Minority size and socio-economic inequalities: A case study of Muslim minority in India

The authors investigate the relationship between Muslim minority size and inequality using a new cross-sectional dataset of 599 Indian districts. The authors review existing studies, propose a new population growth inequality theory, and develop three hypotheses. A newly constructed multidimensional index of social well-being is used as a proxy for intergroup inequality. A multi-level mixed effects regression analysis with controls for urbanization and state-level effects is applied. The authors find a U-shaped relationship between the size of the Muslim minority and its absolute and relative well-being. Well-being reaches the lowest point when minority reaches approximately 50% of the population in a district. The average gap in well-being tends to be larger in the districts with lower socio-economic development.