Suchergebnisse

Do coalition governments really suffer from short time horizons in fiscal policymaking, as posited by standard political-economy models? This article focusses on coalitions that have created high levels of familiarity through shared governing experiences in the past and that are likely to cooperate again in future governing coalitions. I argue that such coalitions have incentives to internalise the future costs of debt accumulation and reach credible agreements to balance their constituencies' fiscal preferences. Moreover, sustaining broad coalitions should have electoral advantages to implementing controversial economic reforms, thus resulting in lower debt increases compared not only with less durable coalitions but also with single-party governments. Comparing 36 economically advanced democracies between (up to) 1962 and 2013, I estimate the effects of coalitions' cooperation prospects on the dynamics of public debt. The findings indicate that long time horizons can help coalitions to overcome intertemporal coordination problems and to reach specific policy goals.

Income inequality and radical right parties have both been on the rise in Western democracies, yet few studies explore the linkages between the two – despite prominent arguments about voters feeling 'left behind'. We argue that rising inequality not only intensifies relative deprivation, but also signals a potential threat of social decline, as gaps in the social hierarchy widen. Hence, voters higher up in the social hierarchy may turn to the radical right to defend existing social boundaries. Using International Social Survey Programme (ISSP) data from 14 OECD countries over three decades, we find that rising income inequality increases the likelihood of radical right support – most pronouncedly among individuals with high subjective social status and lower-middle incomes. Adding to evidence that the threat of decline, rather than actual deprivation, pushes voters towards the radical right, we highlight income inequality as the crucial factor conditioning perceived threats from a widening social hierarchy.

In striking contrast to the notion that democracy is under threat because 'the middle' has been 'squeezed' over recent decades, Iversen and Soskice (2019) in their book, Democracy and Prosperity, present an optimistic account about the future of democracy. This paper examines their key assumption that the symbiosis between democracy and advanced capitalism is underpinned by electorally decisive middle-class voters that secure a constant share of economic growth. Using comprehensive data on income trends, it is shown that this claim does not stand up to scrutiny: median income has often lagged behind the mean in household surveys, rather than kept pace with it as Iversen and Soskice claim. Strong real income growth has generally not compensated the middle for lagging behind. The varying fortunes of the middle in securing its share of economic growth have implications for the broader debate about inequality and democracy.

Support for the radical right has risen in most Western democracies. Globalization and modernization processes are usually seen as the source of this development, reshaping political conflicts and producing new groups of people that feel 'left behind'. However, few studies test how the relatively common trends in globalization shape the variation in the timing and extent of radical right support across countries. Focusing on the economic dimension of the 'losers of globalization' theory, we argue that income inequality is a suitable indicator to measure the extent to which some groups have fallen behind and to capture the fear of decline in material well-being of people not (yet) at the bottom of the income distribution. The relative deterioration in material conditions, we argue further, translates into a lower subjective social status of vulnerable groups who then turn towards the radical right. By cultivating nativism and thus providing non-economic criteria of social status, the radical right becomes more attractive as societies become more unequal. We show evidence for our hypothesis by comparing vote shares for radical right parties in 20 Western democracies between 1980 and 2016. The findings indicate that rising income inequality substantially increases support for the radical right in the long run. In addition, rising inequality translates into lower subjective social status of nontertiary educated men and this process of status decline further contributes to radical right support. Hence, there are both material and non-material linkages between income inequality and radical right support.

This contribution explores common trends in inequality and redistribution across Organization for Economic Co-operation and Development (OECD) countries from the late 1980s to 2013. Low-end inequality rises during economic downturns while rising top-end inequality is associated with economic growth. Most countries retreated from redistribution from the mid-1990s until the onset of the Great Recession, and compensatory redistribution in response to rising unemployment was weaker in 2008–2013 than in the first half of the 1990s. As unemployment and poverty risk have become increasingly concentrated among workers with low education, middle-income opinion has become more permissive of cuts in unemployment insurance generosity and income assistance to the poor. At constant generosity, the expansion of more precarious forms of employment reduces compensatory redistribution during downturns because temporary employees do not have the same access to unemployment benefits as permanent employees.

While there is renewed interest in earnings differentials between social classes, the contribution of social class to overall earnings inequality across countries and net of compositional effects remains largely uncharted territory. This paper uses data from the European Union Statistics on Income and Living Conditions to assess earnings differentials between social classes (as measured by ESeC) and the role of between-class inequality in overall earnings inequality across 30 European countries. We find that there is substantial variation in earnings differences between social classes across countries. Countries with higher levels of between-class inequality tend to display higher levels of overall earnings inequality, but this relationship is far from perfect. Even with highly aggregated class measures, between-class inequality accounts for a non-negligible share of total earnings inequality (between 15 and 25% in most countries). Controlling for observed between-class differences in composition shows that these account for much of the observed between-class earnings inequality, while in most countries between-class differences in returns to observed compositional variables do not play a major role. In all these respects we find considerable variation across countries, implying that both the size of between-class differences in earnings and the primary mechanisms that produce these class differences vary substantially between European countries.