GINI DP 16: Income Inequality and Voter Turnout

The paper looks at the link between inequality and voter turnout, and derives three hypothesis from previous literature. It is shown that inequality associates negatively with turnout at the national elections (hypothesis 1). Although this is not a very strong effect, but it is net of several factors affecting voter turnout that are empirically well proven – such as individual characteristics or different features of the political system. The literature suggests that this negative association is either due to the lower turnout of the poor relative to the rich in high inequality countries (hypothesis 2) or due to the effects of the universal welfare state, which increases turnout through altered social norms as well as decreases inequality through government intervention (hypothesis 3). Although none of the hypotheses were refuted, neither was really supported by the data. I also tested whether inequalities at the top or at the bottom have a different affect on turnout. Although the results, again, are not very robust, it seems that larger differences in income between the very rich and the middle decreases overall turnout, while higher difference between the middle and the very poor increases turnout. This is just the opposite of what is expected from the Downsian rational voter model. JEL codes: D72, D63