Citation

Discussion Paper Details

Please find the details for DP14366 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Fanning The Flames: Rainfall Shocks, Inter-Ethnic Income Inequality, and Conflict Intensification in Mandate Palestine

Author(s): Laura Panza and Eik Swee

Publication Date: January 2020

Keyword(s): Income inequality, Inter-ethnic violence and Mandate Palestine

Programme Area(s): Economic History

Abstract: We examine the effect of inter-ethnic income inequality on conflict intensification in Mandate Palestine, using a novel panel dataset comprising district-level characteristics and conflict intensity across 18 districts during 1926-1945. We instrument Jewish-Arab income inequality by combining the annual variation in rainfall shocks with cross-sectional variation in pre-Mandate crop intensity, to extract exogenous changes in inequality between non-agrarian Jews and agrarian Arabs. We find a substantial e??ect of inequality on conflict intensification, especially during periods where the relationship between Arabs and Jews were particularly strained. Our estimates are driven by Arab-initiated attacks, reflecting the local average treatment effects of Arab farmers who move from agrarian work to violence in response to adverse rainfall shocks; in other words, economic shocks coupled with existing economic segregation facilitate the transition into violence when opposing groups are economic substitutes. Further investigations suggest that inequality-driven violence was most likely an expression of resentment, rather than the result of opportunity costs or appropriation

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14366

Bibliographic Reference

Panza, L and Swee, E. 2020. 'Fanning The Flames: Rainfall Shocks, Inter-Ethnic Income Inequality, and Conflict Intensification in Mandate Palestine'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14366