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Inequality and Social Unrest in India

Author

Listed:
  • Mathieu Couttenier

    (ENS de Lyon)

  • Jeremy Laurent-Lucchetti

    (GSEM, Geneva)

  • Lore Vandewalle

    (IHEID, Graduate Institute of International and Development Studies, Geneva)

Abstract

We show that inequality triggers social unrest in rural India. We develop a theoretical framework where social unrest is rationally used by civilians to oppose (unfair) surplus sharing by the elite. We predict that the probability of observing social unrest in a village increases with the sum of distances between the (log) average and the lowest incomes. We bring our measure to the data using bank account details in 2,197 Indian villages. We document that a 10% increase in our inequality measure increases by 6.5% the unconditional probability of observing social unrest in a village in a given month.

Suggested Citation

  • Mathieu Couttenier & Jeremy Laurent-Lucchetti & Lore Vandewalle, 2023. "Inequality and Social Unrest in India," IHEID Working Papers 08-2023, Economics Section, The Graduate Institute of International Studies.
    • Handle: RePEc:gii:giihei:heidwp08-2023
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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