(When) Do Parties Affect Economic Inequality? A Systematic Analysis of 30 Years of Research

Abstract

Despite 30 years of research on economic inequality, the question of whether government ideology affects inequality remains unresolved. As rising inequality poses a major challenge to contemporary democracies, we ask: (when) do parties matter regarding inequality? Our systematic analysis finds that research is divided, with a tendency toward a pessimistic “no.” We decipher the factors that account for this split in theoretically predictable ways. We assess the roles played by the type of inequality, the time horizon, and the impact of policy channels. Bivariate and multivariate analyses of 393 TSCS-regression findings show how the type of inequality and a neglect of top incomes, a focus on short- rather than long-term effects, and the inclusion of policy channels that absorb the effects of parties strongly codetermine the results. Effects septuple depending on how these factors are combined. We draw three lessons that, when combined, foster a shift toward a more optimistic perspective on the latitude of politics.