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Inequality and the demand for redistribution

Are the Assumptions of the New Growth Theory Valid?1

Bibliographic Data

ID4237274
AuthorsMalte Lübker (International Labour Organization, corresponding author)
Year2007
Volume5
Issue1
Pages117-148
Publication date2007-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueSocio-Economic Review (JOURNAL)
Journal identifiersISSN: 1475-1461 • E-ISSN: 1475-147X
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ser/mwl002
OpenAlexW1969362669
LanguageEN
Citations received89
References cited46

One prominent strand of the new growth theory has identified the political process as a potential channel to link high inequality to lower long-term growth. Several authors have argued that (i) higher inequality causes higher demand for redistribution, (ii) which leads to greater redistribution and higher taxes, and (iii) which is in turn harmful to growth. This article addresses the first step of this argument, a proposition that has been widely accepted as a stylized fact. Using cross section data for 26 countries from the ISSP's module on Social Inequality, it presents an empirical test that yields no support for the idea that public support for redistribution rises with inequality across countries. This finding is attributed to the influence of social justice norms that vary greatly between groups of culturally similar countries.

Argument (complex analysis) · Demographic economics · Development economics · Economic inequality · Economics · Inequality · Macroeconomics · Political science · Politics · Proposition · Public economics · Redistribution (election) · Social inequality · Stylized fact · Fiscal Policy and Economic Growth · Income, Poverty, and Inequality · Law · Mathematics · Social Policy and Reform Studies

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Unique citing works89
Citations per year4,05
Citation span2004 - 2026 (23)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 82

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