DOES INEQUALITY UNDERMINE THE RULE OF LAW? EVIDENCE FROM CROSS-COUNTRY PANEL DATA

Development consequences of various type of inequalities have been studied by different research scholars. Effects of income inequality, education inequality, health inequality, gender inequality on economic growth, GDP or GDP per capita and human capital are important in this regard. Present study investigates the impact of inequalities including income inequality on harmony. Inequalities may harmful for social values like harmony and trust. Harmony in a specific country has been measured by rule of law which is perception-based variables related to subjective wellbeing from Global Peace Index (GPI). By applying descriptive statistics and econometric techniques of panel data, we have found that income inequality has significant association with harmony. Empirical findings support that more unequal societies have less harmony. Reduction in inequalities is helpful to increase harmony among the people.