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Violent Conflict and Inequality

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  • Cagatay Bircan
  • Tilman Brück
  • Marc Vothknecht

Abstract

This paper analyzes the distributive impacts of violent conflicts, which is in contrast to previous literature that has focused on the other direction. We use cross-country panel data for the time period 1960-2005 to estimate war-related changes in income inequality. Our results indicate rising levels of inequality during war and especially in the early period of post-war reconstruction. However, we find that this rise in income inequality is not permanent. While inequality peaks around five years after the end of a conflict, it declines again to pre-war levels within the end of the first post-war period. Lagged effects of conflict and only subsequent adjustments of redistributive policies in the period of post-war reconstruction seem to be valid explanations for these patterns of inequality. A series of alternative specifications confirms the main findings of the analysis.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.357459.de/dp1013.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1013.

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Length: 34 p.
Date of creation: 2010
Date of revision:
Handle: RePEc:diw:diwwpp:dp1013

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Keywords: Conflict; Inequality; Reconstruction; Income Distribution;

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References

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Citations

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Cited by:
  1. José María, Larrú, 2012. "La relación entre la ayuda al desarrollo y la desigualdad. Evidencia y justificación teórica
    [Aid and inequality relationship. Evidence and theoretical justification]
    ," MPRA Paper 38857, University Library of Munich, Germany.
  2. Juan Carlos Muñoz-Mora, 2010. "Los Caminos del Café: Aproximación a la Relación entre el Conflicto Armado Rural y la Producción Cafetera Colombiana," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  3. Brück, Tilman & Llussá, Fernanda & Tavares, José, 2010. "Perceptions, Expectations, and Entrepreneurship: The Role of Extreme Events," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8098, C.E.P.R. Discussion Papers.
  4. Oloufade, Djoulassi K., 2012. "Trade Openness, Conflict Risk and Income Inequality," MPRA Paper 40702, University Library of Munich, Germany, revised Feb 2013.

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