Human genetic diversity and income inequality

This paper examines whether human genetic diversity is relevant to understand income inequality differences across countries. It extends the existing genetics-development studies in the literature to the relationship between genetics and inequality. The results obtained from 147 countries indicate that there is a statistically significant U-shaped relationship between genetic diversity and inequality. An important mediating factor in this relationship can be the level of trust in society. Genetic homogeneity can increase mutual support, aid, and cooperation in society. Hence, higher levels of genetic homogeneity can be associated with higher trust levels, which improves income equality. In addition, the relationship between genetics and the innovation capacity of societies can be another causal mechanism relating genetics to inequality.