Social Exclusion: Residential Segregation in Bolivian Cities

This study analyzes the impact of ethnic-based residential segregation on income and education outcomes in Bolivian cities. Three results stand out in the analysis. First, we find significant and negative segregation effects on income generation in both across-city and intra-city comparisons. Second, we find individual and neighborhood-level interactions between ethnicity and segregation to be significantly and negatively correlated with income and schooling attainment. Finally, we find positive social capital effects for recent migrants and young workers and negative human capital effects for non-migrants and older workers. We attempt to control for selection biases with three instruments for residential segregation. We also include potential intergenerational determinants of income and schooling through expanded measures of parental human and social capital.