likely a more salient source of ethnic resentment. Relying on individual-level panel data from Indonesia and a historical … villagers but only when villages have administrative and fiscal autonomy. Moreover, decentralization and observed local ethnic … disparities that are not reflected in aggregate statistics and that decentralization is not a panacea for alleviating ethnic …

-level panel data from Indonesia we establish that ethnic favoritism is common among village governments allocating individual … decentralization and the introduction of local direct elections increase inequalities between ethnic groups in villages. We conclude … decentralization and direct elections can have unintended consequences for ethnic relative deprivation and the efficient allocation of …