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Ethnic fragmentation, public good provision and inequality in India, 1988–2012

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  • Nishant Chadha
  • Bharti Nandwani

Abstract

We study how ethnic fragmentation in Indian districts influences the distribution of consumption, both overall and between social groups. In the absence of systematic evidence on inequality between social groups (horizontal inequality) during the sample period, we construct estimates of horizontal and overall inequality, and find that horizontal inequality is a small proportion of overall inequality, as well as that both overall and horizontal inequality have increased over time. Our empirical results indicate that more fragmented districts have higher inequality, but the relationship between fragmentation and horizontal inequality is weak. Additionally, we show that fragmentation increases inequality by lowering public good provision.

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  • Nishant Chadha & Bharti Nandwani, 2018. "Ethnic fragmentation, public good provision and inequality in India, 1988–2012," Oxford Development Studies, Taylor & Francis Journals, vol. 46(3), pages 363-377, July.
    • Handle: RePEc:taf:oxdevs:v:46:y:2018:i:3:p:363-377
    DOI: 10.1080/13600818.2018.1434498
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    Cited by:

    1. Carla Canelas & Rachel M. Gisselquist, 2018. "Horizontal inequality as a dependent variable," WIDER Working Paper Series 70, World Institute for Development Economic Research (UNU-WIDER).
    2. Chanda, Areendam & Kabiraj, Sujana, 2020. "Shedding light on regional growth and convergence in India," World Development, Elsevier, vol. 133(C).
    3. Carla Canelas & Rachel M. Gisselquist, 2018. "Horizontal inequality as a dependent variable," WIDER Working Paper Series wp-2018-70, World Institute for Development Economic Research (UNU-WIDER).
    4. Choudhury, Atrayee & Sahu, Sohini, 2022. "Revisiting the nexus between fiscal decentralization and government size - The role of ethnic fragmentation," European Journal of Political Economy, Elsevier, vol. 75(C).
    5. Choudhury, Atrayee & Sahu, Sohini, 2023. "Reconciling the mixed evidence in the fiscal decentralization-government size nexus using panel quantile regression," Economic Modelling, Elsevier, vol. 125(C).
    6. Marta Marson & Matteo Migheli & Donatella Saccone, 2021. "New evidence on the link between ethnic fractionalization and economic freedom," Economics of Governance, Springer, vol. 22(3), pages 257-292, September.

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