Group Inequality and Conflict

Abstract

This paper presents a theoretical model to show how distributional concerns can engender social conflict. We have a two-period model that highlights the crucial role of future inequality. Equality of assets and income in the current period does not stop conflict from arising the anticipated future inequality is significant. Further we find that the impact of inequality on conflict is not straightforward. Societies with low levels of inequality show no conflict; groups engage in conflict only when inequality exceeds a certain threshold level. Additionally the model shows that the link between inequality and conflict may be non-monotonic.

Does credit availability mitigate domestic conflict?

“…Note that the gini coefficients themselves are not statistically significant except for land ceiling (LC) and formal recognition of informal land reforms (CI). This is plausibly due to the fact that these average country relative measures of income dispersion may be below the threshold to start any violent conflict as highlighted in Dutta et al (2014).…”

Does social identity matter in individual alienation? Household-level evidence in post-reform India

“…It also signals eroding social cohesion that could force groups to continuously engage in conflicts. Dutta et al (2014), for instance, established that 'societies with low levels of inequality show no conflict; groups engage in conflict only when inequality exceeds a certain threshold level'.…”