This paper advances research on inequality with unique, new data on income distribution in 61 countries, including 20 Latin American countries, to explore the effects of political parties on redistribution. First, consistent with a central -- but still contested -- assumption of the political economy literature, left-wing governments redistribute more. In addition, consistent with recent research on the importance of party organization and the organizational differences between younger and older parties, older left-wing parties are more likely to internalize the long-run costs of redistribution and to be more credible in their commitment to redistribution, leading them to redistribute less. With entirely different data, the paper also provides evidence on mechanisms: left-wing governments not only redistribute more, they tax more; older left-wing parties, though, tax less than younger ones.
Details
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Author
Keefer, Philip Milanovic, Branko
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Document Date
2014/12/01
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Document Type
Policy Research Working Paper
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Report Number
WPS7129
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2014/12/01
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Disclosure Status
Disclosed
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Doc Name
Party age and party color : new results on the political economy of redistribution and inequality
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Keywords
market income;gross income;disposable income;Macroeconomics & Growth;Macroeconomics and Growth;middle class income share;information on income distribution;country fixed effect;change in income;government fiscal policy;data on income;costs of taxation;
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Citation
Keefer, Philip Milanovic, Branko
Party age and party color : new results on the political economy of redistribution and inequality (English). Policy Research working paper ; no. WPS 7129 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/710631468133191009/Party-age-and-party-color-new-results-on-the-political-economy-of-redistribution-and-inequality