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Violent Conflict and Inequality

  • Bircan, Cagatay

    ()

    (University of Michigan)

  • Brück, Tilman

    ()

    (ISDC - International Security and Development Center)

  • Vothknecht, Marc

    ()

    (DIW Berlin)

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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4990.

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Length: 37 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:iza:izadps:dp4990
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