Economics at your fingertips  

Inequality and Fractionalization

Gregory Casey () and Ann Owen ()

World Development, 2014, vol. 56, issue C, 32-50

Abstract: We present evidence that ethnic fractionalization explains variations in per capita income, institutions, and schooling better than inequality. To do so, we identify instruments for ethnic fractionalization and inequality based on historical experience and geography. While simultaneously instrumenting for both variables, we find that ethnic fractionalization is negatively related to the level of income, schooling, and institutional quality, but inequality is not consistently related in a statistically significant way. If anything, the evidence suggests that inequality is positively related to economic development. We also show that previous results indicating negative effects of inequality may be inadvertently capturing the impact of ethnic fractionalization.

Keywords: inequality; ethnic fractionalization; growth (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Inequality and fractionalization (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.worlddev.2013.10.007

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2021-02-01
Handle: RePEc:eee:wdevel:v:56:y:2014:i:c:p:32-50