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The Economic Effects of Electoral Rules

Evidence from Unemployment Benefits

Bibliographic Data

ID12802484
AuthorsVincenzo Galasso (0000-0002-3882-0587, corresponding author), Salvatore Nunnari (0000-0002-1525-798X)
Year2019
Volume14
Issue3
Pages259-291
Publication date2019-07-15
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueQuarterly Journal of Political Science (JOURNAL)
Journal identifiersISSN: 1554-0626 • E-ISSN: 1554-0634
PublisherNow Publishers (PUBLISHER • NL)
DOI10.1561/100.00018104
OpenAlexW2891580337
LanguageEN
Citations received1
References cited44

This paper provides a novel test of the link from electoral rules to economic policies. We focus on unemployment benefits because their classification as a broad or targeted transfer may vary – over time and across countries – according to the geographical dispersion of unemployed citizens, the main beneficiaries of the program. A simple theoretical model delivers unambiguous predictions on the interaction between electoral institutions and the unemployment rate in contestable and safe districts. Due to electoral incentives, the difference in the unemployment generosity between majoritarian and proportional systems depends on the difference in the unemployment rate between contestable and safe districts. We test this prediction using a novel dataset with information on electoral competitiveness and unemployment rates at district level, and different measures of unemployment benefit generosity for 16 OECD countries between 1980 and 2011. The empirical analysis strongly supports the theoretical predictions

Demographic economics · Economics · Empirical evidence · Generosity · Incentive · Labour economics · Macroeconomics · Microeconomics · Political science · Unemployment · Unemployment rate · Economic Policies and Impacts

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Unique citing works1
Citations per year0,2
Citation span2021 - 2021 (1)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1

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