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Inequality, Democracy, and Persistence: Is There a Political Kuznets Curve?

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  • Alberto Chong

Abstract

The aim of this paper is to provide comprehensive empirical evidence on recent theories that link democracy and income inequality for the period 1960-1997. In simple cross-country regressions I find a non-monotonic link between democracy and inequality when using ordinary least squares, instrumental variables, and Eusufzai tests. I also employ dynamic panel data techniques, which control for potential simultaneity and heterogeneity problems. I also find support for the existence of apolitical Kuznets curve. Moreover, it appears that income inequality is unconditionally persistent. Results are robust to different democracy proxies when sensitivity analysis is applied. Copyright Blackwell Publishing Ltd 2004.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics & Politics.

Volume (Year): 16 (2004)
Issue (Month): 2 (07)
Pages: 189-212

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Handle: RePEc:bla:ecopol:v:16:y:2004:i:2:p:189-212

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Citations

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Cited by:
  1. Valerie Koechlin & Gianmarco Leon, 2007. "International Remittances and Income Inequality: An Empirical Investigation," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 10(2), pages 123-141.
  2. Carlyn Dobson & Antonio Rodríguez, 2010. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Development Research Working Paper Series 02/2010, Institute for Advanced Development Studies.
  3. Bjørnskov, Christian, 2010. "Do elites benefit from democracy and foreign aid in developing countries?," Journal of Development Economics, Elsevier, vol. 92(2), pages 115-124, July.
  4. Alberto Chong & Luisa Zanforlin, 2001. "Políticas de orientación interna, instituciones, autócratas y crecimiento económico en América Latina: un análisis empírico," Research Department Publications 4256, Inter-American Development Bank, Research Department.
  5. Nohra Rey de Marulanda & Julio Guzmán, 2003. "Inequidad, desarrollo humano y política social: Importancia de las "Condiciones Iniciales"," IDB Publications 10598, Inter-American Development Bank.
  6. Unal Tongur & Adem Yavuz Elveren, 2012. "Military Expenditures, Inequality, and Welfare and Political Regimes: A Dynamic Panel Data Analysis," ERC Working Papers 1210, ERC - Economic Research Center, Middle East Technical University, revised Dec 2012.
  7. Bergh, Andreas & Bjørnskov, Christian, 2013. "Trust, Welfare States and Income Equality: What Causes What?," Working Paper Series 994, Research Institute of Industrial Economics.
  8. Alberto Chong & Luisa Zanforlin, 2001. "Inward-Looking Policies, Institutions, Autocrats, and Economic Growth in Latin America: An Empirical Exploration," Research Department Publications 4255, Inter-American Development Bank, Research Department.
  9. Alberto Chong & Mauricio Olivera, 2005. "Votación obligatoria y desigualdad del ingreso en una muestra representativa de países," Research Department Publications 4414, Inter-American Development Bank, Research Department.
  10. Christian Bjørnskov & Jacob Mchangama, 2013. "Do Social Rights Affect Social Outcomes?," Economics Working Papers 2013-18, School of Economics and Management, University of Aarhus.
  11. Alberto Chong & Mauricio Olivera, 2005. "On Compulsory Voting and Income Inequality in a Cross-Section of Countries," Research Department Publications 4413, Inter-American Development Bank, Research Department.

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