The political economy of land and labour in sub-Saharan Africa
How resources and wealth are distributed among the population has fundamental implications for welfare. When markets and institutions fail, power relationships between groups shape allocation of resources and yield to inefficient outcomes. These issues are particularly salient on the African continent. Economic inequalities between ethnic groups persist because state institutions are prone to capture by ethnic interests. Individuals or groups who hold political power often favour co-ethnics in the allocation of resources (‘ethnic favouritism’).
The intervention
The researchers hypothesise that politicians engage in strategic interactions with traditional leaders, granting them control over agricultural land. The study analyses the relationship between electoral outcomes and the allocation of land and employment in African democracies, examining whether individuals of the same ethnicity as elected politicians enjoy a comparative advantage in the labour market, testing whether this effect is concentrated in the agricultural sector, and providing evidence on the role of ethnic chiefs in society.
The impact
This paper will offer the first analysis of the health of African democracies and its interaction with traditional forms of government, such as traditional chieftainship. It uncovers a potential new driver shaping
the occupational choices in Africa where, as in most parts
of the developing world, most individuals are still self-employed farmers involved in subsistence agriculture. The distortions that ethnic politics may introduce into these markets therefore has critical implications for the lives of hundreds of millions of individuals.
Co-authors
- Francesco Amodio, Assistant Professor of Economics, McGill University
- Sebastian Hohmann, Economist and Data Scientist
Giorgio Chiovelli is Assistant Professor of Economics, Universidad de Montevideo, and former LBS Research Fellow. Giorgio’s research focuses on development economics, political economy and economic growth. He is interested in the empirical analysis of the political economy of development in developing countries, combining theory-based applications with spatial econometrics tools and geographic information systems. His research has been published in the Journal of the European Economic Association.