How to address discrimination and inclusion in Latin American cities

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Latin America and the Caribbean (LAC) cities are spaces of contrast. Extreme poverty coexists with extreme wealth, generating situations of deep-rooted inequality. Discrimination in the bustling cities of Latin America often goes unnoticed. Yet, it significantly impacts the lives of minorities and disadvantaged groups. Understanding and addressing these barriers is not just a matter of equity; it's crucial for harnessing the full potential of urban environments in fostering inclusive growth and social justice.

At the IDB's Housing and Urban Development Division we work to improve the living conditions in the LAC's cities. That is why we are studying the phenomenon of discrimination against several vulnerable groups in the urban spaces of the Latin American region. We aim to maximize development opportunities for the region's most disadvantaged urban populations.

This article, that belongs to a series of discrimination studies, offers an overview of our research and findings in urban spaces. Keep reading to learn more details and be part of the solution!

Unveiling the Scale of Discrimination

Discrimination and vulnerability are two sides of the same coin. For that reason, at the IDB we want to understand how to reduce urban discrimination and equalize opportunities for the affected people. These are some of the vulnerable populations we are studying now:

Discrimination and inclusion of the residents of slums

About 106 million people in LAC live in slums. Some national and local authorities have dedicated significant efforts to urbanizing those slums and providing basic services to their population, tenure rights, and social integration interventions, among others. Despite the advances in the implementation of these programs, and the obvious progress in the "urban" inclusion of the neighborhoods (that now count with access to essential services, better tenure rights, etc…), the "social" inclusion of their inhabitants seems to fall behind. There is little evidence of the barriers slum dwellers face to take advantage of the unique opportunities that integration into the formal city signifies to them. In two studies, we investigated job market discrimination against workers residing in slums. We used a correspondence study setting and a lab experimental methodology to conduct our research. Our findings indicate that job applicants who mention in their CVs that they live in a slum are significantly less likely to be employed. This discrimination deprives them of labor opportunities, exacerbating poverty and exclusion in society. Providing nudges of information to the recruiters about the discrimination that slum dwellers face, was able to change the behavior of recruiters and increased the chances of slum dwellers to become employed. Access to our findings here.

Migrants

Migrants are one of the most vulnerable groups in the cities of LAC. Our cities are experiencing an increasing movement of migrants. Despite fleeing economic and humanitarian crises in search of security in another territory, migrants face significant hurdles in securing basic housing - a fundamental step towards stability and integration - after arriving in a new country.

Our recent studies on this topic reveal stark discrimination in housing markets against migrants who want to access housing in some of the major cities of the region. In an experimental lab setting, migrants were selected 24.5% less than local families. Not being able to access housing poses a limitation for the integration in access to basic services and labor markets, among others, diminishing the potential contribution of migrants' talent to the local economy.

LGBTQ+ Community

While social rights evolve in the region, traditional social views and stigmas are still present, limiting these rights. However, there is little evidence on how society perceives certain population characteristics.

In a study to measure discrimination in labor markets, our research shows an exciting picture for the LGBTQ+ community. Our findings show that, while female LGBTQ+ candidates sometimes receive favorable treatment, male counterparts face notable discrimination in hiring and wages, underscoring the nuanced nature of bias in the labor market.

What can be done to promote inclusion and combat discrimination? A call to action for policymakers and practitioners

Ensuring fair access to housing, labor, and, in general terms, access to the opportunities that cities offer to minorities, is vital to fostering inclusive growth and social justice. The evidence of our studies is clear: discrimination in LAC cities is a multifaceted issue that requires a multi-pronged approach. Policymakers and practitioners must implement comprehensive strategies that include mechanisms to measure and monitor discriminatory practices, generate legal frameworks, generate awareness of discriminatory practices, and implement specific initiatives and interventions to prevent and reduce discrimination against the most vulnerable population. To support governments in addressing the rise of xenophobia, the IDB created the Citizen Perception Laboratory on Migration, which provides information, resources and tools.

What initiatives have proven effective in reducing discrimination and promoting inclusion?

In our studies, we found causal effects demonstrating that encouraging fair housing practices through providing information, for example, on the challenges that a minority might face due to discrimination, can mitigate biases against migrants. For slum dwellers, the LGBTQ+ community, and migrants, targeted interventions such as affirmative action, awareness campaigns for the general population, community development programs, and HR training can promote inclusivity and fairness in employment opportunities. This evidence has been demonstrated in our studies "Discrimination against workers living in slums" and "Discrimination against migrants in the housing market.

Future steps should focus on continuous research, monitoring of implemented policies, and adapting strategies to evolving urban dynamics.

Addressing Urban Inclusion and Discrimination

Addressing discrimination in LAC cities is about unlocking the full potential of urban centers as places of opportunity, growth, and innovation. By working together, policymakers, practitioners, and communities can transform these cities into truly inclusive spaces where everyone has the chance to thrive.

IDB's Housing and Urban Development commitment to understanding and addressing discrimination continues to grow. Some of the topics we are currently researching include studies on discrimination against disabled workers, afro descendants, indigenous people, and women in the Latin American region. The agenda is expanding to include other critical markets like public sector employment and credit markets.

Stay tuned for more insights and solutions as we delve deeper into these vital issues.

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