Abstract

In Mexico, income and European appearance are strongly positively correlated. Racist attitudes, overt preference for the European appearance and high unemployment combine to maintain this racial economic hierarchy. Free market policies could help to reduce the racial economic inequality. These policies, however, go against the economic interests of the wealthy white oligarchy and against the prevailing political ideology of the dark skinned lower classes. Thus, the current racial economic inequality, with its negative economic consequences, is likely to continue.

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