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Inequality persistence through vertical vs. horizontal coalitions

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  • Pellicer, Miquel

Abstract

This paper aims to contribute to a better understanding of the observed high persistence of cross-country differences in inequality. It focuses on the interactions between inequality and the predominance of either horizontal coalitions (among individuals of similar economic status) or vertical ones (among individuals with different economic status). A model is proposed showing that the interactions between inequality and the type of coalition formed in a society can give rise to self-sustained social contracts where inequality persists. Key mechanisms of the model are illustrated using the transformation in inequality, redistribution and social relations in Modern England, as well as the "paternalist" system of the US South at the beginning of the XXth century.

Suggested Citation

  • Pellicer, Miquel, 2009. "Inequality persistence through vertical vs. horizontal coalitions," Journal of Development Economics, Elsevier, vol. 90(2), pages 258-266, November.
    • Handle: RePEc:eee:deveco:v:90:y:2009:i:2:p:258-266
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    1. Miquel Pellicer & Vimal Ranchhod & Mare Sarr & Eva Wegner, 2011. "Inequality Traps in South Africa: An overview and research agenda," SALDRU Working Papers 57, Southern Africa Labour and Development Research Unit, University of Cape Town.
    2. Pellicer, Miquel & Wegner, Eva, 2013. "Electoral Rules and Clientelistic Parties: A Regression Discontinuity Approach," Quarterly Journal of Political Science, now publishers, vol. 8(4), pages 339-371, October.
    3. Miquel Pellicer & Eva Wegner & Lindsay Benstead & Harold Kincaid & Ellen Lust & Juanita Vasquez, 2014. "The demand side of clientelism: The role of client's perceptions and values," SALDRU Working Papers 140, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Kyriacou, Andreas P., 2023. "Clientelism and fiscal redistribution: Evidence across countries," European Journal of Political Economy, Elsevier, vol. 76(C).
    5. Ebney Ayaj Rana & Mustafa Kamal, 2018. "Does Clientelism Affect Income Inequality? Evidence from Panel Data," Journal of Income Distribution, Ad libros publications inc., vol. 26(1), pages 1-24, March.

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