Despite extensive scholarly interest in the association between economic inequality and political violence, we know surprisingly little about the micro-level mechanisms through which the former influences the latter. Drawing on pioneering theories of political violence, social psychological research on intergroup attitudes and behavior, and prospect theory, we examine individual-level mechanisms relating inequality to political violence. Our theoretical analysis generates two propositions that diverge from extant civil conflict research. Despite being the key explanatory mechanism, perceived lower economic status vis-à-vis other individuals (relative deprivation) is unlikely to motivate people to participate in political violence. By contrast, although virtually unexplored, a projected decrease in one’s own economic status (prospective decremental deprivation) is likely to motivate participation in political violence. Multilevel analyses of nationally representative samples from a large number of countries provide strong evidence to support these claims. Based on this, we posit that focusing on economic changes, rather than the economic status quo, is key to understanding political violence. We conclude by discussing how focusing on temporal changes, as contrasted to static characteristics, can advance the study of civil conflict writ large.