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Does inequality make us rebel? A revisited theoretical model applied to South Mexico

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Author Info
Jean-François Maystadt (Université Catholique de Louvain)

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Abstract

Since Collier and Hoeffler (1998, 2004), it has been supported that inequality, measured at national level, does not affect the risk of conflict. Such a result has been much debated in the literature. Based on a revisited theoretical framework, the purpose of the paper is to explore the role of inequality in localized conflicts. We argue that previous findings might be biased by the myopic nature of cross-country analysis. Consistently with the model, Probit estimations indicate that income inequality measured at municipal level was significant in motivating people to support the rebellion in South Mexico. At this geographical level, we also find an increase in income per capita could exacerbate the risk of conflict in a situation where the rebel leader would have greater incentives to loot the local production compared to the opportunity cost associated with fighting for the worker.

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Publisher Info
Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 41.

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Length: 37 pages
Date of creation: Feb 2008
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Handle: RePEc:hic:wpaper:41

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Related research
Keywords: Rebellion; Inequality; Income; Mexico;

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Find related papers by JEL classification:
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models

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    Other versions:
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    Other versions:
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  16. Reynal-Querol, Marta, 2005. "Does democracy preempt civil wars?," European Journal of Political Economy, Elsevier, vol. 21(2), pages 445-465, June. [Downloadable!] (restricted)
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