In 2006, the Bolivian government introduced a large-scale cash transfer programme, Bono Juancito Pinto (BJP). Exploiting the exogenous variation of the programme expansion, this paper examines the impact of BJP on schooling and child labour. The analysis suggests that the transfer increases the likelihood of school enrolment but has no sizeable effect on the incidence of child labour. The results are in line with theoretical models that predict that if leisure and schooling decisions are substitutes, a school incentive will have either positive or neutral effects on child labour. Our findings support previous evidence that schooling and work decisions are not perfect substitutes among children.
Inequality and social exclusion receive considerable contemporary policy attention. In the field of international development, inequality - both vertical (between individuals and households) and horizontal (between groups) - is a core concern in the 2030 Agenda for Sustainable Development. Despite considerable attention to horizontal inequality in both research and policy, there are notable gaps and weaknesses in our empirical knowledge about how it manifests within and across countries and over time. This has implications not only for the rigour with which we can build and test theories in this area, but also for informing policy, monitoring trends, and evaluating the impact of interventions. This paper probes what more can be learned from existing survey and census data to address empirical gaps. It argues that key methodological, conceptual, and - in particular - political issues pose persistent challenges for such survey and census data on topics relating to "ethnicity" broadly defined. These challenges imply not only real limits in the so-called data revolution for sustainable development, but also risks to "evidencebased" policy making in this area when it relies too heavily on quantitative data. This paper serves also as the introductory and framing paper for a collection of studies entitled "Horizontal Inequality in the Global South: Data, Measurement, and Trends", to be published in a forthcoming UNUWIDER special issue of Social Indicators Research.
With the second largest indigenous population by percentage in Latin America, Guatemala is an important case for understanding horizontal inequality and indigenous politics. This paper presents new analysis of survey data, allowing for consideration both of indigenous and ladino populations, as well as of ethno-linguistic diversity within the indigenous population. Overall, our analysis illustrates both the depth and persistence of horizontal inequalities in educational and labour market outcomes, and a broad trend towards greater equality. Earnings gaps have been reduced by, among other factors, improved educational outcomes. Ethnic groups also show distinct patterns of wages and wage gaps, and there is evidence of a 'sticky floor' effect at the lower ends of the income spectrum affecting some groups more than others. Our findings suggest that the focus on the indigenous/non-indigenous divide found in much of the economic literature on Latin America obscures meaningful diversity within the indigenous population. We posit that further consideration of such within-group diversity has implications for broader theories of ethnic politics, and in particular for understanding the comparative weakness of indigenous political mobilization in Guatemala at the national level.