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Reinvestigating the Reciprocal Relationship between Democracy and Income Inequality


 
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1. Title Title of document Reinvestigating the Reciprocal Relationship between Democracy and Income Inequality
 
2. Creator Author's name, affiliation, country Carl Henrik Knutsen; Department of Political Science, University of Oslo Secondary affil.: Centre for the Study of Civil War, PRIO Secondary affil.: ESOP, Department of Economics, University of Oslo; Norway
 
3. Subject Discipline(s) Political Science; Economics; Comparative Politics; Political Economy
 
3. Subject Keyword(s) Democracy; Income Inequality; Democratization; Democratic stability; Wage income; Redistribution
 
3. Subject Subject classification D02; D63; O10; P00
 
4. Description Abstract Few social science relationships have spawned as much interest -- or as many elaborate theoretical models and arguments -- as that between democracy and income inequality. However, the empirical literature has generally employed statistical models based on problematic assumptions, and has produced quite mixed results. Hence, this paper makes an important empirical contribution by applying models that, for instance, account for endogeneity biases and control for country-specific effects. Despite being correlated, there is very little evidence of any effect of income inequality on level of democracy once employing appropriate model specifications. Furthermore, there is no robust evidence that inequality systematically affects either democratization prospects or democratic stability. In contrast, there is evidence that democracy reduces income inequality when inequality is proxied by share of income going to wages. However, also this effect is sensitive to choice of inequality measure. Democracy does, for instance, not reduce inequalities in disposable household incomes.
 
5. Publisher Organizing agency, location University of Perugia
 
6. Contributor Sponsor(s)
 
7. Date (YYYY-MM-DD) 2015-12-10
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type
 
9. Format File format PDF
 
10. Identifier Uniform Resource Identifier http://www.rei.unipg.it/rei/article/view/173
 
10. Identifier Digital Object Identifier http://dx.doi.org/10.5202/rei.v6i2.173
 
11. Source Title; vol., no. (year) Review of Economics and Institutions; Vol 6, No 2 (2015)
 
12. Language English=en en
 
13. Relation Supp. Files Appendix (3MB)
 
14. Coverage Geo-spatial location, chronological period, research sample (gender, age, etc.)
 
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