Income Inequality and Voter Turnout Daniel Horn GINI Discussion Paper 16 October 2011 Growing Inequalities’ Impacts Acknowledgement Earlier version of this paper was presented at the GINI Year 1 conference in Milan, February 4-5. 2011. Comments from the participants and comments from Márton Medgyesi and Tamás Keller are warmly acknowledged. Remaining errors are solely mine. October 2011 © Daniel Horn, Amsterdam General contact: [email protected] Bibliographic Information Horn, D. (2011). Income inequality and voter turnout - evidence from European national elections. Amsterdam, AIAS, GINI Discussion Paper 16. Information may be quoted provided the source is stated accurately and clearly. Reproduction for own/internal use is permitted. This paper can be downloaded from our website www.gini-research.org. Income inequality and voter turnout Evidence from European national elections Daniel Horn TÁRKI Social Research Institute (TÁRKI) Institute of Economics, Hungarian Academy of Sciences 17 October 2011 DP 16 Daniel Horn Page • 4 Income inequality and voter turnout Table of contents Abstract.......................................................................................................................................................................7 1. Voter turnout and inequality..................................................................................................................................11 1.1.Hypotheses................................................................................................................................................................16 2. Data and method. ..................................................................................................................................................17 3.Results. ..............................................................................................................................................................21 3.1.Declining turnout – hypothesis 1............................................................................................................................21 3.2.Income bias – hypothesis 2a....................................................................................................................................22 3.3.Inequality on the top and at the bottom – hypothesis 2b......................................................................................24 3.4.Universal welfare states – hypothesis 3.................................................................................................................25 4.Conclusion and further comments. ...........................................................................................................................29 References..................................................................................................................................................................31 Appendix.....................................................................................................................................................................33 GINI Discussion Papers.................................................................................................................................................47 Information on the GINI project.....................................................................................................................................49 Page • 5 Daniel Horn Page • 6 Income inequality and voter turnout Abstract 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 Page • 7 Daniel Horn Page • 8 Income inequality and voter turnout While effects of individual resources and institutional characteristics on political participation have long been established, there is no knowledge of the effect of inequality on political participation. In particular, does an increase in inequality mobilize or de-mobilize citizens to participate in politics? We know only a little how societal environment affects voter political participation. Inequality, for instance, can have an impact through changing social norms (Lister 2007), through altered political agenda (Solt 2010; Mueller and Stratmann 2003) or through other chanels (Paczynska 2005). It is thus likely that in societies with greater income inequalities, we should observe polarization of participation modes, where higher inequality will be associated with a larger divergence of participation. This paper looks only at one of these modes of political participation: voter turnout. Although voting can be seen as the least unequal type of participation, it is still far from being unbiased (Lijphart 1997). We know that voting is strongly conditioned on socio-economic position (Geys 2006b; Lijphart 1997; Blais 2006; Gallego 2007), on civic resources (Verba et al 1995), and also on country level factors (Geys 2006b, 2006a; Blais 2006). But we know less about the link between inequality and voter turnout. This paper will look at this link, and speculate about the possible reasons why inequality might influence voter turnout. In the following, I first review the current literature on the link between inequality and voter turnout, and derive some hypotheses from these. The next section introduces the European Election Survey (EES) data which is used to test the hypotheses, and executes the tests. The third section speculates about the results, while the last section concludes. Page • 9 Daniel Horn Page • 10 Income inequality and voter turnout 1. Voter turnout and inequality Voter turnout has been low and steadily declining, especially in the developed countries, throughout the last decades (e.g. Lijphart 1997). The average European voter turnout was around 85% up until the mid-80’s, and has dropped a massive 10-15 percentage points ever since. This drop is partly due to the introduction of the ten Central-Eastern European (CEE) countries into the European community, but can also be observed within the Western-European states, although to a smaller extent, as well as within the CEE part of Europe (see 1. figure below and 10. figure in the appendix). CEE 50 60 70 80 90 non-CEE 1940 1960 1980 2000 20201940 1960 1980 2000 2020 Year Source:IDEA Voter turnout, parlamentary elections 60 70 80 90 Voter turnout, parlamentary elections 1. 1.figure–AveragevoterturnoutinEuropeancountries figure – Average voter turnout in European countries all Europe 1940 1960 1980 Year 2000 2020 Source:IDEA Similarly, income inequalities have grown during the last couple of decades. This trend is Similarly, income inequalities have grown during the last couple of decades. This trend is observable in more observable in more than two-thirds of the OECD countries, independent of the utilized than two-thirds of the OECD countries, independent of the utilized measure (OECD 2008). Income inequali- measure (OECD 2008). Income inequalities tend to fluctuate much less than voter turnout ties tend to fluctuate much less than voter turnout (see 2. figure below and 11. figure in the appendix). Also, it is (see 2. figure below and 11. figure in the appendix). Also, it is questioned whether the observed questioned whether observed variance of the indicators of inequality are due to the actualof variance social variance of thetheindicators of inequality are due to the actual variance socialofinequalities or inequalities or rather due to measurement bias. rather due to measurement bias. Nevertheless, both voter turnout and measures of income inequality vary considerably between countries. The argument that we should only observe income measures to change very little or very slowly would question the adequacy of time series models (unless data for a long period were available). But variance between countries offers the possibility to identify the relation between inequality and voter turnout using cross-country models. Page • 11 Daniel Horn Nevertheless, both voter turnout and measures of income inequality vary considerably between countries. The argument that we should only observe income measures to change very little or very slowly would question the adequacy of time series models (unless data for a long period were available). But variance between countries offers the possibility to identify the relation between inequality and voter turnout using cross-country models. 2.figure‐AverageGinicoefficientinEuropeancountries 2. figure - Average Gini coefficient in European countries CEE 26 28 Gini 30 32 non-CEE 1995 2000 2005 2010 1995 2000 2005 2010 year Source:Eurostat Gini 28 28.5 29 29.5 30 30.5 all Europe 1995 2000 year 2005 2010 Source:Eurostat In order to minimize measurement bias, I use several indicators of inequality (see 2. table in the appendix). In order to minimize measurement bias, I use several indicators of inequality (see 2. table in Beside the Eurostat’s income Gini coefficient I use a Gini of earnings (SSO 2009), an s80/s20 ratio (SSO 2009), the the appendix). Beside the Eurostat’s income Gini coefficient I use a Gini of earnings (SSO mean distance from the median Lancee and vanmean de Werfhorst (2011),from a poverty ratemedian from the Statistics 2009), an s80/s20 ratioindicator (SSOof2009), the distance the indicator of Lancee on Income Conditions(2011), (SILC) database and two p95/p5 one from the Luxembourg Income and Living and van and de Living Werfhorst a poverty rate measures, from the Statistics on Income Study (LIS) (Tóth and Keller 2011) and and one from thep95/p5 SILC database. These all indicate overall income inequaliConditions (SILC) database two measures, one from the Luxembourg Income Study (LIS) and above Keller and oneI from database. all indicate overall ties. I also look (Tóth at inequalities and2011) below the median. use the the aboveSILC and below the medianThese MDMI indices income inequalities. alsoand look at inequalities above below the median. I use the above (Lancee and van de WerfhorstI 2011) the p95/p50 and p50/p5 figures fromand the LIS and from the SILC databases and median MDMI indices (Lancee and van de Werfhorst 2011) and the p95/p50 (see below 3. table inthe the appendix). and p50/p5 figures from the LIS and from the SILC databases (see 3. table in the appendix). 3. figure below shows the association between voter turnout and different measures of income inequalities. Apparently, the association is not very strong, and negative – if any. This mild association is unsurprising if we consider that voter turnout is directly influenced byPagemany factors, mostly unrelated to inequalities. Below I summarize the main driving forces • 12 of voter turnout and also present some hypotheses about the relation of inequality and Income inequality and voter turnout 3. figure below shows the association between voter turnout and different measures of income inequalities. Apparently, the association is not very strong, and negative – if any. This mild association is unsurprising if we consider that voter turnout is directly influenced by many factors, mostly unrelated to inequalities. Below I summarize the main driving forces of voter turnout and also present some hypotheses about the relation of inequality and turnout. 3.figure–theassociationbetweenmeasuresofincomeinequalityandvoterturnout Voter turnout 40 60 80 HU CZFI SI IE SK MT GR IT 100 BE CYLU DK SE AT NL DE ES PT FR EEUK BG PL LT LU MTBE CY GR DK SENL AT IT DE ES HU FISICZ IEPT EE FR UK SK Voter turnout 40 60 80 100 3. figure – the association between measures of income inequality and voter turnout LV LT BG RO 20 20 RO LV PL Voter turnout 40 60 80 DK SE NL AT BE LU CY DE GR IT ES HU IE EE UK LV PT PL 10 20 BE DK 30 40 Poverty, SILC 50 LU CY GR SE ITNLDEAT ES IEHU FI CZ SI UK EE LV FR SK PL LT 60 PT 20 LT 20 SI CZ FI FR SK 40 100 30 35 Gini, Eurostat 2009 Voter turnout 40 60 80 25 100 20 .3 .4 .5 MDMI .6 .7 .8 .2 .25 .3 .35 earning Gini, SSO .4 (source: European Election Study/Piredeu, Eurostat, SILC, Lancee-v.d.Werfhorst, SSO) (source:EuropeanElectionStudy/Piredeu,Eurostat,SILC,Lancee‐v.d.Werfhorst,SSO) The most often model to predict turnout is the Downsian rational vote The most oftenused used model to predict individualindividual voter turnout voter is the Downsian rational voter model (Downs model 1957). statesthey that vote or not base 1957). (Downs The model states that The peoplemodel decide whether willpeople vote or notdecide based onwhether an expectedthey utility.will The expected onutility an expected is versus the benefit from theirparty choice (party) being th is the benefit utility. from their The choiceexpected (party) beingutility the winner the disutility of another being elected, winner versus the disutility of another party being elected, multiplied by the probability o multiplied by the probability of their vote being decisive and the costs of voting subtracted from this. The paradox their vote being decisive and the costs of voting subtracted from this. The paradox of (no of (not) voting is thus the fact that this “equation” is likely to be negative if many people vote (since the prob- voting is thus the fact that this “equation” is likely to be negative if many people vote (sinc ability of a vote being decisive is almost nil, while the costs of voting is likely to be greater than zero), but if few the probability of a vote being decisive is almost nil, while the costs of voting is likely to b people vote the expected utility is certainly positive (since the probability of a vote being decisive is great). Many greater than zero), but if few people vote the expected utility is certainly positive (since th resolutions for this paradox have been developed (see Geys 2006b for a comprehensive review). The addition of probability of a vote being decisive is great). Many resolutions for this paradox have bee consumption benefit (Riker and Ordeshook 1968), taking ethical or altruistic preferences into account (Goodin developed (see Geys 2006b for a comprehensive review). The addition of consumptio benefit (Riker and Ordeshook 1968), taking ethical or altruistic preferences into accoun Page • 13 (Goodin and Roberts 1975), the minimax regret strategy (Ferejohn and Fiorina 1974) or gam Daniel Horn and Roberts 1975), the minimax regret strategy (Ferejohn and Fiorina 1974) or game theoretical approaches (Palfrey and Rosenthal 1983, 1985; Ledyard 1984) have all tried to address the paradox of voting. Indeed, the “pure” Downsian model of voting addresses the questions of marginal changes (why a middling person might vote) much better than the aggregate level of turnout (how many people vote) (Geys 2006b, p18). Although using the Downsian framework it is hard to explain aggregate levels of turnout, there are several, empirically well documented factors that increase or decrease one’s probability to cast a vote. Individual characteristics certainly matter: richer, more affluent people are much more likely to vote, just as higher education leads to a higher probability of voting (Lijphart 1997). The literature, understandably, is more occupied with country level factors that affect turnout. For instance Blais (2006) and Geys (2006a) both provide comprehensive reviews about these factors. Geys (2006a) clusters country level factors into three groups: socio-economic, political and institutional variables. Examples of socio-economic factors are population size, population concentration, population stability, population homogeneity or previous turnout level. Political variables can be the closeness (or marginality) of an election (i.e. how close the outcome of the election is), campaign expenditures, or political fragmentation. Institutional variables are the electoral system (majority, proportional representation or plurality voting), compulsory voting, concurrent elections, registration requirements… etc. Geys (2006a) in his review concludes that little agreement has been reached with many of the above factors. Institutional factors are the most consensual: compulsory voting, easier registration procedures, concurrent elections and proportional representation all foster higher turnout. Population size and electoral closeness also seem to be affecting turnout in general, although several of the analyzed papers had not found any link between them. The review also notes that population heterogeneity (homogeneous groups within the society) seem to have no effect on turnout, although theoretically “as cohesion increases group solidarity (and ‘social pressure’), political participation in communities with high degree of socio-economic, racial or ethnic homogeneity should be higher than in areas where this is not the case” (Geys 2006a p.644-645, emphasis in original). The question similar to population heterogeneity is in the focus of this paper as well, so this no-relationship finding is discouraging. However, the reviewed papers are mostly using a Herfindahl-Hirschmann concentration index to proxy heterogeneity, which is quite distant from the measures of inequality (used by this paper). Moreover, there are convincing new studies (e.g. Kaniovski and Mueller 2006; Yamamura 2009; Funk 2008) that argue that more heterogeneous communities Page • 14 Income inequality and voter turnout are less likely to vote, in line with the expectations of the group-based model (see Uhlaner 1989; Grossman and Helpman 2002; Filer, Kenny, and Morton 1993). There are some studies that directly test the association of inequality and voter turnout. The most comprehensive study is Solt’s (2010) testing the Schattschneider hypothesis (Schattschneider 1960). In his book, Schattschneider wrote that large economic inequalities lead to low participation rates as well as a high income bias in participation. “As the rich grow richer relative to their fellow citizens […] they consequently grow better able define the alternatives that are considered within the political system and exclude matters of importance to poor citizens” (Solt 2010 p.285) Hence poor will less likely to cast a vote, as inequality goes up, since their expected benefit from voting declines. Solt (2010) uses American gubernatorial elections data to test the association between turnout and inequality. He uses state level Gini coefficient calculated for three years (1980, 1990, 2000) to proxy income inequality, while voter turnout is also for these years. Solt shows that income inequality associates negatively with electoral participation, while higher income people tend to vote relatively more as inequality rises. A similar conclusion is presented by Mueller ad Stratmann (2003), but with a different theoretical approach. They argue that if upper classes have higher participation rates than lower classes, and upper classes favor right of center parties, lower classes left of center parties, and right of center parties adopt policies that benefit the upper classes, while left of center parties adopt policies that favor the lower classes, then lower participation rates will lead to higher income inequalities. Hence their conclusion: voter turnout associates negatively with income inequality, but it is the decreasing participation rate that drives inequalities and not vice-versa. That is, their result is the same, but the line of argument is different from that of Schattschneider (1960). The Muller and Stratmann (2003) argument fits the Meltzer and Richard (1981) logic, namely that “when the mean income rises relative to the income of the decisive voter, taxes rise, and vice versa.” If fewer people vote, then relatively more rich people vote, so median voter income will be larger (with mean income unchanged), which decreases taxes (preferences for redistribution is smaller). One might also argue oppositely. Based on the Meltzer and Richard (1981) logic, if government decides only about the size of redistribution, then voter turnout should relatively be low if inequality is low, and turnout be high if inequality is high. When inequality is low, then poor people have little to gain, and rich little to lose if government redistributes, so why would they vote? Similarly if inequality is high, then poor have a lot to gain, and rich Page • 15 Daniel Horn have a lot to lose from redistribution, hence they will vote. This, of course, is an overly simplified argument not taking into account several other incentives driving one to vote. While both Solt (2010) and Muller and Stratmann (2003) base the negative association of inequality and voter turnout on differences in participation rates between people with different incomes, Lister (2007) uses differences in social norms between countries to explain the negative association. He argues that the missing link (omitted variable) between inequality and turnout is institutions. Institutions affect social norms, which affect individual behavior. Universalist welfare states encourage solidarity and participation, and thus foster higher voter turnout than other types of welfare states. Nevertheless, his argument also leads to a negative relation between inequality and turnout: universal welfare states tend to have lower income inequalities and higher turnout. The Downsian median voter logic, on the other hand, might lead one to argue in a different way. Growing inequalities might increase the probability of the lower income/ lower class people to influence politics more, if they can coalesce with the middle. In other words, if rising inequalities are due to rising income on the top, then the redistributive preferences of middle will be closer to the bottom than to the top; thus the middle might unite with the lower income/lower classes to “conquer” the upper classes. This would mean that higher inequality on the top would lead to a relatively higher turnout for the lower class/lower income. On the other hand, if rising income is due to a relatively decreasing income for the poor (as compared to the middle), then the coalition of the middle with the upper classes seem theoretically more likely (Lupu and Pontusson 2011). Hence, when looking at the relation between inequality and turnout one has to look not only at measures of general income inequality but also at differences between the bottom and the middle and the top. 1.1. Hypotheses From the above literature I derive three separate hypotheses for testing: 1. Inequality associates negatively with voter turnout, ceteris paribus the other factors that are shown to influence turnout. 2. The reason for this negative association is that a. turnout for lower income people tend to be relatively smaller, when overall inequality is high (i.e. if inequality is high poor people tend to vote less, while rich tend to vote more, but this latter does not counterbalance the drop of “poor-votes”), or alternatively b. turnout for lower income people tend to be relatively smaller if inequality at the bottom is high, but turnout for lower income tend to be relatively higher if inequality on the top is high. or 3. Universal welfare states have higher turnout as well as lower income inequality. Page • 16 Income inequality and voter turnout 2. Data and method I use the 2009 PIREDEU European Election Study (EES 2010; van Egmond et al. 2010) to test the association between inequality and turnout. The study was conducted right after the 2009 European parliamentary elections with the aim to research the EU elections. The main advantage of these surveys is that they contain all 27 European countries, with approximately 1000 responses from each. Besides the turnout measure it also contains a modest background questionnaire about individual characteristics, including education, gender and a subjective income measure (see below). The EES also provides substantial amount of data about the institutional system. The EES data was collected at one point in time in each country, thus the time since the last national election varies across countries, as a consequence the responses about actual turnout will also be differently overstated (people remember harder to an earlier election). 1. table below shows the participating countries and their aggregate voter turnout. The right column shows the actual turnout at the 2009 national elections. Unfortunately, the questionnaire did not have a question about actual turnout, but rather asked about the party vote. Nevertheless this question had the option “did not cast a vote” but many have refused to answer (e.g. in Italy, where voting is compulsory more than 26% of the voters did not answer), and also many had not remembered the action (e.g. in Latvia almost 20% did not know the answer). Nevertheless, I relied on those, who had definite answer; hence the turnout measure is those who voted over those who voted plus those who did not vote (reported figure column). Since surveys tend to overestimate the actual voter turnout – and as can be seen, differences between the reported and the official figures are sometimes substantial (e.g. Slovakia or Romania) – I used the ratio of the 2009 official/reported voter turnout ratio as weights in the estimations below. Page • 17 Daniel Horn 1. table – Voter turnout, actual and observed 2009 refused to answer not voted voted not eligible don't know reported figure* official figure AUSTRIA BELGIUM BULGARIA CYPRUS CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY LATVIA LITHUANIA LUXEMBOURG MALTA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK 13,60 17,47 10,60 9,00 5,59 1,10 3,57 4,80 16,40 12,75 5,60 11,24 5,39 26,30 3,20 6,90 8,29 30,90 3,18 4,29 14,60 7,78 6,50 8,30 10,90 3,29 6,80 2,90 4,79 19,80 4,50 21,67 3,40 19,86 8,10 7,70 5,48 6,10 14,53 6,79 5,80 15,08 23,40 9,69 2,50 5,57 22,65 8,80 18,64 14,86 7,60 8,30 2,00 11,60 77,60 68,86 56,80 78,70 65,49 92,50 64,15 76,40 61,70 71,41 84,50 69,75 74,53 57,60 58,14 58,10 62,64 60,80 86,17 62,97 65,00 64,61 69,78 76,60 76,80 88,22 73,40 1,30 1,90 2,20 2,80 2,55 1,00 2,48 1,80 3,50 3,39 2,20 1,19 3,50 1,00 4,40 1,90 8,19 2,00 1,49 2,20 4,40 0,50 2,46 0,80 1,60 2,50 3,50 4,60 6,99 10,60 5,00 4,71 2,00 9,93 8,90 10,70 6,97 1,60 3,28 9,79 9,30 19,18 9,70 11,19 3,80 3,58 7,88 7,20 8,47 6,40 6,70 2,40 3,99 4,70 0,96 0,93 0,74 0,95 0,75 0,96 0,76 0,90 0,89 0,93 0,93 0,83 0,92 0,91 0,79 0,71 0,87 0,96 0,94 0,74 0,88 0,78 0,82 0,91 0,90 0,98 0,86 0,79 0,91 0,56 0,89 0,64 0,87 0,62 0,65 0,60 0,78 0,87 0,68 0,67 0,78 0,62 0,49 0,92 0,93 0,80 0,54 0,64 0,39 0,55 0,63 0,74 0,82 0,62 mean 9,56 10,46 70,49 2,47 7,02 0,87 0,74 *voted/(voted+ not voted) source: European Election Study/Piredeu 2009. The EES data allows for numerous individual controls. The base model (see 6. table in the appendix) includes individual level controls as well as country level controls. The individual controls are age, age squared, gender, age when the respondent finished education and a within country standardized “subjective standard of living”.1 Country level controls are compulsory voting, multiple election at the same time, size of population, existence of a threshold for a party to get in the parliament, electoral system (from proportional (0) to plurality (5)), presidential system, federalism, time since last national election (years), percentage of other nationalities, GDP as percentage 1 The question for the subjective standard of living was: „Taking everything into account, at about what level is your family’s standard of living? If you think of a scale from 1 to 7, where 1 means a poor family, 7 a rich family, and the other numbers are for the positions in between, about where would you place your family?” Since the country mean for this question tend to correlate with income inequalities I standardized the answers within country (0 mean, 1 sd). Page • 18 controls are for age, aage squared, gender, ageparliament, when the respondent finished education and a threshold to get in when the system (from are squared, age,party agegender, squared, gender, whenelectoral the respondent finished education (0) and to a controlscontrols are age, age age the age respondent finished education and aproportional 1 within country voting, standardized “subjective standard ofsame living”. Country level controls are compulsory multiple election at the time, size of population, existence of a 1 Country 1 Country pluralitystandardized (5)), presidential system, federalism, time national election (years), within country “subjective standard of living”. level last controls are level within country standardized “subjective standard of since living”. controls are compulsory voting, multiple election at the same time, size of population, existence ofandavoter turnout (0) to Income inequality threshold for a party to get in the parliament, electoral system (from proportional compulsory voting, multiple at the same size of population, of a all variables percentage ofvoting, otherelection nationalities, GDPtime, as the percentage of mean EU 27. See compulsory multiple election at same time, sizeexistence of population, existenceinofthe a threshold for a party to get in the parliament, electoral system (from proportional (0) to plurality (5)), presidential system, electoral federalism, time since last national election (years), threshold for a party to get in the parliament, system (from proportional (0) to appendix 4. table andtosystem, 5.gettable . I parliament, use all of since these variables controls in each of threshold forpresidential a party infederalism, the electoral systemas (from proportional (0)the to plurality (5)), time last national election (years), of mean EU 27. See all variables in the appendix 4. table and 5. table. I use all of these variables as controls in each plurality (5)), presidential system, federalism, time since last national election (years), percentage of other nationalities, GDP as percentage of mean EU 27. 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In estimate the st nd separately (2a) (2a) in the 1 step, then I use the country means as the dependent variable in the 2 step. That is, I (2a) the 2 step estimation process I estimate a predicted probability for each each country 1st step, then I and use the country means asofthe dependent variable male in thevoter, 2nd step. That is,school I respondent estimate the within equation, predict the probability voting for a 40-year-old who went to untilto age of 18, until age of 18, estimate the equation, and predict the probability of voting for a 40-year-old male voter, who went school equation, separately and predict the of voting a 40-year-old malemeans voter, who wentdependent to school until age of in 18,the 2nd step. That is, I then for I use the country as the variable in probability the 1st step, with mean standard of living. In order to correct for the different efficiency of the first step estimates I use the (2a) with mean standard of living. In order to correct for the different efficiency of the first with mean standard of living. In order to correct for the different efficiency of the first step estimates I use thestep estimates I use the estimate the deviation of the predicted probabilities as weight in the second step. inverse standard equation, and predict the probability of voting forin athe 40-year-old who went to school until age of 18, inverse standard of deviation the predicted as weight second step.male inversedeviation standard of probabilities the predicted probabilities as weight in thevoter, second step. equation, (2b) and (2a)predict the probability of voting for a 40-year-old male voter, who went to school until age of 18, (2b) with(2b) mean standard of living. In order to correct for the different efficiency of the first step estimates I use the where PrVoteand is the predicted meanof ofvoting voting. for The atheoretical difference this went approach and the until age of 18, equation, predict the country probability 40-year-old male between voter, who to school where PrVote is the predicted countryInmean of to voting. Theprobabilities theoretical difference between this approach andestimates the with mean standard of living. order correct for the different efficiency of the first step I use the and the inverse standard deviation of the predicted as weight in the second step. where PrVote is the the 2predicted country meanforofdifferent voting. effects The theoretical difference between this approach logit model is that estimation allows of the individual characteristics within with meanthe standard ofstep living. In order to correct for the different efficiency of the within first step estimates I use the logit model is that 2 step estimation allows for different effects of the individual characteristics (2b) countries, i.e.deviation theis2 that step is athe more flexible model compared thedifferent logit. logit model the 2 predicted step estimation allowsastofor of the individual characteristics within inverse standard of probabilities weight in the effects second step. deviation the predicted countries,inverse i.e. the 2standard step is a more flexibleofmodel compared probabilities to the logit. as weight in the second step. Finally, estimate where respondents are nested in countries: whereIPrVote isa hierarchical the predicted country mean of voting. Theto theoretical countries, i.e. the 2 step is amodel, more flexible model compared the logit. difference between this approach and the Finally, I estimate (2b)a hierarchical model, where respondents are nested in countries: logit model is thata hierarchical the 2 step estimation allows for different effects the individual characteristics within Finally, I estimate model, where respondents are nested in of countries: where PrVotefor is the the subjective predicted standard country mean of was: voting. The theoretical difference approach and the The question of living „Taking everything into account,between at aboutthis what 1 The where PrVote the predicted country mean voting. theoretical difference approach countries, i.e. the 2standard stepstandard is aofmore model compared to 1the logit. question foristhe subjective of flexible living was: „Taking everything into account, at about what level is your family’s living? If of you think ofThe a scale from to 7, where 1between means athis poor family, 7 and the logit modelstandard is thatother the 2numbers step estimation forin1different effects of athe individual within level is your family’s of living? If you think a allows scale from to 7, where 1 means poor 7 characteristics aFinally, family, and the are for of the positions between, about where wouldfamily, you place your at about what 1rich The question for the subjective standard of living was: everything into account, I estimate a hierarchical model, where respondents are„Taking nested in countries: a rich family, and the other numbers are for the positions in between, about where would you place your logit model is that the 2 2step estimation allows for different effectstoof theincome individual characteristics within counfamily?” country mean for this question tend compared correlate with I standardized countries, i.e.the the step isthis a more model the logit. level isSince your family’s standard offlexible living? you to think ofincome a scale from 1inequalities to I7,standardized where 1 means a poor family, 7 family?”the Since the country for question tend toIfcorrelate with inequalities answers withinmean country (0 mean, 1 sd). aFinally, rich family, and(0athe other numbers are forrespondents the positions between, about where would you place your the answers within mean, 1 sd). I country estimate hierarchical model, where arein nested in countries: tries, i.e. the 2question step is a for more flexible model compared to the logit. 1 The the subjective standard of was: „Taking everything account, Iatstandardized about what family?” Since the country mean for this question tend to correlate with incomeinto inequalities 10living 10 level is your family’s standard of living? If you think of a scale from 1 to 7, where 1 means a poor family, 7 the answers within country (0 mean, 1 sd). Finally,a1 Irich estimate a hierarchical model, where respondents are nested in in between, countries: about where would you place your family, and the other numbers are for the positions The question for the subjective standard of living was: „Taking everything into account, at about what family?” Sincefamily’s the country mean this question tend correlate inequalities standardized 10 level is your standard offor living? If you think of to a scale fromwith 1 to income 7, where 1 means a Ipoor family, 7 (3) the answers within country (0 mean, 1 sd). a rich family, and the other numbers are for the positions in between, about where would you place your where u is a country level error term. family?” Since the country mean for this question tend to correlate with income inequalities I standardized 10 where the u is answers a countrywithin level error term.(0 mean, 1 sd). country A big handicap of the 2 step estimation procedure is that it cannot handle interaction effects between individual A big handicap of thelevel 2 step estimation is that handle interactioncountry effects between anda group of and country variables (byprocedure definition), andit cannot also 10 that by predicting means, individual I pre-define 1 whose turnout will be the variable in the secondmeans, step. When testinga hypotheses 2 I have to use countrypeople, level variables (by definition), anddependent also that by predicting country I pre-define group of people, interaction terms: how the country level inequality affects the association between income and voter turnout. whose turnout will be the dependent variable in the second step. When testing hypotheses 2 I have to use interWithin hierarchical models, as well as within simple logit models, the interaction can easily be done. 2 step nd voter turnout. Within action estimation, terms: how on the the country affects theasassociation betweenfrom income step can easily be depicted (see otherlevel hand,inequality has its advantage well. The results the 2and below), unlikeasthe estimates the logit ormodels, the hierarchical estimates. hierarchical models, well as withinofsimple logit the interaction can easily be done. 2 step estimation, on Results Declining turnout – hypothesis 1 Page • 19 The point estimates of the individual controls in the base model (6. table) are all as expected. Daniel Horn the other hand, has its advantage as well. The results from the 2nd step can easily be depicted (see below), unlike the estimates of the logit or the hierarchical estimates. Page • 20 Income inequality and voter turnout 3. Results 3.1. Declining turnout – hypothesis 1 The point estimates of the individual controls in the base model (6. table) are all as expected. Age associates with higher turnout but at a declining rate, years spent in school education also increases turnout, richer tend to vote more, and women are just as likely to vote as men, if all above socio-economic characteristics are controlled for. From the country level features fewer factors are significant. The existence of a threshold decreases turnout, and presidential systems also have fewer people to cast a vote, while federalist states have a higher turnout. Nevertheless, since these country level characteristics are not in the focus of the paper, I leave them in the models as controls, even if they do not significantly associate with turnout. Tests for hypothesis 1 are in 7. table (logit), 8. table (2 step), and 9. table (hierarchical) in the appendix. All estimation procedures seem to provide the same results. Except the Eurostat Gini variable, and the s80/s20 ratio all income measures associate negatively with voter turnout, but very few are significant. Only the poverty rate shows significant association with the turnout across estimations, while the MDMI and the earnings Gini coefficients are also weakly (10% or less) significant in all models. The other four proxies (income Gini, s80/s20 and the two p95/p5 ratios) are all insignificantly related to voter turnout. However, if I consider that the models have taken into account several known influences of turnout, and that the number of countries are not very high I should conclude that these results are in line with the 1st hypothesis. It seems that inequality associates negatively with voter turnout, if we control for other factors which are claimed to influence turnout. 4. figure below depicts this association using the predicted probabilities from the 1st step of the 2 step procedure. It is apparent that the association between inequality and predicted voter turnout is not very strong, but negative. Especially the poverty rate associates closely with turnout, but all other indicators show a negative rather than a positive relation. Nonetheless, the reason for this negative association is not straightforward. The hypotheses above could allow for three different reasons: a) turnout for the poor declines as inequality goes up, b) turnout for the rich declines as inequality goes up or c) there is no change in the relative turnout of the different income people but universal welfare states drive the results. Page • 21 goes up, b) turnout for the rich declines as inequality goes up or c) there is no change in the relative turnout of the different income people but universal welfare states drive the results. Daniel Horn 4.figure–Associationofinequalitywithturnout–predictedprobabilitiesfromthe1ststepestimatesofthe2 4. figure – Association of inequality with turnout – predicted probabilities from the 1st step estimates of the 2 step stepprocedure procedure EE .6 PL voter turnout, pred. pr. .7 .8 .9 1 20 25 LT 30 35 Gini, Eurostat 2009 SEAT MT CY DK BE GR IT IE NLDE SI FR ESPT LU FI UK HU SK CZ BG EE 40 RO LV LT BG .6 PL 10 20 voter turnout, pred. pr. .7 .8 .9 1 CZ LV 30 40 50 Poverty rate, SILC SE DK AT NL SI BE CY IT DE FR LU ES FI 60 GR IE PT HU UK SK LV CZ EE LT PL .6 SI MT .3 voter turnout, pred. pr. .7 .8 .9 1 SEAT BE DK CY GR IT NL IE DE FR PT LU ES FI RO UK HU SK .4 .5 .6 .7 Mean distance from the median SE BE CY DK AT IE DE NL SI FRLU FI HU SK CZ IT 4 .8 GR PT ES RO UK LV EE LT PL .6 voter turnout, pred. pr. .7 .8 .9 1 lowess smoother 6 8 p95/p5, SILC BG 10 note: predicted probabilities are for a 40 year old man with average income, who finished education at age 18 note: predicted probabilities are for a 40 year old man with average income, who finished education at age 18 Incomebias–hypothesis2a 3.2. Income bias – hypothesis 2a Unfortunately the EES dataset does not contain an absolute measure of income or class. The income measure in the dataset is a subjective standard of living. The respondents place Unfortunately the EES dataset does not contain an absolute measure of income or class. The income measure themselves within seven categories as compared to others in the society, and thus are in the dataset is a subjective standard of living. The respondents place themselves within seven categories as com- endogenous with the inequality measures (e.g. the greater the inequality, the more people are pared to others in the society, and thus are endogenous with the inequality measures (e.g. the greater the inequality, likely to consider themselves poor). For this reason the interaction between the subjective the more people are likely to consider themselves poor). For this reason the interaction between the subjective standard of living and the inequality measure might be biased. 12The higher the inequality the more people tend to be poor (because it is a subjective / self evaluated measure). So a person, with similar probability of voting might consider herself poor in one country with high inequality and not poor in a country with low inequality. And viceversa a person might consider herself rich in a low inequality country while not rich in a high inequality country, assuming identical turnout probabilities. Hence the effect of the interaction of income with inequality on turnout could be biased. Unfortunately the direction of the bias is also not clear. It depends on our assumption of inequality on the subjective evaluation of income. If average income people tend to “de-valuate” their income more in an unequal country than rich people, then the effect of income on voter turnout will be downwardly biased. But if rich Page • 22 Income inequality and voter turnout tend to look at themselves as lesser rich in an unequal country as compared to the subjective income “decline” of an average income person, then income effect on voting will be upwardly biased. So the direction of bias of subjective income on turnout will depend on the relative evaluation of income across income groups. I could not find any suitable instrument that could solve this problem. I would need a variable that explains why one might consider herself poorer meanwhile being uncorrelated with voter turnout and only unconditionally correlated with inequality. Hence, the estimates of the interaction effect of lower income and inequality on turnout might be biased. In order to minimize bias I standardized the income proxy (subjective standard of living) within countries. By this, the cross-country correlation of the standardized income and the inequality measure will be zero, by definition. However, we do not rule out the fact that there will be more relatively poor people in higher income countries. Nevertheless, I believe that the size of this bias will be small (see argument about the direction of the bias), and thus only marginally affecting the substantial results. The lack of absolute income could also be a problem if we assume that absolute income matters as well as relative income (see Solt 2010). Within the Downsian framework, the lack of absolute income might not be a problem, if we disregard the “hard” costs of voting: people vote more likely when the probability of their vote being decisive goes up; hence their relative position within the society matters. However, if we assume that absolute income matters as well – poorer people have troubles paying the costs of voting, e.g. traveling to the voting booth is costly – the point estimates will be biased, due to an omitted variable bias. Although I must make the assumption that absolute costs does not matter, I believe that in developed countries casting a vote is not very expensive. 10. table and 11. table in the appendix shows that the subjective standard of living does not associate significantly with voter turnout through increased inequality: richer people are not more likely to vote as inequality goes up. None of the interaction effects are significant, moreover their signs are also not consistently negative or positive. Another way of looking at this income bias is to use the marginal effect if the subjective income on turnout from the 1st step estimation. 5. figure depicts the association of this marginal effect (estimated for the same 40 year old male schooled until age 18) with the different inequality measures. Apparently the same conclusion can be drawn: we cannot straightforwardly conclude that higher income people tend to vote more in more unequal countries. Page • 23 countries. Daniel Horn 5.figure–Incomebias–associationofinequalitywiththemarginaleffectofincome(standardofliving)from individuallevelregressions 5. figure– Income bias – association of inequality with the marginal effect of income (standard of living) from individual level regressions 3.3. NL DK CZ HU SKATBE SE SI 20 25 MT PL LT ESBG FR EE DE LU CY IE UK IT LV PT RO GR 30 35 Gini, Eurostat 2009 40 FI NL DK MT ESEE FR CZ UK HU DE AT SK SI BE PT LU CY IT IE GR SE 10 20 LT PL BG LV RO 30 40 50 Poverty rate, SILC 60 marginal effect, subj. st. of living 0 .02 .04 .06 .08 FI marginal effect, subj. st. of living 0 .02 .04 .06 .08 marginal effect, subj. st. of living 0 .02 .04 .06 .08 marginal effect, subj. st. of living 0 .02 .04 .06 .08 lowess smoother FI NL DK PL SE SI .3 CZ AT LT ESEE FR LV HU UK DE SK BE LU CY IT IE GR PT .4 .5 .6 .7 Mean distance from the median .8 FI NL DK PL EE ES FR CZHU DE AT SK SI BE LU CY IE SE 4 LT UK IT GR BG PT 6 8 p95/p5, SILC LV RO 10 Inequality on the top and at the bottom – hypothesis 2b Inequalityonthetopandatthebottom–hypothesis2b between income inequality on the top and at the bottom with voter 12. table below shows the association turnout. Results are not very robust, mainly due to the fact that the general indicators of inequality (MDMI and p95/p5), which can be separated along income distribution, are themselves poor explanators of turnout. Thus we see no strong association between inequality on the top and inequality at the bottom with voter turnout. However, the point estimates, as well as mild significance of the p95/p50 indicators and the p50/p5 LIS measure shows that higher inequality at the top associates with lower turnout, while higher inequality at the bottom goes together with higher turnout (or rather no association at all at the bottom). That is, the higher the difference between the very rich 15between the middle and the very poor does not and the middle decreases overall turnout, while higher difference change (or mildly increases) turnout. 13. table shows no indication of income effects at all. So the relative turnout of the rich and the poor, as shown by the interaction terms, does not change when inequality changes on the top or at the bottom. Although the point estimates are insignificant, they are against hypothesis 2b. i.e. richer people tend to vote more if inequality on the top is higher, while poorer tend to vote more if inequality at the bottom is higher. Page • 24 Income inequality and voter turnout This is just the opposite of what hypothesis 2b has assumed. These effects, however, are all insignificant, which might be due to the small number of countries, as well as the relatively unimportant effect of inequality. This is also what we see in 6. figure below: the different measures of income inequality on the top and at the bottom associate mildly with the predicted probability of voter turnout. Inequality on the top tend to go weakly and negatively together with turnout, while inequality at the bottom has no relation with turnout. 6. figure - Association of inequality on the top and at the bottom with turnout – predicted probabilities from the 1st 6.figure‐Associationofinequalityonthetopandatthebottomwithturnout–predictedprobabilitiesfrom step estimates of the 2 step procedure the1ststepestimatesofthe2stepprocedure PT LU UK SK HU LV EE CZ 1 CZ RO EE PL LT LV BG HU NL SI SK LV EE CZ -.35 -.3 -.25 -.2 MDMI, below the median GR ES IT UK LU HU EE PL 3 SE DK AT CY NL BE IE DE GR FI SI ITES FR PT UK LU HU SK LV CZ EE PL LT 1.5 1 2 2.5 p95/p50, SILC RO BG .7 .7 PL LT AT BE IE DE FISI NL 2 2.5 p95/p50, LIS SE DK voter turnout, pred. pr. .8 .9 FR PT UKLU DK DKSE NL AT FI BE DE SI 3 IE GR IT ES UK LU HU EE PL .7 ES IT SE AT voter turnout, pred. pr. .8 .9 GR BE CY IE DE FI 1.5 1 .6 .8 1 1.2 MDMI, above the median 1 .4 voter turnout, pred. pr. .8 .9 PT UK LU SKHU .7 .7 PL LT AT CY BENL GR IE DE SI FI IT FR ES .7 GRIE SE DK voter turnout, pred. pr. .8 .9 1 AT NL BE CY DE SI FI IT FR ES voter turnout, pred. pr. .8 .9 SE DK voter turnout, pred. pr. .8 .9 1 lowess smoother 2 2.5 3 3.5 p50/p5, SILC 4 2 2.2 2.4 2.6 2.8 p50/p5, LIS 3 Universalwelfarestates–hypothesis3 3.4. Universal welfare states – hypothesis 3 Although Lister (2007) uses the Gini coefficient to proxy universal welfare states – arguing that the lower the inequality the higher the state intervention is – for the purposes of this Although Lister (2007) uses the Gini coefficient to proxy universal welfare states – arguing that the lower the paper this proxy would obviously not be useful. Therefore, in order to test hypothesis 3, I inequality the higher the state intervention is – for the purposes of this paper this proxy would obviously not be have to use alternative measures of the welfare state. I will utilize government spending as useful. Therefore, in orderand to test hypothesis 3, Ispending have to use alternative of the welfare state. I will utilize percentage of GDP government on socialmeasures protection as percentage of GDP. Both are similar, widely used measures for the size ofonstate and thus for the government spendingbut as percentage of GDP and government spending socialinterventions, protection as percentage of GDP. welfare Esping-Andersen 1990). that the and larger spending, the(e.g. more Both are state similar,(e.g. but widely used measures for the sizeI ofassume state interventions, thus the for the welfare state universal the welfare state is. 7.figure and 8.figure below shows that government spending Esping-Andersen 1990). I assume that the larger the spending, the more universal the welfare state is. 7. figure and associates negatively with inequalities (the higher the spending the lower the inequalities), as 8. figure below shows that government spending associates negatively with inequalities (the higher the spending expected, and it also associates positively with voter turnout (8.figure and 9.figure). Thus Lister’s (2007) argument could hold: we have observed that inequality associates negatively Page • 25 with turnout, and also that inequality associates negatively with the welfare state, which associates positively with turnout. Hence the link between inequality and turnout could Daniel Horn the lower the inequalities), as expected, and it also associates positively with voter turnout (8. figure and 9. figure). Thus Lister’s (2007) argument could hold: we have observed that inequality associates negatively with turnout, and also that inequality associates negatively with the welfare state, which associates positively with turnout. Hence the link between inequality and turnout could indeed be driven by the welfare state. If universal welfare states are indeed an omitted variable, we should see the unbiased effect of income inequality on voter turnout after controlling for government spending. 7.figure‐governmentexpenditurevs.incomeinequality 7. figure - government expenditure vs. income inequality IELU BG GR UK PL CY IT FR DE NL CZ SK FI BE AT DK HU SE RO LV LT PL SK EEIE ES LU GR CY UK PT IT BE MT CZ DE SI NL FI AT HU 10 SI 40 45 50 55 35 40 10 35 RO LV LT IE LV EE LU ES PL CY SK GR UK DE CZ SI 35 40 NL 45 IT HU BE FI p95/p5, SILC 6 8 PT FR 50 55 FR SE 50 55 BG EE ES CY SI CZ SK 35 GR UK PL IT DE IE LU DK SE 45 DK PT LT AT 4 Mean distance from the median .3 .4 .5 .6 .7 .8 BG 60 PT ES EE Poverty rate, SILC 20 30 40 50 MT LV LT RO 20 Gini, Eurostat 2009 25 30 35 40 Government expenditure, Total, % of GDP, 2007 40 FR BE NL FI AT HU DK SE 45 50 55 14.14.table and15.15. shows the logit where the government spending table and tabletable shows the logit models, wheremodels, the government spending and the government spending and the government spending on social protection is included. Since there were no substantial on social protection is included. Since there were no substantial differences between the results of the logit, the 2 differences between the results of the logit, the 2 step and the hierarchical estimations I show step and the hierarchical estimations I show only the results from the logit regression for the tests of hypothesis 3.2 only the results from the logit regression for the tests of hypothesis 3.2 It is apparent that government spending has a not very strong but positive effect on turnout, ceteris paribus It is apparent that government spending has a not very strong but positive effect on turnout, individual and other country level factors. If we accept that the size of government spending proxies welfare state ceteris paribus individual and other country level factors. If we accept that the size of entrenchment well, we can conclude that universal welfare states tend to foster voter turnout. However, the point government spending proxies welfare state entrenchment well, we can conclude that estimates of the different inequality measures did not change significantly after including government spending.3 universal welfare states tend to foster voter turnout. However, the point estimates of the different inequality measures did not change significantly after including government 3 All 2 Results from the 2 indicators, step and hierarchical estimations were, again, almost – and could be requested from the author. but lost spending. but the Gini from theidentical Eurostat, remained negative 3 Only the p95/p5, LIS inequality indicator became significant but stayed negative after controlling for government spending on social protection (but controlling for the total spending did not have his effect), this is probably due to some outlier or high leverage case. a bit of significance, due probably to increased multicollinearity between the variables. Page • 26 From this I conclude that although welfare states tend to have higher voter turnout, it does not seem to be the omitted variable that would explain the effect of inequality on turnout. Income inequality and voter turnout All indicators, but the Gini from the Eurostat, remained negative but lost a bit of significance, due probably to increased multicollinearity between the variables. From this I conclude that although welfare states tend to have higher voter turnout, it does not seem to be the 8.figure–governmentexpenditureonsocialprotectionvs.incomeinequality omitted variable that would explain the effect of inequality on turnout. 8.figure–governmentexpenditureonsocialprotectionvs.incomeinequality expenditure, Social prot, 8. figureGovernment – government expenditure on social protection vs. income inequality % of GDP, 2007 60 LT RO IE CY EE SK IE CY SK 5 10 5 10 PovertyPoverty rate, SILC rate, SILC 2010 3020 4030 5040 6050 LV EE PT BG ESMT UK PL GR IT PT FR LU DE GR NL DK UK PL BEIT AT FI SE HU FR LU DE SI NL DK BE FI AT SE HU BG ES CZ CZ 15 SI 20 25 15 20 25 10 10 ROLT LV RO LT SK LV RO LT EE CY IE SK EE CY IE 5 10 5 p95/p5,p95/p5, SILC SILC 46 68 810 PT LV IE LT EE CY IE LV SK EE CY GR UK PT PL HUIT LU BE GR DE FI FR UK ES CZ ES SK 5 10 5 10 CZ AT PL SI NL HUIT LU BE DK DE SE FI FR 15 SINL 20AT 15 20 SE DK 25 25 BG LV PL PL HU GR PTIT BE FR SI HU LU FIDE DK NL GRAT SE PT ES UK BEIT CZMT SI FR DE DK AT 15 LUNL 20FI SE ES CZMT 10RO UK 15 LV LT 20 25 25 BG RO LT EE LT IE CY EE SK IE CY 5 10 5 10 4 Mean distance Mean distance from thefrom median the median .3 .4 .3 .5 .4 .6 .5 .7 .6 .8 .7 .8 20 Gini, Eurostat Gini, Eurostat 2009 2009 25 20 30 25 35 30 40 35 40 Government expenditure, Social prot, % ofBGGDP, 2007 MT LV SK PT BG GR IT PT ES UK PL ES GR UK LU PL IT FR BE AT HU FI NL SI DE SE DK CZ CZ 15 LU DE 20AT FI BE HU SINL 15 FR SE DK 20 25 25 9.figure–Governmentexpenditurevs.predictedturnout 9. figure – Government expenditure vs. predicted turnout 55 HU 15 BG PL CZ LU UK 10 LT BG 10 LT PT SK CZ EERO BEMT ES SI NL MT ES IE CY LV SK EERO IE CY 5 LV .8 .9 voter turnout, pred. pr. 1 .7 .8 .9 voter turnout, pred. pr. 1 Conclusionandfurthercomments 55 50 50 IT FI HU PT UK PL BG PL BG PT CZ CZ .7 LT .7 SI LU CY MT ES IE SK .8 .9 RO LU voterLV turnout, pred. pr. IE EE CY NLMT DE GR SI ES EE BE AT DK NL BE AT IT FIDE GR UK RO LV LT 35 .7 SE FR 45 LU UK DE BE FI AT NL SI GR IT HU 45 15 PL PT DK SE 40 20 HU IT AT GR DK 40 20 DE FI FR SE FR 35 DK SE Governmen G to eve xprn en m de itu ntre e,xp To eta nd l,itu % re o,fT G oD taP l,,% 20o 0f7GDP, 2007 25 FR 5 Governmen G to eve xprn en m de itu ntre e,xp So ecia nditu l pre ro,t,S% ocia oflG pD roP t,,% 20o 0f7GDP, 2007 25 9.figure–Governmentexpenditurevs.predictedturnout 1 SK .8 .9 voter turnout, pred. pr. 1 The paper addressed the issue of the effect of inequality on voter turnout. Using the 2009 Conclusionandfurthercomments PIREDEU European Election Study dataset I tested three different hypotheses. These Page • 27 The paper addressed the issue of the effect of inequality on voter turnout. Using the 2009 hypotheses were derived from previous literature. The analyses could show that inequality PIREDEU European Election Study dataset I tested three different hypotheses. These Daniel Horn Page • 28 Income inequality and voter turnout 4. Conclusion and further comments The paper addressed the issue of the effect of inequality on voter turnout. Using the 2009 PIREDEU European Election Study dataset I tested three different hypotheses. These hypotheses were derived from previous literature. The analyses could show that inequality associates negatively with turnout at the national elections (hypothesis 1). 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). None of these were really supported by the data. Although none of the hypotheses were refuted, I did not find significant association of the interaction effect of the individual income with inequality – i.e. income associates similarly with turnout in different inequality countries. Similarly, it seems that universal welfare states have a higher turnout, but this does not influence the association of inequality with turnout. 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 I have expected from the Downsian rational voter model. Page • 29 Daniel Horn Page • 30 Income inequality and voter turnout References Blais, André. 2006. “What Affects Voter Turnout?” SSRN eLibrary. Retrieved July 8, 2010. Downs, Anthony. 1957. An economic theory of voting. New York: Harper and Row. EES. 2010. “European Parlament Election Study 2009, Voter Study, Advance release.” van Egmond, Marcel H., Eliyahu V. Sapir, Wouter vad der Brug, Sara B. Hobolt, and Mark N. Franklin. 2010. “EES 2009 Voter Study Advance Release Notes.” Esping-Andersen, Gosta. 1990. The Three Worlds of Welfare Capitalism. Princeton, EUA : Princeton University Retrieved May 5, 2011. Ferejohn, John A., and Morris P. 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Geys, Benny. 2006b. “‘Rational’ Theories of Voter Turnout: A Review.” Political Studies Review 4(1):16-35. Retrieved July 7, 2010. Goodin, R. E., and K. W. S. Roberts. 1975. “The Ethical Voter.” The American Political Science Review 69(3):926928. Retrieved July 7, 2010. Grossman, Gene M., and Elhanan Helpman. 2002. Special interest politics. MIT Press. Kaniovski, Serguei, and Dennis C. Mueller. 2006. “Community Size, Heterogeneity and Voter Turnouts.” Public Choice 129(3/4):399-415. Retrieved July 8, 2010. Lancee, Bram, and Herman van de Werfhorst. 2011. “Income Inequality and Participation: A Comparison of 24 European Countries.” GINI Discussion paper 6. Ledyard, John O. 1984. “The Pure Theory of Large Two-Candidate Elections.” Public Choice 44(1):7-41. Retrieved July 7, 2010. Lijphart, Arend. 1997. “Unequal Participation: Democracy’s Unresolved Dilemma.” The American Political Science Review 91(1):1-14. Retrieved July 8, 2010. 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Palfrey, Thomas R., and Howard Rosenthal. 1983. “A Strategic Calculus of Voting.” Public Choice 41(1):7-53. Retrieved July 7, 2010. Palfrey, Thomas R., and Howard Rosenthal. 1985. “Voter Participation and Strategic Uncertainty.” The American Political Science Review 79(1):62-78. Retrieved July 7, 2010. Riker, William H., and Peter C. Ordeshook. 1968. “A Theory of the Calculus of Voting.” The American Political Science Review 62(1):25-42. Retrieved July 7, 2010. Schattschneider, Elmer Eric. 1960. The Semisovereign People: A Realist’s View of Democracy in America. Solt, Frederick. 2010. “Does Economic Inequality Depress Electoral Participation? Testing the Schattschneider Hypothesis.” Political Behavior 32(2):285-301. Retrieved January 12, 2011. SSO. 2009. “Annual Monitoring Report 2009, Social Situation Observatory.” Tóth, István György, and Tamás Keller. 2011. “Income Distributions, Inequality Perceptions and Redistributive Claims in European Societies.” GINI Discussion paper 7. Uhlaner, Carole J. 1989. “Rational Turnout: The Neglected Role of Groups.” American Journal of Political Science 33(2):390-422. Retrieved July 8, 2010. Yamamura, Eiji. 2009. “Effects of social norms and fractionalization on voting behaviour in Japan.” Applied Economics. Retrieved July 9, 2010. Page • 32 Income inequality and voter turnout Appendix 2. table – indicators of overall iunequality Gini Gini Earning cnt Gini coeffi- Gini of gross cient, Euroearnings in stat 2009 cash for full(source:SILC) time workers, SSO (Source: SILC) AUSTRIA BELGIUM BULGARIA CYPRUS CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY LATVIA LITHUANIA LUXEMBOURG MALTA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK 25,7 26,4 33,4 28,4 25,1 27,0 31,4 25,9 29,8 29,1 33,1 24,7 28,8 31,5 37,4 35,5 29,2 37,8 27,2 31,4 35,4 34,9 24,8 22,7 32,3 24,8 32,4 0,321 0,248 0,331 0,315 0,264 0,256 0,319 0,275 s80/s20 MDMI Poverty rate p95/p5, LIS p95/p5, SILC s80/s20, Mean Distance Population p95/p5, LIS p95/p5, SILC SSO 2009 from the meat risk of (Tóth-Keller 2007-2008 (Source: dian (Lancee- poverty or 2011) (Medgyesi) SILC) v.d.Werfhorts social exclu2011) sion, Eurostat 2005 (Romania 2007, Bulgarian 2006) 3,658 3,893 6,459 4,072 3,395 3,425 4,869 3,709 0,330 0,318 0,322 0,334 0,284 0,384 0,347 0,342 4,540 5,370 3,557 4,395 4,887 7,058 5,658 3,904 0,309 0,348 0,377 0,295 0,250 0,301 0,293 0,305 0,371 3,739 5,014 6,076 6,966 3,309 3,262 4,926 3,321 5,346 16,8 22,6 61,3 25,3 19,6 17,2 25,9 17,2 18,9 18,4 29,4 32,1 25,0 25,0 45,8 41,0 17,3 20,6 16,7 45,3 26,1 45,9 32,0 18,5 23,4 14,4 24,8 16,8 22,6 61,3 25,3 19,6 17,2 25,9 17,2 18,9 18,4 29,4 32,1 25,0 25,0 45,8 41,0 17,3 20,6 16,7 45,3 26,1 45,9 32,0 18,5 23,4 14,4 24,8 4,8 4,9 3,6 7,9 4,2 5,2 7,1 5,8 5,9 7,4 5,0 3,8 6,6 4,8 6,9 3,9 6,7 4,4 4,5 9,1 4,9 4,1 3,8 6,1 4,3 4,5 5,6 6,7 4,3 5,1 6,3 9,5 7,0 4,9 4,2 6,4 7,7 10,0 4,0 4,1 6,5 3,9 6,6 Page • 33 Daniel Horn 3. table – indicators of inequality above and below the median MDMI, above p95/p50, LIS p95/p50, SILC MDMI, below p50/p5, LIS cnt MDMI, above the p95/p50, LIS p95/p50, SILC MDMI, below the p50/p5, LIS median (Lancee(Tóth-Keller (Medgyesi) median (Lancee- (Tóth-Keller v.d.Werfhorts 2011) v.d.Werfhorts 2011) 2011) 2011) 0,47 2,19 2,122 -0,27 2,2 AUSTRIA 0,55 2,11 2,027 -0,31 2,3 BELGIUM 2,855 BULGARIA 0,65 2,174 -0,29 CYPRUS 0,51 2,070 -0,22 CZECH REPUBLIC 0,38 1,78 1,839 -0,24 2,04 DENMARK 0,71 2,94 2,394 -0,31 2,69 ESTONIA 0,55 1,97 2,035 -0,28 2,12 FINLAND 0,55 2,101 -0,29 FRANCE 0,58 2,24 2,296 -0,29 2,34 GERMANY 0,79 2,56 2,469 -0,36 2,77 GREECE 0,67 2,44 2,012 -0,31 2,37 HUNGARY 0,84 2,21 2,269 -0,3 2,67 IRELAND 0,63 2,53 2,328 -0,34 2,91 ITALY 2011,01,06 2,945 -0,36 LATVIA 0,78 2,574 -0,33 LITHUANIA 0,64 2,24 2,255 -0,33 2,24 LUXEMBOURG MALTA 0,46 1,89 2,153 -0,24 1,99 NETHERLANDS 0,67 2,49 2,554 -0,35 2,66 POLAND 0,95 2,971 -0,34 PORTUGAL 2,719 ROMANIA 0,57 1,926 -0,26 SLOVAKIA 0,43 2,01 1,919 -0,25 2,38 SLOVENIA 0,65 2,38 2,340 -0,36 2,9 SPAIN 0,38 1,89 1,848 -0,27 2,05 SWEDEN 0,72 2,7 2,546 -0,34 2,49 UK Page • 34 p50/p5, SILC p50/p5, SILC (Medgyesi) 2,054 2,215 3,174 2,254 1,962 2,068 2,557 2,115 2,156 2,436 2,697 2,137 2,255 2,721 3,215 2,736 2,163 1,956 2,512 2,602 3,661 2,086 2,129 2,784 2,130 2,595 Income inequality and voter turnout 4. table - – country level indicators 1 cnt Multiple (concurrent) Compulsory Threshold voting elections AUSTRIA BELGIUM BULGARIA CYPRUS CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY LATVIA LITHUANIA LUXEMBOURG MALTA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 1 1 0 0 0 1 0 0 1 0 0 1 0 Elect. System: Presidential Proportional system (0) vs. plurality (5) 3 3 3 3 3 3 3 3 1 4 3 4 5 3 3 2 3 5 3 3 3 4 3 3 3 3 0 3 0 3 1 0 0 0 0 2 0 0 0 3 0 0 3 0 0 0 3 3 3 0 3 0 0 0 Federalism 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Source: European Election Study/Piredeu 2009 Page • 35 Daniel Horn 5. table – country level indicators 2 cnt Years from national election (own research) AUSTRIA BELGIUM BULGARIA CYPRUS CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY LATVIA LITHUANIA LUXEMBOURG MALTA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK Total population, 2008 GDP, per capita, % of EU 27 (Eurostat ) Government expenditure, Total, % of GDP, 2007 3,25 8318592 124 1,00 10666866 116 0,08 7640238 44 1,92 789269 98 0,92 10381130 82 2,42 5475791 121 1,75 1340935 64 1,83 5300484 113 0,30 63982881 108 0,42 82217837 116 0,75 11213785 93 0,83 10045401 65 1,92 4401335 127 2,84 59619290 104 1,33 2270894 52 3,00 3366357 55 0,00 483799 271 2,75 410290 81 1,00 16405399 131 2,42 38115641 61 0,42 10617575 80 3,42 21528627 46 1,00 5400998 73 3,34 2010269 88 2,75 45283259 103 1,25 9182927 118 0,92 61179256 112 Source: European Election Study/Piredeu 2009, unless otherwise noted Page • 36 48,4 48,4 41,5 42,9 42,6 51 34,7 47,3 52,3 44,1 44,1 49,9 35,6 47,9 35,9 35 36,2 42,2 45,5 41,9 45,8 36,3 34,6 42,3 38,7 52,5 44,4 Government expenditure, Social protection, % of GDP, 2007 19,9 17,1 13,1 9,9 12,9 21,7 9,6 19,9 22,2 20,3 18,7 17,4 10,1 18,2 8,4 11 15,3 13,8 16 15,6 17,5 9,8 10,6 15,5 13 21,6 15,3 Income inequality and voter turnout 10.figure–VoterturnoutinEuropeancountries 10.figure–VoterturnoutinEuropeancountries 40 40 60 60 80 100 80 100 40 40 60 60 80 100 80 100 40 40 60 60 80 100 80 100 40 40 60 60 80 100 80 100 40 40 60 60 80 100 80 100 Voter Voter turnout, turnout, parlamentary parlamentary elections elections 10. figure – Voter turnout in European countries Austria Bulgaria Czech Republic Denmark Estonia Finland Austria Bulgaria Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy France Germany Greece Hungary Ireland Italy Latvia Liechtenstein Lithuania Malta Netherlands Norway Latvia Liechtenstein Lithuania Malta Netherlands Norway Poland Portugal Romania Slovakia Slovenia Spain Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland United Kingdom Sweden Switzerland United Kingdom 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 Year Year 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 1940 1960 1980 2000 2020 Source:IDEA Source:IDEA Gini Gini 20 25 20 30 25 35 30 40 35 40 20 25 20 30 25 35 30 40 35 40 20 25 20 30 25 35 30 40 35 40 20 25 20 30 25 35 30 40 35 40 20 25 20 30 25 35 30 40 35 40 11.figure–incomeGinicoefficientofEuropeancountries 11. figure – income Gini coefficient of European countries 11.figure–incomeGinicoefficientofEuropeancountries AUSTRIA BELGIUM BULGARIA CYPRUS CZECH REPUBLIC DENMARK AUSTRIA BELGIUM BULGARIA CYPRUS CZECH REPUBLIC DENMARK ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY ESTONIA FINLAND FRANCE GERMANY GREECE HUNGARY IRELAND ITALY LATVIA LITHUANIA LUXEMBOURG MALTA IRELAND ITALY LATVIA LITHUANIA LUXEMBOURG MALTA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA NETHERLANDS POLAND PORTUGAL ROMANIA SLOVAKIA SLOVENIA SPAIN SWEDEN UK SPAIN SWEDEN UK 1995 2000 2005 2010 1995 2000 2005 2010 1995 2000 2005 1995 2000 2005 2010 1995 2000 2005 2010 1995 2000 2005 Source:Eurostat Source:Eurostat 1995 2000 2005 2010 1995 2000 2005 2010 1995 2000 2005 2010 1995 2000 2005 2010 1995 2000 2005 2010 1995 2000 2005 2010 2010 2010 year year 27 27 Page • 37 Daniel Horn 6. table – Logit Base model (ORs) VARIABLES Age Age squared Female Age when finished education Subjective standard of living (within country Z-score) Compulsory voting Multiple (concurrent) elections Population Threshold Elect. System: Proportional (0) vs. plurality (5) Presidential Federalism Years from national election % of other nationalities GDP per capita, % of EU27 Constant Observations Odds ratios, robust clustered se in parentheses, ** p<0.01, * p<0.05, + p<0.1 Page • 38 (1) vote=1 1.089** (0.0124) 1.000** (0.000120) 1.040 (0.0629) 1.056** (0.0149) 1.196** (0.0320) 1.308 (0.284) 0.731 (0.583) 1.000 (4.21e-09) 0.500** (0.128) 1.053 (0.0913) 0.847* (0.0680) 1.772* (0.427) 1.076 (0.0761) 0.970+ (0.0173) 1.004 (0.00522) 0.142* (0.112) 20,202 Income inequality and voter turnout 7. table – Different measures of income inequality on turnout, logit (ORs) (1) (2) (3) (4) VARIABLES vote vote vote vote Subjective standard of living 1.194** 1.186** 1.203** 1.201** (within country Z-score) (0.0315) (0.0316) (0.0347) (0.0338) Gini, Eurostat 2009 1.017 s80/s20, SSO 2009 (5) (6) (7) vote vote vote 1.198** (0.0318) 1.204** (0.0430) 1.190** (0.0318) (0.0268) 1.041 (0.170) Gini, earning, SSO 2009 0.982* (0.00702) Mean distance from the median 0.218+ (0.180) Poverty rate, SILC 0.976+ (0.0129) p95/p5, LIS 0.751 (0.338) p95/p5, SILC Constant Observations 0.0852* (0.105) 20,202 0.138+ (0.147) 18,964 0.249 (0.215) 20,202 0.181+ (0.177) 18,112 0.251 (0.218) 20,202 0.861 (1.581) 12,979 0.942 (0.0816) 0.157+ (0.157) 19,603 Robust seeform in parentheses ** p<0.01, * p<0.05, + p<0.1 8. table – Different measures of income inequality on turnout, 2 step (1) (2) (3) (4) (5) VARIABLES Predicted probabiliya, 2nd step Gini, Eurostat 2009 0.000854 s80/s20, SSO 2009 0.00224 (0.0332) -0.00174 (0.00168) Mean distance from the median -0.338 (0.217) Poverty rate, SILC -0.00608* (0.00265) p95/p5, LIS -0.0400 (0.0711) p95/p5, SILC Observations R-squared (7) (0.00541) Gini, earning, SSO 2009 Constant (6) 0.792** (0.192) 0.831** (0.170) 0.864** (0.137) 0.875** (0.136) 0.943** (0.127) 1.024* (0.376) -0.00779 (0.0167) 0.849** (0.153) 27 0.575 25 0.602 27 0.603 24 0.648 27 0.685 17 0.627 26 0.587 Standard errors in parentheses, a – for a 40 year old average income men, who finished education at age 18 ** p<0.01, * p<0.05, + p<0.1 Page • 39 Daniel Horn 9. table – Different measures of income inequality on turnout, hierarchical logit (ORs) (1) (2) (3) (4) (5) VARIABLES Vote Vote Vote Vote Vote Gini, Eurostat 2009 1.007 s80/s20, SSO 2009 0.944 (0.165) 0.979+ (0.0121) Mean distance from the median 0.0943+ (0.114) Poverty rate, SILC 0.964* (0.0141) p95/p5, LIS 0.713 (0.291) p95/p5, SILC Random effects parameters sd(Constant) Observations Number of groups seEform in parentheses ** p<0.01, * p<0.05, + p<0.1 Page • 40 (7) Vote (0.0346) Gini, earning, SSO 2009 Constant (6) Vote 0.166 (0.207) 0.272 (0.262) 0.380 (0.327) 0.306 (0.273) 0.501 (0.415) 0.986 (2.091) 0.895 (0.0803) 0.300 (0.265) 0.529** (0.0795) 20,202 27 0.507** (0.0799) 18,964 25 0.499** (0.0758) 20,202 27 0.474** (0.0770) 18,112 24 0.473** (0.0718) 20,202 27 0.458** (0.0911) 19,603 26 0.499** (0.0774) 19,603 26 Income inequality and voter turnout 10. table – Income bias, logit (ORs) (1) VARIABLES vote Subjective standard of living 1.029 (within country Z-score) (0.130) Gini, Eurostat 2009 1.018 * standard of living s80/s20, SSO 2009 (0.0269) 1.005 (0.00428) * standard of living Gini, earning, SSO 2009 (2) (3) (4) (5) (6) (7) vote vote vote vote vote vote 0.773 (0.122) 1.042 (0.170) 1.006 (0.0188) * standard of living Mean distance from the median 1.011 (0.157) 0.982* (0.00726) 0.998 (0.00236) * standard of living Poverty rate, SILC 1.118 (0.0987) 0.222+ (0.184) 1.155 (0.202) * standard of living p95/p5, LIS 1.223* (0.0986) 0.976+ (0.0129) 0.999 (0.00256) * standard of living p95/p5, SILC 1.239 (0.189) 0.750 (0.338) 0.995 (0.0252) 1.182 (0.186) Constant 0.0833* (0.103) 0.137+ (0.146) 0.251 (0.218) 0.179+ (0.175) 0.252 (0.219) 0.866 (1.593) 0.942 (0.0819) 1.001 (0.0125) 0.156+ (0.158) Observations 20,202 18,964 20,202 18,112 20,202 12,979 19,603 * standard of living Robust seeform in parentheses ** p<0.01, * p<0.05, + p<0.1 Page • 41 Daniel Horn 11. table – income bias, hierarchical logit (ORs) (1) (3) VARIABLES vote vote Subjective standard of living (within country Z-score) 1.057 0.775 Gini, Eurostat 2009 * standard of living s80/s20, SSO 2009 (0.176) 1.008 (0.0346) 1.005 (0.00545) (0.194) (5) (7) (9) (11) (13) vote vote vote vote vote 1.046 (0.207) 1.147 (0.136) 1.274** (0.0772) 1.231 (0.190) 1.228** (0.0945) 0.944 (0.166) 1.003 (0.0189) * standard of living Gini, earning, SSO 2009 0.979+ (0.0121) 0.998 (0.00316) * standard of living Mean distance from the median 0.0959+ (0.116) 1.139 (0.265) * standard of living Poverty rate, SILC 0.964* (0.0141) 0.999 (0.00179) * standard of living p95/p5, LIS 0.713 (0.291) 0.999 (0.0251) * standard of living p95/p5, SILC 0.162 (0.202) 0.271 (0.261) 0.385 (0.331) 0.303 (0.270) 0.505 (0.418) 0.988 (2.095) 0.895 (0.0803) 0.998 (0.0120) 0.300 (0.265) 0.529** (0.0795) 20,202 27 0.507** (0.0799) 18,964 25 0.499** (0.0758) 20,202 27 0.474** (0.0769) 18,112 24 0.474** (0.0719) 20,202 27 0.458** (0.0911) 12,979 17 0.499** (0.0774) 19,603 26 * standard of living Constant Random effects parameters Observations Number of groups seEform in parentheses ** p<0.01, * p<0.05, + p<0.1 Page • 42 Income inequality and voter turnout 12. table - Different measures of income inequality below and above the median on turnout, logit (ORs) (1) (2) (3) (4) (5) vote vote vote vote vote VARIABLES MDMI, below the mean 2.357 p50/p5, LIS (6) vote (7.290) 17.76** (17.43) p50/p5, SILC 0.880 (0.342) MDMI, above the median 0.466 (0.409) p95/p50, LIS 0.102+ (0.134) p95/p50, SILC Constant 0.108+ (0.142) 0.000592** (0.00119) 0.160 (0.229) 0.108* (0.0977) 27.45 (74.54) 0.550+ (0.191) 0.382 (0.467) Observations Robust seeform in parentheses ** p<0.01, * p<0.05, + p<0.1 18,112 12,979 19,603 18,112 12,979 19,603 13. table – Income bias, below and above the median, logit (ORs) (1) (2) VARIABLES vote vote Subjective standard of living (within country Z-score) 1.006 1.271 MDMI, below median * standard of living p50/p5, LIS (0.162) 2.174 (6.760) 0.566 (0.315) * standard of living p50/p5, SILC (0.432) 17.66** (17.83) 0.980 (0.138) * standard of living MDMI, above the median (3) (4) (5) (6) vote vote vote vote 1.195 (0.156) 1.160* (0.0846) 1.198 (0.267) 1.102 (0.174) 0.880 (0.344) 0.998 (0.0520) * standard of living p95/p50, LIS 0.469 (0.412) 1.051 (0.108) * standard of living p95/p50, SILC 0.102+ (0.134) 1.004 (0.0900) Constant 0.105+ (0.140) 0.000600** (0.00124) 0.160 (0.230) 0.108* (0.0971) 27.40 (74.71) 0.552+ (0.193) 1.035 (0.0715) 0.378 (0.465) Observations 18,112 12,979 19,603 18,112 12,979 19,603 * standard of living Robust seeform in parentheses ** p<0.01, * p<0.05, + p<0.1 Page • 43 Daniel Horn 14. table – welfare state test 1 – logit (ORs) (1) VARIABLES vote Government expenditure, Total, % of GDP, 2007 1.075* Gini, Eurostat 2009 s80/s20, SSO 2009 (0.0345) 1.023 (0.0258) (2) (3) (4) (5) (6) (7) vote vote vote vote vote vote 1.067* (0.0343) 1.070* (0.0319) 1.059+ (0.0360) 1.065+ (0.0353) 1.098+ (0.0592) 1.068* (0.0330) 0.981 (0.133) Gini, earning, SSO 2009 0.986+ (0.00832) Mean distance from the median 0.551 (0.576) Poverty rate, SILC 0.986 (0.0131) p95/p5, LIS 0.990 (0.326) p95/p5, SILC Constant Observations Robust seeform in parentheses ** p<0.01, * p<0.05, + p<0.1 Page • 44 0.00259** 0.00695** (0.00507) (0.0126) 20,202 18,964 0.0101** (0.0164) 0.00850* (0.0174) 0.0113* (0.0208) 20,202 18,112 20,202 0.957 (0.0744) 0.000777* 0.00709** (0.00276) (0.0120) 12,979 19,603 Income inequality and voter turnout 15. table – welfare state test 2 - logit (1) VARIABLES vote Government expenditure, Social prot, % of GDP, 2007 1.104* Gini, Eurostat 2009 s80/s20, SSO 2009 (0.0515) 1.009 (0.0247) (2) (3) (4) (5) (6) (7) vote vote vote vote vote vote 1.108* (0.0541) 1.098+ (0.0539) 1.076 (0.0543) 1.091+ (0.0567) 3.773** (0.603) 1.101* (0.0511) 0.897 (0.128) Gini, earning, SSO 2009 0.986+ (0.00733) Mean distance from the median 0.300 (0.252) Poverty rate, SILC 0.983 (0.0130) p95/p5, LIS 0.106** (0.0387) p95/p5, SILC Constant Observations Robust seeform in parentheses ** p<0.01, * p<0.05, + p<0.1 0.0241** (0.0314) 0.0351** (0.0425) 0.0538** (0.0599) 0.0528* (0.0698) 0.0572* (0.0726) 20,202 18,964 20,202 18,112 20,202 0.931 (0.0754) 1.51e-10** 0.0385** (4.13e-10) (0.0444) 12,979 19,603 Page • 45 Daniel Horn Page • 46 Income inequality and voter turnout GINI Discussion Papers Recent publications of GINI. They can be downloaded from the website www.gini-research.org under the subject Papers. DP 15 Can higher employment levels bring down poverty in the EU? Ive Marx, Pieter Vandenbroucke and Gerlinde Verbist October 2011 DP 14 Inequality and Anti-globalization Backlash by Political Parties Brian Burgoon October 2011 DP 13 The Social Stratification of Social Risks. Class and Responsibility in the ‘New’ Welfare State Olivier Pintelon, Bea Cantillon, Karel Van den Bosch and Christopher T. Whelan September 2011 DP 12 Factor Components of Inequality. A Cross-Country Study Cecilia García-Peñalosa and Elsa Orgiazzi July 2011 DP 11 An Analysis of Generational Equity over Recent Decades in the OECD and UK Jonathan Bradshaw and John Holmes July 2011 DP 10Whe Reaps the Benefits? The Social Distribution of Public Childcare in Sweden and Flanders Wim van Lancker and Joris Ghysels June 2011 DP 9 Comparable Indicators of Inequality Across Countries (Position Paper) Brian Nolan, Ive Marx and Wiemer Salverda March 2011 DP 8The Ideological and Political Roots of American Inequality John E. Roemer March 2011 DP 7 Income distributions, inequality perceptions and redistributive claims in European societies István György Tóth and Tamás Keller February 2011 DP 6 Income Inequality and Participation: A Comparison of 24 European Countries + Appendix Bram Lancee and Herman van de Werfhorst January 2011 DP 5 Household Joblessness and Its Impact on Poverty and Deprivation in Europe Marloes de Graaf-Zijl January 2011 DP 4 Inequality Decompositions - A Reconciliation Frank A. Cowell and Carlo V. Fiorio December 2010 DP 3 A New Dataset of Educational Inequality Elena Meschi and Francesco Scervini December 2010 Page • 47 Daniel Horn DP 2 Are European Social Safety Nets Tight Enough? Coverage and Adequacy of Minimum Income Schemes in 14 EU Countries Francesco Figari, Manos Matsaganis and Holly Sutherland June 2011 DP 1 Distributional Consequences of Labor Demand Adjustments to a Downturn. A Model-based Approach with Application to Germany 2008-09 Olivier Bargain, Herwig Immervoll, Andreas Peichl and Sebastian Siegloch September 2010 Page • 48 Income inequality and voter turnout Information on the GINI project Aims The core objective of GINI is to deliver important new answers to questions of great interest to European societies: What are the social, cultural and political impacts that increasing inequalities in income, wealth and education may have? For the answers, GINI combines an interdisciplinary analysis that draws on economics, sociology, political science and health studies, with improved methodologies, uniform measurement, wide country coverage, a clear policy dimension and broad dissemination. Methodologically, GINI aims to: ●● exploit differences between and within 29 countries in inequality levels and trends for understanding the impacts and teasing out implications for policy and institutions, ●● elaborate on the effects of both individual distributional positions and aggregate inequalities, and ●● allow for feedback from impacts to inequality in a two-way causality approach. The project operates in a framework of policy-oriented debate and international comparisons across all EU countries (except Cyprus and Malta), the USA, Japan, Canada and Australia. Inequality Impacts and Analysis Social impacts of inequality include educational access and achievement, individual employment opportunities and labour market behaviour, household joblessness, living standards and deprivation, family and household formation/breakdown, housing and intergenerational social mobility, individual health and life expectancy, and social cohesion versus polarisation. Underlying long-term trends, the economic cycle and the current financial and economic crisis will be incorporated. Politico-cultural impacts investigated are: Do increasing income/educational inequalities widen cultural and political ‘distances’, alienating people from politics, globalisation and European integration? Do they affect individuals’ participation and general social trust? Is acceptance of inequality and policies of redistribution affected by inequality itself ? What effects do political systems (coalitions/winner-takes-all) have? Finally, it focuses on costs and benefi ts of policies limiting income inequality and its effi ciency for mitigating other inequalities (health, housing, education and opportunity), and addresses the question what contributions policy making itself may have made to the growth of inequalities. Support and Activities The project receives EU research support to the amount of Euro 2.7 million. The work will result in four main reports and a final report, some 70 discussion papers and 29 country reports. The start of the project is 1 February 2010 for a three-year period. Detailed information can be found on the website. www.gini-research.org Page • 49 Amsterdam Institute for Advanced labour Studies University of Amsterdam Plantage Muidergracht 12 ● 1018 TV Amsterdam ● The Netherlands Tel +31 20 525 4199 ● Fax +31 20 525 4301 [email protected] ● www.gini-research.org Project funded under the Socio-Economic sciences and Humanities theme. Income inequality and voter turnout Page • 51 Amsterdam Institute for Advanced labour Studies University of Amsterdam Plantage Muidergracht 12 ● 1018 TV Amsterdam ● The Netherlands Tel +31 20 525 4199 ● Fax +31 20 525 4301 [email protected] ● www.gini-research.org Project funded under the Socio-Economic sciences and Humanities theme. Income inequality and voter turnout Page • 53
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