Exploring the Subnational Dimension of Income Inequality: An Analysis of the Relationship Between Inequality and Electoral Turnout in the Developed Countries

Abstract

This paper offers an exploratory analysis of the subnational dimension of income inequality, using data from the Luxembourg Income Study. The paper undertakes two basic tasks. First, it describes the results of calculations on household‐level income data that produce indicators of intra‐ and inter‐household inequality for 191 regions in 12 developed countries for the late 1980s and early 1990s, and for 149 regions in 8 countries for the mid‐1990s. Second, the paper demonstrates the value of regional analysis by reexamining the relationship between electoral turnout and income inequality, an important substantive issue which has heretofore been explored almost entirely at the national or individual level but upon which regional‐level analysis can shed valuable light.

Redistribution in a model of voting and campaign contributions

“…51 Here the effect of inequality (and racial heterogeneity) is clearly negative, which is consistent with the evidence from the literature that has explored the correlation between heterogeneity and turnout (e.g. Mahler 2002). More generally, this evidence reinforces one of the model's cornerstones, namely that contributing to campaigns is a distinct form of political participation, which responds to the social environment in a manner that is distinct from that of other forms of participation.…”

“…31 In addition, this assumption rules out the discontinuities that emerge from a "winner-takes-all" setup, thus keeping the model analytically simple without otherwise affecting the results. 32 This formulation is also consistent with the idea that it is optimal for individual i to vote for Party j if and only if…”

“…32 More precisely, as discussed in Alesina and Rosenthal (1995, p. 27), a "winner-takes-all" assumption would generate policy convergence, since we are in a setup without uncertainty about voters' preferences. This would be unappealing in a context where I want to be able to differentiate between parties.…”

Income Inequality Within European Regions: Determinants and Effects on Growth

“…We first reviewed the broad existing literature on these fields, and then considered the specific features, in particular those related to factor mobility, emerging when analysis is carried out at sub‐national levels. Our empirical analysis was carried out using two datasets of regional inequality for several European countries (Mahler, 2002; Hoffmeister, 2006a), derived from available data of the Luxembourg Income Study. Our descriptive analysis shows remarkable diversification of regional income inequality not only across Europe, but also within single countries.…”

Voting Counts: Participation in the Measurement of Democracy

“…Other factors that increase votingand indicate the breadth of the democracy-include citizen attitudes that reflect political culture and individual experience with the political system, such as partisanship, feelings of efficacy, trust in institutions, and interest in public affairs. The competitiveness of elections and the likelihood of change due to elections also spur turnout (Mahler, 2002;Franklin, 1996). 14.…”