TY - JOUR AU - Alesina, Alberto F AU - Michalopoulos, Stelios AU - Papaioannou, Elias TI - Ethnic Inequality JF - National Bureau of Economic Research Working Paper Series VL - No. 18512 PY - 2012 Y2 - November 2012 DO - 10.3386/w18512 UR - http://www.nber.org/papers/w18512 L1 - http://www.nber.org/papers/w18512.pdf N1 - Author contact info: Alberto F. Alesina E-Mail: *NA user is deceased Stelios Michalopoulos Brown University Department of Economics 64 Waterman Street Providence, RI 02912 Tel: 401/863-2506 Fax: 401/863-1970 E-Mail: smichalo@brown.edu Elias Papaioannou London Business School Regent's Park Sussex Place London London NW1 4SA United Kingdom Tel: +44 (0) 207000 8432 Fax: +44 (0) 207000 8401 E-Mail: papaioannou.elias@gmail.com AB - This study explores the consequences and origins of between-ethnicity economic inequality both across and within countries. First, combining satellite images of nighttime luminosity with the historical homelands of ethnolinguistic groups we construct measures of ethnic inequality for a large sample of countries and show that the latter is strongly inversely related to comparative development. Second, differences in geographic endowments across ethnic homelands explain a sizable portion of ethnic inequality contributing to its persistence over time. Third, exploiting across-district within-African countries variation using individual-level data on ethnic identification and well-being from the Afrobarometer Surveys we find that between ethnic-group inequality is systematically linked to regional under-development. In this sample we also explore the channels linking ethnic inequality to (under) development, finding that ethnic inequality maps to political inequality, heightened perceptions of discrimination and undersupply of public goods. ER -