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Inequality and Extremist Voting: Evidence from Germany

Author

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  • Dorn, Florian
  • Fuest, Clemens
  • Immel, Lea
  • Neumeier, Florian

Abstract

This paper studies the impact of economic inequality on political polarization. Using a unique dataset covering different measures of regional income inequality as well as federal and state election outcomes at the county level in Germany, we investigate whether inequality influences the share of votes for right-wing and left-wing extremist parties using instrumental variable estimation. Our results suggest that an increase in income inequality has a sizeable influence on the support for extremist parties. The poorer a county is compared to the national average, the higher is the share of votes both nationalist and leftist parties receive. Our findings thus indicate that the rise in economic inequality may be a threat to political stability.

Suggested Citation

  • Dorn, Florian & Fuest, Clemens & Immel, Lea & Neumeier, Florian, 2018. "Inequality and Extremist Voting: Evidence from Germany," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181598, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181598
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    Cited by:

    1. Gian Italo Bischi & Federico Favaretto & Edgar J. Sanchez Carrera, 2022. "Long-term causes of populism," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(1), pages 349-377, January.
    2. Endrich, Marek, 2020. "A Window to the World: The long-term effect of Television on Hate Crime," ILE Working Paper Series 33, University of Hamburg, Institute of Law and Economics.
    3. Federico Favaretto & Donato Masciandaro, 2022. "Populism, financial crises and banking policies: Economics and psychology," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(4), pages 441-464, September.
    4. Hernan Winkler, 2019. "The effect of income inequality on political polarization: Evidence from European regions, 2002–2014," Economics and Politics, Wiley Blackwell, vol. 31(2), pages 137-162, July.

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    More about this item

    Keywords

    Inequality; political polarization; extremist voting; Germany;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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