Working Paper: CEPR ID: DP13368
Authors: Roland Hodler; Sorawoot Srisuma; Alberto Vesperoni; Noemie Zurlinden
Abstract: 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 Codes: D31; D63; Z13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Ethnic stratification (J15) | Trust in people (Z13) |
| Ethnic stratification (J15) | Trust in local political institutions (P37) |
| Ethnic stratification (J15) | Trust in relatives, neighbors, acquaintances (Z13) |
| Ethnic stratification (J15) | Trust (G21) |