Political Reinforcement: How Rising Inequality Curbs Manifested Welfare Generosity

Erling Barth, Kalle Moene, and Henning Finseraas

AJPS

Photo: AJPS

Published in:

American Journal of Political Science 2015 59 (3) pp. 565-577

DOI: 10.1111/ajps.12129

Abstract:

We propose a political reinforcement hypothesis, suggesting that rising inequality moves party politics on welfare state issues to the right, strengthening rather than modifying the impact of inequality. We model policy platforms by incorporating ideology and opportunism of party members and interests and sympathies of voters. If welfare spending is a normal good within income classes, a majority of voters moves rightward when inequality increases. As a response, the left, in particular, shift their welfare policy platform toward less generosity. We find support for our arguments using data on the welfare policy platforms of political parties in 22 OECD countries.

Fulltext (PDF)

Published Apr. 24, 2015 4:28 PM - Last modified Dec. 10, 2015 11:18 AM