Why Inequalities Persist: Parties' (Non)Responses to Economic Inequality, 1970-2020

Abstract

Do parties respond to inequality? Despite the relevance of inequality and its consequences, existing studies fail to capture parties' emphasis on economic equality and redistribution or to differentiate between existing levels of inequality and increases in inequality. Based on 850,000 party statements from 12 (Organisation for Economic Co-operation and Development) countries (1970-2020), we introduce a crowd-coded dataset that allows us to distinguish positive references to economic equality and redistribution from upward-trending equal-rights/anti-discrimination rhetoric. We show that responses found in previous studies do not capture economic equality and redistribution. In reassessing the impact of inequality, we argue that low visibility, status quo bias, and turnout effects discourage party responses to high inequality levels, while rising inequality poses a visible status quo change and a threat that left parties respond to. We find that left parties respond to inequality increases (except less tangible gains among the most affluent) but not to (high) inequality levels. This helps to understand why inequality is not self-correcting.