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Inequality and Participative Democracy: A Self‐Reinforcing Mechanism

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  • Ioannis Theodossiou
  • Alexandros Zangelidis

Abstract

During the last three decades, a notable increase in economic inequality is observed, accompanied by a decline in people's engagement in politics and electoral participation. This is an unsatisfactory phenomenon as it undermines the legitimacy of democratic representation. This negative association is produced by a complex salient mechanism. This study aims at investigating this issue. Using data from a panel of 28 OECD and European countries, this paper identifies a two‐way causal relationship between inequality and political participation. The results show that greater income inequality alienates and discourages people from engaging with common affairs, thus leading to lower political participation. Yet, lower electoral participation leads towards a less equitable distribution of income. Hence, this study reveals a self‐reinforcing mechanism where the unequal distribution of income leads to political exclusion, which in turn leads to more inequality.

Suggested Citation

  • Ioannis Theodossiou & Alexandros Zangelidis, 2020. "Inequality and Participative Democracy: A Self‐Reinforcing Mechanism," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(1), pages 74-93, March.
    • Handle: RePEc:bla:revinw:v:66:y:2020:i:1:p:74-93
    DOI: 10.1111/roiw.12401
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    Cited by:

    1. Benjamin Monnery & François-Charles Wolff, 2023. "Is participatory democracy in line with social protest? Evidence from the French Yellow Vests movement," Public Choice, Springer, vol. 197(1), pages 283-309, October.

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