Abstract
We examine how within-group inequality, by influencing the group bias of state institutions, affects the cost-benefit calculus of individuals engaging in identity-assertive behaviour, that results in police complaints regarding hate crimes. We develop a two-stage contest model of between-group conflict, where the relative influence of a group over institutions, determined by an initial contest, affects subsequent hierarchy-establishing interaction between individuals belonging to opposing groups. Applying this model to caste conflict in India, we find that greater inequality among non-Scheduled Caste and non-Scheduled Tribe (non-SC/ST) Hindus reduces the registered rate of crimes against SCs by non-SC/ST Hindus, and the rate at which such registered crimes lead to conviction. Using state-level annual crime and household consumption data over 2005-2021, we find empirical support for these hypotheses. Our analysis suggests that greater equality within dominant groups might reduce institution-capture by them and thereby improve both reporting and punishment of aggression against marginalized groups.