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Democratization and the Conditional Dynamics of Income Distribution

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  • Michael T. Dorsch
  • Paul Maarek

    (Université de Cergy-Pontoise, THEMA)

Abstract

Most theoretical accounts imply that democratization will reduce income inequality as representative governments become accountable to citizens who would bene t from increased redistribution from the elite. Yet, available empirical evidence does not support the notion that democratization, on average, leads to more equal income distributions. This paper starts from the simple observation that autocracies are quite heterogeneous and govern extreme distributional outcomes (also egalitarian). From extreme initial conditions, democratization may lead income distributions to a "middle ground". We thus examine the extent to which initial inequality levels determine the path of distributional dynamics following democratization. Using xed e ects and instrumental variable estimates we demonstrate that egalitarian autocracies become more unequal following democratization, whereas democratization has an equalizing e ect in highly unequal autocracies.

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  • Michael T. Dorsch & Paul Maarek, 2016. "Democratization and the Conditional Dynamics of Income Distribution," THEMA Working Papers 2016-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  • Handle: RePEc:ema:worpap:2016-06
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    8. Anderson, Edward, 2022. "The correlates of declining income inequality among emerging and developing economies during the 2000s," World Development, Elsevier, vol. 152(C).
    9. Krieger, Tommy, 2022. "Democracy and the quality of economic institutions: Theory and evidence," ZEW Discussion Papers 22-032, ZEW - Leibniz Centre for European Economic Research.
    10. Rédha Chaba & Michael T Dorsch & Victor Hiller & Paul Maarek, 2023. "Demographic and Political Transitions," Working Papers hal-04039762, HAL.
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    19. Krieger, Tommy, 2019. "Democracy and institutional quality: Theory and Evidence," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203507, Verein für Socialpolitik / German Economic Association.
    20. Wong, Mathew Y.H., 2021. "Democracy, hybrid regimes, and inequality: The divergent effects of contestation and inclusiveness," World Development, Elsevier, vol. 146(C).
    21. Krieger, Tommy, 2022. "Measuring democracy," ZEW Discussion Papers 22-063, ZEW - Leibniz Centre for European Economic Research.

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