Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-22T16:10:55.545Z Has data issue: false hasContentIssue false

Median voter and power resources revisited: a composite model of inequality

Published online by Cambridge University Press:  23 June 2016

Mathew Y. H. Wong*
Affiliation:
Department of Politics and Public Administration, University of Hong Kong, Hong Kong SAR, China
*

Abstract

This study explains redistribution and income inequality by revisiting traditional approaches. The predictions of the two dominant theories, the median voter hypothesis (the Meltzer–Richard model) and the power resources theory are regarded as contrasting, and have seldom been incorporated under a single framework. I develop a composite model of inequality by combining their core arguments within the framework of party competition. This study also analyses stages of inequality formation, namely market wage inequality and redistribution, and adds in a dynamic component to the model, completing the cycle of income distribution. The model is supported empirically with data from 18 Organisation for Economic Cooperation and Development countries from 1970 to 2009. I demonstrate the joint relevance and significance of the two theories, showing that they are not necessarily mutually exclusive and should be properly addressed from both theoretical perspectives.

Type
Research Article
Copyright
© European Consortium for Political Research 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, J., Haupt, A. and Stoll, H. (2009), ‘What moves parties? The role of public opinion and global economic conditions in Western Europe’, Comparative Political Studies 42(5): 611639.Google Scholar
Adams, J., Merrill, S. and Grofman, B. (2005), A Unified Theory of Party Competition, New York: Cambridge University Press.Google Scholar
Andersen, R., Tilley, J. and Heath, A. (2005), ‘Political knowledge and enlightened preferences: party choice through the electoral cycle’, British Journal of Political Science 35(2): 285302.Google Scholar
Barnes, L. (2013), ‘Does median voter income matter? The effects of inequality and turnout on government spending’, Political Studies 61: 82100.Google Scholar
Beramendi, P. and Cusack, T. (2009), ‘Diverse disparities: the politics and economics of wage, market and disposable income inequalities’, Political Research Quarterly 62(2): 257275.Google Scholar
Borck, R. (2007), ‘Voting, inequality and redistribution’, Journal of Economic Surveys 21(1): 90109.Google Scholar
Bradley, D., Huber, E., Moller, S., Nielsen, F. and Stephens, J.D. (2003), ‘Distribution and redistribution in postindustrial democracies’, World Politics 55(2): 193228.Google Scholar
Brady, D. (2009), Rich Democracies, Poor People: How Politics Explain Poverty, New York: Oxford University Press.Google Scholar
Brambor, T., Clark, W. and Golder, M. (2006), ‘Understanding interaction models: improving empirical analyses’, Political Analysis 14(1): 6382.Google Scholar
Cameron, D. (1978), ‘The expansion of the public economy: a comparative analysis’, American Political Science Review 72(4): 12431261.Google Scholar
Clayton, R. and Pontusson, J. (1998), ‘Welfare-state retrenchment revisited: entitlement cuts, public sector restructuring, and inegalitarian trends in advanced capitalist society’, World Politics 51: 6798.Google Scholar
Dahl, R. (1971), Polyarchy: Participation and Opposition, New Haven, CT: Yale University Press.Google Scholar
Dalton, R. (1985), ‘Political parties and political representation’, Comparative Political Studies 17: 267299.Google Scholar
Enelow, J. and Hinich, M. (1984), The Spatial Theory of Voting, Cambridge: Cambridge University Press.Google Scholar
Esping-Andersen, G. (1990), The Three Worlds of Welfare Capitalism, Princeton, NJ: Princeton University Press.Google Scholar
Ezrow, L, De Vries, C., Steenbergen, M. and Edwards, E. (2010), ‘Mean voter representation and partisan constituency representation: do parties respond to the mean voter position or to their supporters?’, Party Politics 17(3): 275301.Google Scholar
Gallagher, M. (2010), Election indices, Department of Political Science, Trinity College Dublin. Retrieved 14 September 2011 from http://www.tcd.ie/Political_Science/staff/michael_gallagher/ElSystems.Google Scholar
Garrett, G. (1998), Partisan Politics in the Global Economy, Cambridge: Cambridge University Press.Google Scholar
Gouveia, M. and Masia, N. (1998), ‘Does the median voter model explain the size of government? Evidence from the states’, Public Choice 97(1/2): 159177.Google Scholar
Ha, E. (2012), ‘Globalization, government ideology, and income inequality in developing countries’, Journal of Politics 74(2): 541557.Google Scholar
Hicks, A. (1999), Social Democracy and Welfare Capitalism, New York: Cornell University Press.Google Scholar
Huber, E. and Stephens, J.D. (2001), Development and Crisis of the Welfare State, Chicago, IL: University of Chicago Press.Google Scholar
Huber, E. and Stephens, J.D. (2012), Democracy and the Left: Social Policy and Inequality in Latin America, Chicago, IL: University of Chicago Press.Google Scholar
Imai, K., Keele, L., Tingley, D. and Yamamoto, T. (2011), ‘Unpacking the black box of causality: learning about causal mechanisms from experimental and observational studies’, American Political Science Review 105(4): 765789.Google Scholar
International Institute for Democracy and Electoral Assistance (2011), Voter turnout database. Retrieved 16 September 2011 from www.idea.int.Google Scholar
Iversen, T. and Soskice, D. (2006), ‘Electoral institutions and the politics of coalitions: why some democracies redistribute more than others’, American Political Science Review 100(2): 165181.Google Scholar
Kelly, N. and Enns, P. (2010), ‘Inequality and the dynamics of public opinion: the self-reinforcing link between economic inequality and mass preferences’, American Journal of Political Science 54(4): 855870.Google Scholar
Kenworthy, L. (2001), ‘Wage-setting institutions: a survey and assessment’, World Politics 54: 5798.Google Scholar
Kenworthy, L. and Pontusson, J. (2005), ‘Rising inequality and the politics of redistribution in affluent countries’, Perspectives on Politics 3(3): 449471.Google Scholar
Kim, H. and Fording, R. (1998), ‘Voter ideology in Western democracies, 1946-89’, European Journal of Political Research 33: 7397.Google Scholar
Kim, H. and Fording, R. (2003), ‘Voter ideology in Western democracies: an update’, European Journal of Political Research 42: 95105.Google Scholar
Kitschelt, H. (1997), ‘European party systems: continuity and change’, in M. Rhodes, P. Heywood and V. Wright (eds), Developments in West European Politics, New York: St Martin’s Press, pp. 131150.Google Scholar
Korpi, W. (1983), The Democratic Class Struggle, London: Routledge and Kegan Paul.Google Scholar
Korpi, W. (1985), ‘Power resources approach vs. action and conflict: on causal and intentional explanations in the study of power’, Sociological Theory 3(2): 3145.Google Scholar
Kristov, L., Lindert, P. and McClelland, R. (1992), ‘Pressure groups and redistribution’, Journal of Public Economics 48: 135163.Google Scholar
Kwon, H.Y. and Pontusson, J. (2010), ‘Globalization, labour power and partisan politics revisited’, Socio-Economic Review 8: 251281.Google Scholar
Laakso, M. and Taagepera, R. (1979), ‘‘Effective’ number of parties: a measure with application to West Europe’, Comparative Political Studies 12(1): 327.Google Scholar
Larcinese, V. (2007), ‘Voting over redistribution and the size of the welfare state: the role of turnout’, Political Studies 55(3): 568585.Google Scholar
Lijphart, A. (1997), ‘Unequal participation: democracy’s unresolved dilemma’, American Political Science Review 91(1): 114.Google Scholar
Lin, T., Enelow, J. and Dorussen, H. (1999), ‘Equilibrium in multi-candidate probabilistic spatial voting’, Public Choice 98: 5982.Google Scholar
Lindert, P. (2004), Growing Public: Social Spending and Economic Growth Since the Eighteenth Century, New York: Cambridge University Press.Google Scholar
Lupu, N. and Pontusson, J. (2011), ‘The structure of inequality and the politics of redistribution’, American Political Science Review 105(2): 316336.Google Scholar
Luxembourg Income Study (LIS) database (2015), ‘Multiple countries; jobs run on 14 January 2015’. Luxembourg: LIS. Retrieved from http://www.lisdatacenter.org.Google Scholar
Mahler, V. (2008), ‘Electoral turnout and income redistribution by the state: a cross-national analysis of the developed democracies’, European Journal of Political Research 47: 161183.Google Scholar
Mahler, V. and Jesuit, D. (2008), Fiscal redistribution dataset, Version 2. Retrieved 26 August 2011 from http://www.lisdatacenter.org/resources/other-databases/.Google Scholar
Markus, G. and Converse, P. (1979), ‘A dynamic simultaneous equation model of electoral choice’, American Political Science Review 73: 10551070.Google Scholar
Meltzer, A.H. and Richard, S.F. (1981), ‘A rational theory of the size of government’, Journal of Political Economy 89: 914927.Google Scholar
Meltzer, A.H. and Richard, S.F. (1983), ‘Tests of a rational theory of the size of government’, Public Choice 41(3): 403418.Google Scholar
Milanovic, B. (2000), ‘The median-voter hypothesis, income inequality, and income redistribution: an empirical test with the required data’, European Journal of Political Economy 16(2): 367410.Google Scholar
Moene, K. and Wallerstein, M. (2001), ‘Inequality, social insurance, and redistribution’, American Political Science Review 95(4): 859874.Google Scholar
Mueller, D. (2003), Public Choice III, Cambridge: Cambridge University Press.Google Scholar
Organisation for Economic Cooperation and Development (2014), OECD STAN indicators, Labour Force Statistics and Electronic database (OECD Stat). Retrieved 12 December 2014.Google Scholar
Pierson, P. (1996), ‘The new politics of the welfare state’, World Politics 48(2): 143179.Google Scholar
Pontusson, J. and Rueda, D. (2010), ‘The politics of inequality: voter mobilization and left parties in advanced industrial states’, Comparative Political Studies 43: 675705.Google Scholar
Pontusson, J., Rueda, D. and Way, C. (2002), ‘Comparative political economy of wage distribution: the role of partisanship and labor market institutions’, British Journal of Political Science 32(2): 281308.Google Scholar
Przeworski, A. (1985), Capitalism and Social Democracy, New York: Cambridge University Press.Google Scholar
Rodriguez, F. (1999), ‘Does distributional skewness lead to redistribution? Evidence from the United States’, Economics and Politics 11(2): 171199.Google Scholar
Romer, T. (1975), ‘Individual welfare, majority voting, and the properties of a linear income tax’, Journal of Public Economics 14: 163185.Google Scholar
Ross, M. (2006), ‘Is democracy good for the poor?’, American Journal of Political Science 50(4): 860874.Google Scholar
Rueda, D. (2005), ‘Insider–outsider politics in industrialized democracies: the challenge to social democratic parties’, American Political Science Review 99(1): 6174.Google Scholar
Rueda, D. (2008), ‘Left government, policy, and corporatism: explaining the influence of partisanship on inequality’, World Politics 60(3): 349389.Google Scholar
Schumpeter, J.A. (1942), Capitalism, Socialism and Democracy, New York: Harper Brothers.Google Scholar
Stephens, J.D. (1979), The Transition from Capitalism to Socialism, London: Macmillan.Google Scholar
Swank, D. (2013), Comparative political parties dataset: electoral, legislative, and government strength of political parties by ideological group in 21 capitalist democracies, 1950-2011. Electronic database, Department of Political Science, Marquette University. Retrieved 14 January 2015 from www.marquette.edu/polisci/faculty_swank.shtml.Google Scholar
Timmons, J. (2010), ‘Does democracy reduce economic inequality?’, British Journal of Political Science 40: 741757.Google Scholar
Visser, J. (2011), Institutional characteristics of trade unions, wage setting, state intervention and social pacts database. Version 3.0. Amsterdam Institute for Advanced Labor Studies, University of Amsterdam. Retrieved 12 November 2011 from http://www.uva-aias.net/208.Google Scholar
Wallerstein, M. (1999), ‘Wage setting institutions and pay inequality in advanced industrial societies’, American Journal of Political Science 43(3): 649680.Google Scholar
Weissberg, R. (1978), ‘Collective vs. dyadic representation in congress’, American Political Science Review 72: 535547.Google Scholar
Wilensky, H. (1975), The Welfare State and Equality: Structural and Ideological Roots of Public Expenditures, Berkeley, CA: University of California Press.Google Scholar
Wooldridge, J. (2002), Econometric Analysis of Cross Section and Panel Data, Cambridge: MIT Press.Google Scholar
World Bank (2014), World Development Indicators, Washington, DC: World Bank.Google Scholar
Wittman, D. (1983), ‘Candidate motivation: a synthesis of alternative theories’, American Political Science Review 77(1): 142157.Google Scholar
Supplementary material: File

Wong supplementary material

Appendix

Download Wong supplementary material(File)
File 123.4 KB
Supplementary material: File

Wong supplementary material

Wong supplementary material 1

Download Wong supplementary material(File)
File 72.2 KB