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Political Inequality

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  • Julia Cagé

    (Centre for Economic Policy Research, London, United Kingdom)

Abstract

Inequality in political participation and influence has strongly increased in recent decades, breeding economic inequality. In this review, we focus on three aspects of political inequality: the increasing concentration of both political and charitable donations, the growing gap in descriptive representation, and the persistent lack of substantive representation. Based on the existing literature as well as on novel evidence, we relate these aspects to the recent widening of turnout inequality. We then examine novel forms of participation—e.g., the rise of small donors in the United States—and the efficiency of policies aimed at improving representation. Finally, we discuss new avenues for research.

Suggested Citation

  • Julia Cagé, 2024. "Political Inequality," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 455-490, August.
    • Handle: RePEc:anr:reveco:v:16:y:2024:p:455-490
    DOI: 10.1146/annurev-economics-080223-040921
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    More about this item

    Keywords

    economic inequality; turnout; campaign finance; descriptive representation; political donations; political inequality; substantive representation; representative democracies; charitable giving;
    All these keywords.

    JEL classification:

    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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