Employment, Democracy and Transparency, and Health. The sample size encompasses more than

20,000 households and 80,000 individuals randomly sampled at the departmental and national


The other source is district-level data from Peru’s Ministry of Development and Social

Inclusion, using figures from the Development Cooperation Fund (FONCODES). This data is

available for 1999 and 2001. It includes social and demographic indicators, and expenditure figures

for Peru’s 1,817 administrative districts. The quantitative analysis in this paper focuses exclusively

on the heads of households and their spouses for whom self-identification of ethnicity is

available. 16

Table I provides summary statistics. Unsurprisingly, indigenous workers are on average

more likely to be informal by a large margin regardless of the measure of informality employed.

In addition, indigenous individuals are far less likely to have completed either secondary or tertiary

education, and are more likely to have incomplete primary education. Indigenous Peruvians are

also more likely to live in rural areas and to have migrated to other parts of the country. Indigenous

Peruvians are on average more likely to be self-employed and to work at microenterprises (firms

with 5 or fewer workers). Overall, the identification of indigenous and non-indigenous groups

clearly creates two characteristically different groups, where indigenous workers are poorer and

less educated (Hall and Patrinos 2006; Ñopo 2012).

[Table 1 Goes Here]


We opted for Peru’s national survey, in place of employment-specific surveys because

employment surveys do not include ethnicity identifiers. Peru conducts an employment-specific

survey: Encuesta Permanente de Empleos (EPE).


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