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Political Democracy and the Size Distribution of Income

by: Kenneth A. Bollen, and Robert W. Jackman

In: American Sociological Review, Vol. 50, Nr. 4 (August 1985) , p. 438--457.

Abstract

This paper reviews the major theoretical arguments that link political democracy with economic inequality. It then shows that previous empirical analyses of the linkage have produced inconclusive results because they have suffered from specification, measurement, and sample-composition problems. A nonrecursive model is proposed that overcomes many of these limitations. Using 2SLS and a new weighted 2SLS procedure, we find no evidence of direct effects of political democracy on income inequality, or vice versa. However, economic development influences both variables, while world-system position, Protestantism, and British colonial experience affects political democracy. Population age-structure and systematic measurement error induce changes in income inequality. The paper concludes with a discussion both of the flaws in prior arguments linking democracy with inequality, and of the political processes that undermine any such linkage.

BibTeX record

@article{BollenJackman:1985,
  abstract = {This paper reviews the major theoretical arguments that link political democracy with economic inequality. It then shows that previous empirical analyses of the linkage have produced inconclusive results because they have suffered from specification, measurement, and sample-composition problems. A nonrecursive model is proposed that overcomes many of these limitations. Using 2SLS and a new weighted 2SLS procedure, we find no evidence of direct effects of political democracy on income inequality, or vice versa. However, economic development influences both variables, while world-system position, Protestantism, and British colonial experience affects political democracy. Population age-structure and systematic measurement error induce changes in income inequality. The paper concludes with a discussion both of the flaws in prior arguments linking democracy with inequality, and of the political processes that undermine any such linkage.},
  added-at = {2010-03-02T17:25:53.000+0100},
  author = {Bollen, Kenneth A. and Jackman, Robert W.},
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  bdsk-url-1 = {http://www.jstor.org/stable/info/2095432},
  biburl = {http://www.bibsonomy.org/bibtex/2568226552d170ba49e67fed632c3d44e/jrennstich},
  date-modified = {2010-02-28 21:03:30 -0500},
  interhash = {9691b7042b3c3707c1d22c7c0d693351},
  intrahash = {568226552d170ba49e67fed632c3d44e},
  journal = {American Sociological Review},
  keywords = {democracy development inequality},
  month = {August},
  number = 4,
  pages = {438--457},
  timestamp = {2010-03-02T17:25:53.000+0100},
  title = {Political Democracy and the Size Distribution of Income},
  volume = 50,
  year = 1985
}

Endnote record

%0 Journal Article
%1 BollenJackman:1985
%A Bollen, Kenneth A.
%A Jackman, Robert W.
%D 1985
%J American Sociological Review
%K 
%N 4
%P 438--457
%T Political Democracy and the Size Distribution of Income
%V 50
%X This paper reviews the major theoretical arguments that link political democracy with economic inequality. It then shows that previous empirical analyses of the linkage have produced inconclusive results because they have suffered from specification, measurement, and sample-composition problems. A nonrecursive model is proposed that overcomes many of these limitations. Using 2SLS and a new weighted 2SLS procedure, we find no evidence of direct effects of political democracy on income inequality, or vice versa. However, economic development influences both variables, while world-system position, Protestantism, and British colonial experience affects political democracy. Population age-structure and systematic measurement error induce changes in income inequality. The paper concludes with a discussion both of the flaws in prior arguments linking democracy with inequality, and of the political processes that undermine any such linkage.