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Political Inequality and State Policy Adoption: Predatory Lending, Children's Health Care, and Minimum Wage

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  • William W. Franko

Abstract

This article argues that considering the economic status of various politically active groups in society is an important and often overlooked aspect of representation. Economic status is linked closely with economic need, which is especially important for the disadvantaged. Income affects the types of government programs people are influenced by and rely on; for example, government health care and public housing policies are more likely to directly influence the poor while those with higher economic status may never have an experience with these programs. This suggests that different levels of political activity by various groups in society can have an influence on lawmakers' decisions regarding how to address certain issues. Using a relative index of economic inequalities in participation for each of the 50 states over time, I examine whether housing, health care, and wage equity policies are more beneficial to the disadvantaged when levels of participation inequality are low. Time‐series cross‐sectional (TSCS) analyses are used to understand the relationship between state participation bias and the favorability of policy outcomes for the poor. The results of this study have important implications for how political power can be used to control the policy process.

Suggested Citation

  • William W. Franko, 2013. "Political Inequality and State Policy Adoption: Predatory Lending, Children's Health Care, and Minimum Wage," Poverty & Public Policy, John Wiley & Sons, vol. 5(1), pages 88-114, March.
    • Handle: RePEc:wly:povpop:v:5:y:2013:i:1:p:88-114
    DOI: 10.1002/pop4.17
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    1. Craig Volden, 2006. "States as Policy Laboratories: Emulating Success in the Children's Health Insurance Program," American Journal of Political Science, John Wiley & Sons, vol. 50(2), pages 294-312, April.
    2. Colleen M. Grogan & Elizabeth Rigby, 2009. "Federalism, Partisan Politics, and Shifting Support for State Flexibility: The Case of the U.S. State Children's Health Insurance Program," Publius: The Journal of Federalism, CSF Associates Inc., vol. 39(1), pages 47-69, Winter.
    3. David S. Lee, 1999. "Wage Inequality in the United States During the 1980s: Rising Dispersion or Falling Minimum Wage?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 977-1023.
    4. Berry, Frances Stokes & Berry, William D., 1990. "State Lottery Adoptions as Policy Innovations: An Event History Analysis," American Political Science Review, Cambridge University Press, vol. 84(2), pages 395-415, June.
    5. Emily Blank & Padma Venkatachalam & Lawrence McNeil & Rodney Green, 2005. "Racial discrimination in mortgage lending in Washington, D.C.: A mixed methods approach," The Review of Black Political Economy, Springer;National Economic Association, vol. 33(2), pages 9-30, December.
    6. Thomas Boehm & Paul Thistle & Alan Schlottmann, 2006. "Rates and race: An analysis of racial disparities in mortgage rates," Housing Policy Debate, Taylor & Francis Journals, vol. 17(1), pages 109-149.
    7. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
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    Cited by:

    1. Christopher B Goodman & Megan E Hatch, 2023. "State preemption and affordable housing policy," Urban Studies, Urban Studies Journal Limited, vol. 60(6), pages 1048-1065, May.

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