Poverty and Inequality Among Ethnic Groups in Chile

SummaryDespite two decades of rapid growth, indigenous Chileans are reported to face high poverty rates. However, non-representative surveys provide imprecise estimates of income, so quantifying poverty and inequality has been difficult. This paper estimates poverty and inequality using poverty mapping. In contrast to the previous studies, however, we use ethnicity rather than geography as a basis for disaggregation. We find that indigenous Chileans are indeed poorer, although we also find significant heterogeneity among ethnic groups. In addition, income inequality is generally lower for indigenous groups. These reliable estimates of poverty and inequality may improve the antipoverty targeting criteria used in Chile.