Democracy and income inequality: revisiting the long and short-term relationship

Nikoloski, Zlatko (2015) Democracy and income inequality: revisiting the long and short-term relationship. Review of Economics and Institutions, 6 (2). pp. 1-24. ISSN 2038-1344

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Abstract

This paper studies the relationship between democracy andincome inequality in long- and short/medium-run. Using appropriate econometrictechniques on both, averaged and panel data for the period 1962-2006, we findno evidence that democracy is associated with tighter income distribution. Ourresults are robust to different specification techniques, to exclusion ofdeveloped as well as the transition countries. We speculate that the different(and opposing) transmission mechanisms, as well as the nature and thedefinition of the democracy variables (both Polity IV and Freedom House)influence our results. Improvement of conceptualization and measurement of democracycould shed further light onto the democracy-inequality nexus.

Item Type:	Article
Official URL:	http://www.rei.unipg.it/rei/index
Additional Information:	© 2015 University of Perugia Electronic Press
Divisions:	LSE Health
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HV Social pathology. Social and public welfare. Criminology
JEL classification:	F - International Economics > F5 - International Relations and International Political Economy > F54 - Colonialism; Imperialism; Postcolonialism O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence
Date Deposited:	19 Dec 2014 12:38
Last Modified:	14 Sep 2024 06:44
URI:	http://eprints.lse.ac.uk/id/eprint/60562

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