Does it pay for Indigenous youth to go to school? Ethnic inequalities

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How to Explain

Ethnic and Gender Employment

Disparities in New Caledonia?

Samuel Gorohouna and Catherine Ris

LARJE, University of New Caledonia

2014 STATE OF THE PACIFIC CONFERENCE

ANU 17-19 june 2014

New Caledonia

Specific political organization :

 Very large autonomy from France

 Engaged in an emancipation process (transfers of responsibility from the French state to New Caledonia, referendum on the issue of independence)

NC differs from other French overseas territories and from other islands in the Pacific :

 One of the largest economies in the Pacific Island region

 High standard of living (GDP per capita comparable to New Zealand)

 High growth rate (3.3% per year between 2000 and 2011)

 High level of human development (HDI = 0.87)

Rich but Inequal: Geographic & ethnic Inequalities

Median income in the South is 2.5 times higher than in the Loyalty

Islands Province

Median income in the South is twice as high as in the

North Province

Population in 2009

Other 6%

Pacific

Islanders

12%

Several communitie s 8% na 1%

European

29%

Kanak 40%

Asian

3%

Ethnic Inequalities

Kanak have lower socio economic outcomes than other New Caledonians

25%

Graduated from

Higher Education

20%

15%

10%

5%

0%

Kanak Non-Kanak

10%

5%

0%

30%

Unemployment rate

25%

20%

15%

Kanak Non-Kanak

The data

-NC: to analyze the evolution of the situation with regards to education and employment for indigenous and nonindigenous people, we use:

1996 and 2009 Censuses (ISEE)

Individual characteristics: gender, age, province of residence, ethnicity, level of education etc.

 random sample: 50 897 observations.

| Marginal effects | on the probabilities of Employment

Ethnic Gap Male

Ethnic Gap Female

Ethnic Gap Whole population

Gender gap Non-Kanak

Gender gap Kanak

Gender gap Whole population

0

2009

1996

0,05 0,1 0,15 0,2 0,25 0,3 0,35

Blinder Oaxaca decomposition

Blinder-Oaxaca decomposition : “explained” and “unexplained part” of inequalities?

 the unexplained part of the gap in employment between Kanak and non-

Kanak remain almost the same between 1996 and 2009

 ethnicity seems to play a stronger role for men rather than for women.

“unexplained part”: other explanations

Observed characteristics

Social background

Health

Previous experience on the labor market

Number of children

Unobserved factors

The potential lack of job-related networks by family members and friends

Weaker motivation affected by previous experiences in the labour market, as experience or perception of discrimination may cause discouraged job seekers

Conclusions

Differences are generally greater between genders than between ethnic groups

Estimates of the ethnic gap are larger for males than for females

Blinder-Oaxaca decomposition :

 ethnicity seems to play a stronger role for men rather than for women.

Thank you

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