality in geographicendowments across ethnic homelands and contemporarydevelopment
I Merits
I Sensitivity analysis (to the benchmark measure of inequalitybased on satellite images on light density at night)
I Predetermined measure of inequality across ethnic homelands
Ethnic Inequality
A Primer on the Origins of Ethnic Inequality
Inequality on Land Endowments across Ethnic Homelands, Contemporary Ethnic Inequality, and Development
Geographic Inequality Across Groups and Development
(1) (2) (3) (4) (5) (6)
0.1789*** 0.2311*** 0.1770** 0.1611*** 0.0580 0.1526*(0.0405) (0.0851) (0.0891) (0.0459) (0.0956) (0.0860)4.42 2.71 1.99 3.51 0.61 1.78
0.0755 0.048 0.0898 0.0268(0.0970) (0.1113) (0.0986) (0.1093)
0.78 0.43 0.91 0.24
adjusted Rsquared 0.629 0.646 0.668 0.623 0.639 0.673Observations 173 169 162 168 166 160Region FixedEffects Yes Yes Yes Yes Yes YesAdditional Controls No No Geography No No Geography
Atlas Narodov Mira (GREG) Ethnologue
Inequality in Geographic Endowmentsacross Ethnic Homelands (PC)
Spatial Inequality in GeographicEndowments (PC)
Ethnic Inequality
Micro Analysis within Sub-Saharan African Countries
Approach
Afrobarometer SampleI Geo-referenced household data (from AfrobarometerSurveys) on
I Ethnic affi liation
I Access to public goods (electricity, clean water, sewage system)
I Self-reported living conditions and education
I Merits
I Explore regional (within country) variation
I Explore within-country within-ethnicity variation (moversnon-movers)
I Heterogeneous effects (urban/rural households, etc).
I Decompose overall inequality into within and between-group
Ethnic Inequality
Micro Analysis within Sub-Saharan African Countries
Approach
Afrobarometer SampleI Geo-referenced household data (from AfrobarometerSurveys) on
I Ethnic affi liation
I Access to public goods (electricity, clean water, sewage system)
I Self-reported living conditions and education
I Merits
I Explore regional (within country) variation
I Explore within-country within-ethnicity variation (moversnon-movers)
I Heterogeneous effects (urban/rural households, etc).
I Decompose overall inequality into within and between-group
Ethnic Inequality
Micro Analysis within Sub-Saharan African Countries
Results
Baseline Within-Country Results
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
BetweenGroup Ineq. 4.9156***6.2329***4.8300***5.0611***2.3742***2.4819***1.8750***1.8256***1.6597**1.5788**1.8920***1.9359*** [Theil Index] (0.7928) (1.0646) (1.0006) (1.1533) (0.5946) (0.6418) (0.4573) (0.4840) (0.7693) (0.7102) (0.5349) (0.5335)
WithinGroup Ineq. 2.7822***5.8355***3.3152***3.7319***0.9359***1.0316*** 0.6892 0.4841 1.2840***1.1552*** 0.6372* 0.4502 [Theil Index] (0.9196) (1.0642) (0.5246) (0.9003) (0.2653) (0.3009) (0.4133) (0.5473) (0.2040) (0.2944) (0.3226) (0.4504)
Log Number of Groups 0.2881*** 0.0740** 0.6018*** 0.5680*** 0.2008*** 0.1715***0.1697***0.1551***0.2412***0.2291***0.2756*** 0.2935*** (0.0802) (0.0321) (0.0741) (0.0982) (0.0248) (0.0282) (0.0462) (0.0448) (0.0460) (0.0568) (0.0252) (0.0320)
adjusted Rsquared 0.359 0.517 0.509 0.552 0.215 0.243 0.216 0.220 0.314 0.304 0.175 0.186Observations 1301 861 1301 861 1286 856 1280 852 1292 858 1301 861Country FE Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes YesSample All >1 groups All >1 groups All >1 groups All >1 groups All >1 groups All >1 groups
UrbanizationLiving Conditions Education Piped Water Sewage System Electricity Grid
Ethnic Inequality
Micro Analysis within Sub-Saharan African Countries
Results
Afrobarometer Sample
I Explore within-country, within-ethnicity across regionvariation.
I People from the same ethnic group are present in manyenumeration areas
Ethnic Inequality
Micro Analysis within Sub-Saharan African Countries
Results
Within-Country Within-Ethnicity Results
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
BetweenGroup Ineq. 4.9156***6.2329***4.8300***5.0611***2.3742***2.4819***1.8750***1.8256***1.6597**1.5788**1.8920***1.9359*** [Theil Index] (0.7928) (1.0646) (1.0006) (1.1533) (0.5946) (0.6418) (0.4573) (0.4840) (0.7693) (0.7102) (0.5349) (0.5335)
WithinGroup Ineq. 2.7822***5.8355***3.3152***3.7319***0.9359***1.0316*** 0.6892 0.4841 1.2840***1.1552*** 0.6372* 0.4502 [Theil Index] (0.9196) (1.0642) (0.5246) (0.9003) (0.2653) (0.3009) (0.4133) (0.5473) (0.2040) (0.2944) (0.3226) (0.4504)
Log Number of Groups 0.2881*** 0.0740** 0.6018*** 0.5680*** 0.2008*** 0.1715***0.1697***0.1551***0.2412***0.2291***0.2756*** 0.2935*** (0.0802) (0.0321) (0.0741) (0.0982) (0.0248) (0.0282) (0.0462) (0.0448) (0.0460) (0.0568) (0.0252) (0.0320)
adjusted Rsquared 0.359 0.517 0.509 0.552 0.215 0.243 0.216 0.220 0.314 0.304 0.175 0.186Observations 1301 861 1301 861 1286 856 1280 852 1292 858 1301 861Country FE Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes YesSample All >1 groups All >1 groups All >1 groups All >1 groups All >1 groups All >1 groups
UrbanizationLiving Conditions Education Piped Water Sewage System Electricity Grid
Ethnic Inequality
Conclusion
Contribution
Look beyond Inequality and Fragmentation
I Construct indicators of ethnic inequalityI combining linguistic-ethnic maps with satellite images on lightdensity at night
I Strong negative correlation between ethnic inequality andcomparative development
I conditional on the overall degree of spatial inequality
I Exploration of the origins of ethnic inequalityI a sizeable fraction is driven by inequality of group-specificgeographic endowments
I Significant negative correlation between ethnic inequality inendowments and development
I conditional on the overall degree of spatial inequality ingeography
Ethnic Inequality
Conclusion
Contribution
Further Evidence
I Examine the association between ethnic inequality anddevelopment and public goods provision using micro-level datafrom Sub-Saharan African countries
I explore within country variation (account for country fixedfactors, policies and even ethnic factors.)
I use alternative to luminosity individual-level level data
I focus on most ethnically diverse place in the world whereethnicity is particularly salient
I 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 conflict
3. Ineffi cient provision of public goods
4. Alternative measures (various dimmensions)
5. Formal theoretical work
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