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The Origins of Inequality: Insiders, Outsiders, Elites, and Commoners

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  • Gregory K. Dow
  • Clyde G. Reed

Abstract

Hereditary economic inequality is unknown among mobile foragers, but hereditary class distinctions between elites and commoners exist in some sedentary foraging societies. With agriculture, such stratification tends to become more pronounced. We develop a model to explain the associations among productivity, population, property rights, and inequality. Using Malthusian dynamics, we show that regional productivity growth leads to enclosure of the best sites first, creating inequality between insiders and outsiders. Hereditary elite and commoner classes subsequently arise at the best sites. Food consumption becomes more unequal and commoners become poorer. These predictions are consistent with a wide range of archaeological evidence.

Suggested Citation

  • Gregory K. Dow & Clyde G. Reed, 2013. "The Origins of Inequality: Insiders, Outsiders, Elites, and Commoners," Journal of Political Economy, University of Chicago Press, vol. 121(3), pages 609-641.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/670741
    DOI: 10.1086/670741
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    1. Ian McDougall & Francis H. Brown & John G. Fleagle, 2005. "Stratigraphic placement and age of modern humans from Kibish, Ethiopia," Nature, Nature, vol. 433(7027), pages 733-736, February.
    2. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    3. Gregory Dow & Clyde Reed & Nancy Olewiler, 2009. "Climate reversals and the transition to agriculture," Journal of Economic Growth, Springer, vol. 14(1), pages 27-53, March.
    4. Dow, Gregory K. & Reed, Clyde G., 2011. "Stagnation and innovation before agriculture," Journal of Economic Behavior & Organization, Elsevier, vol. 77(3), pages 339-350, March.
    5. Samuel Bowles, 2003. "The First Property Rights Revolution," Theory workshop papers 505798000000000091, UCLA Department of Economics.
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    Cited by:

    1. Kaixian Mao & Huidi Lu & Bilian Ni Sullivan, 2023. "The paradox of political legitimacy: the political inclusion and entrepreneurs’ firm strategies," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1712-1742, September.
    2. Borcan, Oana & Olsson, Ola & Putterman, Louis, 2021. "Transition to agriculture and first state presence: A global analysis," Explorations in Economic History, Elsevier, vol. 82(C).
    3. Athey, Susan & Calvano, Emilio & Jha, Saumitra, 2016. "A Theory of Community Formation and Social Hierarchy," Research Papers 3467, Stanford University, Graduate School of Business.
    4. Gilles, Robert P. & Pesce, Marialaura & Diamantaras, Dimitrios, 2020. "The provision of collective goods through a social division of labour," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 287-312.
    5. Bruce Winterhalder, 2015. "Jared Diamond: The world until yesterday: what can we learn from traditional societies?," Journal of Bioeconomics, Springer, vol. 17(3), pages 303-307, October.
    6. Konstantinos Angelopoulos & Spyridon Lazarakis & Rebecca Mancy & Dorice Agol & Elissaios Papyrakis, 2023. "Resource Risk and the Origins of Inequality: Evidence from a Pastoralist Economy," CESifo Working Paper Series 10611, CESifo.
    7. Sania Nisar, 2014. "The real story of legislations in Pakistan," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 8(2), pages 87-94, Fall.
    8. Gregory K. Dow & Clyde G. Reed & Simon Woodcock, 2016. "The Economics Of Exogamous Marriage In Small-Scale Societies," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1805-1823, October.
    9. Stephan Heblich & Alex Trew, 2019. "Banking and Industrialization," Journal of the European Economic Association, European Economic Association, vol. 17(6), pages 1753-1796.
    10. Dow, Gregory K. & Reed, Clyde G., 2015. "The origins of sedentism: Climate, population, and technology," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 56-71.
    11. Dow, Gregory K. & Mitchell, Leanna & Reed, Clyde G., 2017. "The economics of early warfare over land," Journal of Development Economics, Elsevier, vol. 127(C), pages 297-305.
    12. Javier Mejía, 2018. "The Network Formation Origin of Tribal Societies," Documentos CEDE 16381, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Etro, Federico, 2017. "Research in economics and macroeconomics," Research in Economics, Elsevier, vol. 71(3), pages 373-383.

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    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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