It's made of wood similar to the original Fisher-Price Little People. About the same height and with the same size base as the original Little People, too.
This is apparently some sort of animal but the animals from the original Little People sets that I've come across are all of the four-legged variety.
I'm stumped. Any ideas?
UPDATE: The mystery is solved thanks to the People ID section of ThisOldToy.com. Apparently this is the remnants of a mid-1960's Fisher-Price Little People dog. The yellow plastic on either side originally held larger ears in place. Now I can sleep tonight.