Antonella Biscione, Raul Caruso, Annunziata de Felice
This paper empirically investigates the impact of the level of militarization on income inequality. The empirical analysis is performed on a panel of 45 European countries over the period 2000-2017. Our empirical strategy relies on a panel data model. Additionally, we apply the Lewbel (2012) IV–GMM approach to address potentially endogeneity bias. The main findings show that militarization and inequality are positively correlated within sampled countries. The negative influence on inequality persists when using bounded and unbounded Gini indexes and also when different sub-sets of countries are analyzed. Finally, results are also robust to endogeneity.
