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Clientelism and violence: The politics of informal economy

Abhirup Sarkar and Abhinandan Sinha

Economic Modelling, 2022, vol. 114, issue C

Abstract: As opposed to acute political violence associated with riots and military coups, the paper addresses the problem of chronic and persistent political violence prevalent in less developed economies. In such economies, a significant part of the population is engaged in the informal sector where property rights are not well-defined and where political protection of rights is necessary for survival. To attract informal sector voters, political parties indulge in violence which signal their strengths to protect ill-defined rights. The paper shows that (a) a larger informal sector leads to more violence; (b) an increase in the relative size of the informal sector increases the winning probability of the worse performing party; (c) both worse performing and better performing parties indulge into same level of violence provided they have the same cost of causing violence. A high correlation between informal employment and political crimes among the Indian states empirically supports our argument.

Keywords: Informal sector; Electoral violence; Political clientelism; Global games (search for similar items in EconPapers)
JEL-codes: D72 D74 O12 O17 P48 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:114:y:2022:i:c:s0264999322001523

DOI: 10.1016/j.econmod.2022.105906

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