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Ethnic Polarization, Perceived Income, and Political Mobilization

Thu, August 29, 8:00 to 9:30am, Marriott, McKinley

Abstract

Studies of income inequality and redistribution preferences tend to focus on individuals’ actual, as opposed to perceived, positions in the income distribution. However, recent work demonstrates that people often misperceive their position on the income distribution, and that local conditions matter. Another body of work focuses on the relationship between between-group inequality and ethnic salience. We propose that local inequality and ethnic polarization can affect preferences vis a vis beliefs about relative inequality, and that this can have important implications for a neighborhood’s ability to collectively mobilize for development outcomes. We develop and test an argument for the case of urban Indian slums. We show that in caste-polarized neighborhoods – neighborhoods where income inequality is concentrated by caste group - misperceptions about income inequality are exacerbated, such that the richer caste group believes they are better off than they are, and thus has less preference for neighborhood-level development schemes. We argue local caste polarization can exacerbate the poor conditions faced by low-status groups, and should be taken into account in targeting development schemes. Moreover, we contribute to a growing literature on ethnic polarization by demonstrating an effect on preferences and mobilization capacity at a very fine geographical scale.

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