What Do We See from Inequality and Violence? Evidence from a Global RDD Approach
摘要
This study examines the relationship between income inequality and violence using a global regression discontinuity framework with data from 1990 to 2020. We identify discontinuities in violence outcomes at specific levels of income inequality where the regression discontinuity assumptions hold. Empirical estimations are conducted using a novel approach that applies local linear regressions with optimal bandwidths, employing robust and bias-corrected estimators. Additional sensitivity analyses are also performed. Our findings reveal a positive and statistically significant discontinuity at a Gini index cutoff of 41.0, indicating an effect of inequality on violence with semi-elasticities of 0.43 and 0.46. This relationship appears particularly driven by data from Latin America, suggesting a context-specific generalization of the inequality–violence nexus. The validity of this cutoff for the broader sample is supported by the absence of manipulation in income inequality, robustness to alternative bandwidth choices, and balanced covariates.