Abstract

http://ssrn.com/abstract=1639826
 
 

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Violent Conflict and Inequality


Cagatay Bircan


European Bank for Reconstruction and Development

Tilman Brück


Stockholm International Peace Research Institute (SIPRI); Institute for the Study of Labor (IZA)

Marc Vothknecht


German Institute for Economic Research (DIW Berlin)

June 2010

DIW Berlin Discussion Paper No. 1013

Abstract:     
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.

Number of Pages in PDF File: 38

Keywords: Conflict, Inequality, Reconstruction, Income Distribution

JEL Classification: O11, O15

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Date posted: July 15, 2010  

Suggested Citation

Bircan, Cagatay and Brück, Tilman and Vothknecht, Marc, Violent Conflict and Inequality (June 2010). DIW Berlin Discussion Paper No. 1013. Available at SSRN: http://ssrn.com/abstract=1639826 or http://dx.doi.org/10.2139/ssrn.1639826

Contact Information

Cagatay Bircan
European Bank for Reconstruction and Development ( email )
One Exchange Square
London, EC2A 2JN
United Kingdom
+442073388508 (Phone)
+442073386111 (Fax)
HOME PAGE: http://www.ebrd.com/pages/research/economics/researchers/cagatay-bircan.shtml
Tilman Brück
Stockholm International Peace Research Institute (SIPRI) ( email )
Signalistgatan 9, SE-169 70
Solna
Sweden
HOME PAGE: http://www.sipri.org
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Marc Vothknecht (Contact Author)
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
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