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Long-run effects of democracy on income inequality : evidence from repeated cross-sections

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  • Balcazar Salazar,Carlos Felipe

Abstract

This paper assesses the link between democracy and inequality. Inequality is measured at the cohort level with pseudo-panel data built from nine Latin American countries'household surveys (1995-2009, biannual). Democracy is measured as a stock during long periods of time both before and after each cohort's year of birth. The paper presents evidence that long-run historical patterns in the degree of democracy relate to income inequality. However, this relationship is non-monotonic: inequality ?rst increases with the stock of democracy before falling. The paper also presents evidence that education may be a mechanism explaining this result.

Suggested Citation

  • Balcazar Salazar,Carlos Felipe, 2015. "Long-run effects of democracy on income inequality : evidence from repeated cross-sections," Policy Research Working Paper Series 7153, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7153
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    Keywords

    Parliamentary Government; Population Policies; Labor Policies; Inequality; Political Economy;
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