MILITARY EXPENDITURES AND INEQUALITY: EMPIRICAL EVIDENCE FROM GLOBAL DATA

Hamid E. Ali

97 citations0/0 files storedDefence and Peace Economics

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Defense, Military, and Policy Studies Income, Poverty, and Inequality Natural Resources and Economic Development

Abstract

A substantial body of literature has uncovered a robust relationship between institutions including unionization and political democracy and economic inequality. This paper examines the effect of military spending on inequality, controlling for the size of the armed forces, GDP growth, per capita income, and other possible determinants. Using a panel regression with country level observations from 1987–1997, we obtained consistent estimates that there is a positive effect of military expenditure on pay inequality. This relationship is robust across variable definitions and model specifications. Given the close relationship between pay and income, this result suggests that a country’s increases in military spending could increase income inequality.

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2009Military Spending and Inequality: Panel Granger Causality Test 2011The “new” military and income inequality: A cross national analysis 2022Militarization and Gender Inequality: Exploring the Impact 2022Militarization, women's labor force participation, and gender inequality: Evidence from global data

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