DISCUSSION

repec.nep.lma

n?u=RePEc:iza:izadps:dp10389&r=lma

6.1 Historical Prejudice

One possible explanation is historical discrimination that manifests as persistent inequality

for indigenous individuals with secondary education. Table VI shows the paper’s main result

organized by five year age brackets to identify any historical trends on differences in returns to

education. Indeed, we observe that the interaction term for secondary education and indigenous

greater than 10 percentage-points and statistically significant for middle-aged individuals with (46-

50 and 51-55 years of age). However, we also observe that this coefficient is consistently positive

for all age brackets, albeit not always significant, suggesting that historical discrimination does not

adequately explain our main finding. 22

[Table VI Goes Here]

6.2 Sectorial Discrimination or Preference

Similarly, if certain sectors discriminate disproportionately against a pool of secondaryeducated

indigenous individuals we would find difference in returns to education by employment

sector or industry. Table VII shows the baseline specification for a set of employment sectors in

Peru. Indigenous self-employed individuals and public sector workers experience statistically

significant differences in returns to secondary education. 23 Yet, because it seems that public

22

The exception is the interaction coefficient for 61-65 year olds, which is negative but

insignificant.

23

We also conducted separate regressions using standardized occupational categories adopted by

the ILO (ISCO-88) and Peru’s adaptation of the codes (CO-95) to separate workers into 7

categories based on required skill. We found that the interaction term for indigenous and

21

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