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Unveiling the Cosmic Race: Racial Inequalities in Latin America

Author

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  • Luis Guillermo Woo-Mora

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This paper uses skin tone and income information for over a hundred thousand individuals across 31 Latin American countries to study racial inequalities during the last decade. First, I estimate the welfare consequences of racial inequality. Subnational regions with higher income inequality between racial groups have worse economic development. Next, I provide evidence of a skin tone income premium. In an eleven-color palette, each darker shade in skin tone on average leads to a 3% decrease in income, with heterogeneity across countries. My analysis suggests racial discrimination is the main mechanism behind this income premium.

Suggested Citation

  • Luis Guillermo Woo-Mora, 2022. "Unveiling the Cosmic Race: Racial Inequalities in Latin America ," PSE Working Papers halshs-03693205, HAL.
    • Handle: RePEc:hal:psewpa:halshs-03693205
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03693205
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    Cited by:

    1. Monroy-Gómez-Franco, Luis, 2023. "Shades of social mobility: Colorism, ethnic origin and intergenerational social mobility," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 247-266.
    2. Luis Ángel Monroy-Gómez-Franco & Roberto Vélez Grajales & Gastón Yalonetzky, 2023. "Unequal Gradients: Sex, Skin Tone and Intergenerational Economic Mobility," Papers 2023_01, Centro de Estudios Espinosa Yglesias.

    More about this item

    Keywords

    Race; Inequality; Economic Development; Discrimination;
    All these keywords.

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