Wage Inequality and Violent Protests in Oil/Gas Producing Countries

This work examines contrasting claims made by academic scholars on the relationship between income inequality and political discontent. Does income inequality directly cause social unrest or is this relationship conditional on the level of democratic development? Using the data from 55 oil/gas producing countries between 2010-2013, the author finds: 1) income disparity between an average income per capita of local population and an average income of foreign labor employed in the oil/gas industry results in higher number of violent protests in more democratic oil/gas producing societies; 2) wage disparity between local and foreign labor in the oil/gas industry is associated with higher number of protests in this industry in more democratic oil/gas producing states.