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Political Cleavages and Inequality Evidence from Electoral Democracies, 1950-2018 Amory Gethin 2 Clara Mart´ ınez-Toledano 1,2 Thomas Piketty 1,2 Inequalities and Preference for Redistribution Seminar ´ Ecole des Hautes ´ Etudes en Sciences Sociales March 19 th 2019 1 Paris School of Economics – EHESS 2 World Inequality Lab

Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

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Page 1: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Political Cleavages and Inequality

Evidence from Electoral Democracies, 1950-2018

Amory Gethin2 Clara Martınez-Toledano1,2 Thomas Piketty1,2

Inequalities and Preference for Redistribution Seminar

Ecole des Hautes Etudes en Sciences Sociales

March 19th 2019

1Paris School of Economics – EHESS

2World Inequality Lab

Page 2: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Introduction

• Income and wealth inequalities have been rising in most developed

economies since the 1980s (Alvaredo et al. 2018).

• Yet, the political responses to these evolutions have been very diverse.

European countries have been much more successful at containing

inequality than the US (Piketty, Saez & Zucman 2018; Blanchet,

Chancel & Gethin 2019).

• More recently, democratic countries seem to be moving away from

distributive conflicts and turning towards identity-based politics (Le

Pen, Trump, Bolsonaro, Modi...).

• ‘Why do the poor not expropriate the rich in democracies?’ (Roemer

1998)

1

Page 3: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Related literature

• Historical evolution of electoral behaviours in old democracies

(Lipset & Rokkan 1967; Evans et al. 2012, Evans & Rennwald 2014...)

• Rise of ‘populism’ in Western democracies (Moriconi et al. 2018,

Becker & Fetzer 2017, Autor et al. 2017, Colantone & Stanig 2018,

Rodrik 2018, Algan et al., 2018, Becker et al. 2017...)

• Demand and supply for redistribution (Pontusson & Rueda 2010,

Iversen & Soskize 2015, Bonica et al. 2013, Tavits & Potter 2015,

Roemer 1998, Roemer et al. 2007...)

• Connecting cleavage structures to distributive politics (Piketty

2018, Banerjee et al. 2019, Jenmana & Gethin 2019)

2

Page 4: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

This presentation

• A new database on the long-run evolution of electoral behaviours in

advanced economies.

• Focus on the division between ‘left-wing’ and ‘right-wing’ parties

which has historically structured party politics in a majority of old

democracies → follow-up of Piketty’s (2018) study on the emergence

of multiple elites party systems in France, the UK and the US.

• Do top income earners still support ‘right-wing’ parties, and how has

this changed over time? Do we observe a reversal of education-based

voting patterns in all Western democracies?

• Disclaimer: very preliminary results. Suggestions welcome!

• Future work:

• Political participation

• Extreme voting

• Links between supply and demand (party-level data)

3

Page 5: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

A new database on political cleavages in old democracies

• Our objective is to harmonise pre- and post-electoral surveys for as

many countries as possible, spanning from the 1950s until today.

• Surveys generally ask respondents about the party they supported in

the last general election, and provide information on standard socio-

demographic characteristics.

• Work in progress:

• Fifteen countries harmonised: Australia, Brazil, Canada, France, Ice-

land, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Spain,

Switzerland, United Kingdom, United States.

• About 150 surveys.

• About half a million respondents.

• Countries in the process of being harmonised: Austria, Belgium, Den-

mark, Finland, Germany, Ireland, South Africa, Sweden.

• All results will be publicly available for further research.

4

Page 6: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Data coverage

Table 1: Coverage of data sources

Country Coverage Source No. Avg. sample

Australia 1963-2016 Australian Election Studies and others 17 2390

Brazil 1989-2018 Datafolha Institute 8 10220

Canada 1965-2015 Canadian Election Studies 15 3370

Iceland 1983-2013 Icelandic National Election Studies 9 1500

Italy 1968-2013 Italian National Election Studies 11 2120

Japan 1963-2014 Japan Election Studies and others 12 1990

Netherlands 1967-2012 Dutch Parliamentary Election Studies 15 1940

New Zealand 1990-2014 New Zealand Election Studies 9 3400

Norway 1957-2013 Norwegian Election Studies 12 1930

Portugal 1983-2015 Portuguese Election Studies and others 8 2030

Spain 1979-2016 Encuestas electorales 11 5170

Switzerland 1971-2015 Swiss Electoral Studies 11 3360

5

Page 7: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

• Piketty (2018) finding: reversal of support for left parties by education

in France, UK and US. Does this hold for other Western countries?

6

Page 8: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Support for left-wing parties (socialist, social-democratic, communist,

green) among university graduates, 1950s-2010s: after controls

-50

-40

-30

-20

-10

0

10

20

30

Diff

eren

ce b

etw

een

(% o

f uni

v. g

radu

ates

)an

d (%

of n

on-u

niv.

) vot

ing

left,

afte

r con

trols

1950s 1960s 1970s 1980s 1990s 2000s 2010s

Australia Canada SwitzerlandIceland Italy NetherlandsNorway New Zealand Spain

7

Page 9: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Support for left-wing parties (socialist, social-democratic, communist,

green) among top earners in 9 countries, 1950s-2010s: after controls

-50

-40

-30

-20

-10

0

10

20

30

Diff

eren

ce b

etw

een

(% o

f top

10%

ear

ners

)an

d (%

of b

otto

m 9

0%) v

otin

g le

ft, a

fter c

ontro

ls

1950s 1960s 1970s 1980s 1990s 2000s 2010s

Australia Canada SwitzerlandIceland Italy NetherlandsNorway New Zealand Spain

8

Page 10: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

A Portuguese exception?

Vote for CDU / PCTP / PS / Bloco de Esquerda by education, 1987-2015

0%

10%

20%

30%

40%

50%

60%

70%

Shar

e vo

ting

left

1987 1991 2002 2005 2009 2015

Primary Secondary Tertiary

9

Page 11: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

A Portuguese exception?

Portugal

-30

-25

-20

-15

-10

-5

0

5

10

Diff

eren

ce (p

erce

ntag

e po

ints

)

1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Socialist / Communist / Bloco de Esqu. / Greens, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Socialist / Communist / Bloco de Esqu. / Greens, after controls

10

Page 12: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Early value cleavages in an old democracy: the case of Japan

• Regular democratic elections have been held in Japan since the end

of World War II. However, the divides which have structured party

politics in Japan are dramatically different from those observed in the

Western world.

• The Liberal Democratic Party has remained in power for most of

Japan’s post-war history thanks to support from voters living in poor

rural areas, business elites and less educated citizens.

• These specificities led to an early, stable ‘multiple elites party system’.

Recent developments (rise of the Democratic Party of Japan, new

right-wing parties) seem to have initiated the breakdown of these

historical affiliations.

11

Page 13: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Early value cleavages in an old democracy: the case of Japan

Japan’s early ‘multiple elites party system’, 1963-2014

-30-25-20-15-10

-505

10152025

Diff

eren

ce (p

erce

ntag

e po

ints

)

1960s 1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting against the Liberal Democratic Party / Komeito, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting against the Liberal Democratic Party / Komeito, after controls

12

Page 14: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Early value cleavages in an old democracy: the case of Japan

Vote for the Liberal Democratic Party / Komeito by income group, 1960s-2010s

0%

10%

20%

30%

40%

50%

60%

70%

Shar

e vo

ting

LDP/

Kom

eito

1960s 1970s 1990s 2000s 2010s

Q1 Q2 Q3 Q4 Q5

13

Page 15: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Early value cleavages in an old democracy: the case of Japan

Vote for the Liberal Democratic Party / Komeito by age group, 1960s-2010s

0%

10%

20%

30%

40%

50%

60%

70%

80%

Shar

e vo

ting

LDP/

Kom

eito

1960s 1970s 1990s 2000s 2010s

20-40 40-60 60+

14

Page 16: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Early value cleavages in an old democracy: the case of Japan

Vote for the Liberal Democratic Party / Komeito in rural areas, 1960s-2010s

0%

10%

20%

30%

40%

50%

60%

70%

Shar

e vo

ting

LDP/

Kom

eito

1960s 1970s 1990s 2000s 2010s

Towns/villages Cities Big cities

15

Page 17: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Politicizing inequality in a new democracy: the case of Brazil

• In the 1990s, Lula da Silva’s Workers’ Party (PT) was supported by a

young, urban intellectual elite. The PT’s success in fighting absolute

poverty since 2002 went hand in hand with rising support among

poorer and lower educated Brazilians.

• The 2018 Bolsonaro vote gathered those who were disappointed with

the political system’s corruption, as well as those who were appeased

by his liberal economic program.

• These are essentially top income earners and higher educated voters.

Contrary to what we observe in Europe or the US, right-wing pop-

ulism in Brazil has grown from elite dissatisfaction, not from the lower

educated or from the victims of globalisation.

• More in Gethin, A. and Morgan, M. (2018), ‘Brazil Divided: Hind-

sights on the Growing Politicisation of Inequality’, WID.world Issue

Brief 2018/3.

16

Page 18: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Politicizing inequality in a new democracy: the case of Brazil

Brazil

-20

-15

-10

-5

0

5

10

15

20

Diff

eren

ce (p

erce

ntag

e po

ints

)

1989 1994 1998 2002 2006 2010 2014 2018

(% of top 10%) - (% of bottom 90%) earners voting left(% of univ.) - (% of non-univ.) graduates voting left

17

Page 19: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Conclusion

• In most Western democracies (except Portugal), higher educated vot-

ers have become increasingly likely to support socialist and social-

democratic parties.

• This has given rise to ‘multiple elites party systems’, where economic

redistribution and new social issues are progressively becoming cross-

cutting dimensions of political conflict.

• Possible explanations

• Globalisation and historical changes have played a role in shaping the

preferences of the higher educated towards new social issues (gender

equality, LGBT rights, environmental concerns, immigration...).

• Left-wing parties have shifted their programmatic emphases towards

new policies supported by the higher educated.

18

Page 20: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Conclusion

• Evidence from other old and new democracies (Portugal, Japan, Brazil)

does suggest that these transitions are primarily linked to the way

political parties emphasise these issues and are opposed on these dif-

ferent dimensions.

• Cleavage structures can have direct consequences on governments’

responsiveness to rising inequalities.

• The mechanisms through which preferences for redistribution are me-

diated by party systems need to be further studied.

19

Page 21: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Support for left-wing parties among top 10% education voters, after controls

-50

-40

-30

-20

-10

0

10

20

30

Diff

eren

ce b

etw

een

(% o

f top

10%

edu

catio

n)an

d (%

of b

otto

m 9

0%) v

otin

g le

ft, a

fter c

ontro

ls

1950s 1960s 1970s 1980s 1990s 2000s 2010s

Australia Canada SwitzerlandIceland Italy NetherlandsNorway New Zealand Spain

20

Page 22: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Norway

-50

-40

-30

-20

-10

0

10

20

Diff

eren

ce (p

erce

ntag

e po

ints

)

1950s 1960s 1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Labour / Socialist Left / Communist / Greens, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Labour / Socialist Left / Communist / Greens, after controls

21

Page 23: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Iceland

-30

-25

-20

-15

-10

-5

0

5

10

15

20

Diff

eren

ce (p

erce

ntag

e po

ints

)

1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Social Dem. / People's Alliance / Left Green, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Social Dem. / People's Alliance / Left Green, after controls

22

Page 24: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Netherlands

-30-25-20-15-10

-505

10152025

Diff

eren

ce (p

erce

ntag

e po

ints

)

1960s 1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Labour / Socialist / Greens / Democrats 66, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Labour / Socialist / Greens / Democrats 66, after controls

23

Page 25: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Switzerland

-20

-10

0

10

20

30

Diff

eren

ce (p

erce

ntag

e po

ints

)

1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Social Democratic / Greens / other left, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Social Democratic / Greens / other left, after controls

24

Page 26: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Italy

-20-15-10

-505

10152025

Diff

eren

ce (p

erce

ntag

e po

ints

)

1960s 1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting PD / PDS / PCI / M5S / other left, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting PD / PDS / PCI / M5S / other left, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting PD / PDS / PCI / other left, after controls

25

Page 27: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Spain

-30

-25

-20

-15

-10

-5

0

5

10

15

20

Diff

eren

ce (p

erce

ntag

e po

ints

)

1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting PSOE / Izquierda Unida / Podemos, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting PSOE / Izquierda Unida / Podemos, after controls

26

Page 28: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Canada

-30

-25

-20

-15

-10

-5

0

5

10

15

20

Diff

eren

ce (p

erce

ntag

e po

ints

)

1960s 1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting New Democratic Party, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting New Democratic Party, after controls

27

Page 29: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

Australia

-30

-25

-20

-15

-10

-5

0

5

10

15

20

Diff

eren

ce (p

erce

ntag

e po

ints

)

1960s 1970s 1980s 1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Labor / Greens, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Labor / Greens, after controls

28

Page 30: Political Cleavages and Inequalitypiketty.pse.ens.fr/files/GethinMartinezPiketty2019Slides.pdf · 2019-05-21 · Political Cleavages and Inequality Evidence from Electoral Democracies,

Economic and value cleavages in Western democracies

New Zealand

-30-25-20-15-10

-505

10152025

Diff

eren

ce (p

erce

ntag

e po

ints

)

1990s 2000s 2010s

Difference between (% of top 10%) and (% of bottom 90%) earnersvoting Labour / Alliance / Greens, after controlsDifference between (% of univ. graduates) and (% of non-univ.)voting Labour / Alliance / Greens, after controls

29