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Inequality, local wealth, and electoral politics

Author

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  • Song, B.K.
  • Kang, Woo Chang

Abstract

We investigate whether the effect of rising inequality on electoral outcomes is conditional on local wealth within a country. In general, rising inequality increases support for left-wing parties among both poor and relatively well-off voters, but it also discourages turnout among those who are economically disadvantaged. As a result, left-wing parties’ electoral advantages become more salient in affluent localities, while they diminish in less affluent ones with larger shares of poor voters. To test these claims, we develop a unique measure of local inequality using actual transaction prices for residential housing in South Korea. Our analysis of aggregate data across four national legislative elections between 2008 and 2020 suggests that the effect of rising economic inequality varies depending on local wealth, generating political inequality where the policy preferences of voters in more affluent localities are better represented in the policy-making process.

Suggested Citation

  • Song, B.K. & Kang, Woo Chang, 2025. "Inequality, local wealth, and electoral politics," European Journal of Political Economy, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:poleco:v:86:y:2025:i:c:s0176268024001198
    DOI: 10.1016/j.ejpoleco.2024.102617
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