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1. Power, Markets, and Top Income Shares

Author:
Evelyne Huber, Huo Jingjing, and John D. Stephens
Publication Date:
04-2015
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
The rise of the super-rich has attracted much political and academic attention in recent years. However, to date there have been few attempts to explain the cross-national variation in the recent rise of very top incomes. Drawing on the World Top Incomes Database, we study the income share of the top 1% in almost all current postindustrial democracies from 1975 to 2012. We find that extreme income concentration at the very top is a predominantly political phenomenon, not the outcome of economic changes. Top income shares are largely unrelated to economic growth, increased knowledge-intensive production, export competitiveness, market size, financialization, and wealth accumulation. Instead, they are driven by various political and policy changes that reflect a decline in the relative power and resources of labor, such as union density and centralization, secular-right governments, and cuts in top marginal income tax rates as well as in public spending on education.
Topic:
Economics, Industrial Policy, Political Economy, and Social Stratification

2. Rethinking the Comparative Perspective on Class and Representation: Evidence from Latin America

Author:
Nicholas Carnes and Noam Lupu
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Does it matter that working-class citizens are numerically underrepresented in political offices throughout the world? For decades, the conventional wisdom in comparative politics has been that it does not, that lawmakers from different classes think and behave roughly the same in office. In this paper, we argue that this conclusion is misguided. Past research relied on inappropriate measures of officeholders' class backgrounds, attitudes, and choices. Using data on 18 Latin American legislatures, we show that lawmakers from different classes bring different economic attitudes to the legislative process. And using data on one least-likely case, we show that pre-voting decisions like sponsoring legislation often differ dramatically along social class lines, even when political parties control higher-visibility decisions like roll-call votes. The unequal numerical or descriptive representation of social classes in the world's legislatures has important consequences for the substantive representation of different class interests.
Topic:
Economics, Political Economy, Social Stratification, and Socialism/Marxism
Political Geography:
Latin America

3. The Road to Universal Social Protection: How Costa Rica Informs Theory Juliana

Author:
Juliana Martínez Franzoni and Diego Sánchez-Ancochea
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
How are universal social programs built in countries on the periphery, where resources are more limited and initial inequalities higher than any ever seen in OECD countries? Historically it has been very difficult, and even those countries that committed themselves to serious welfare efforts did so with stratified, rather than universal, transfers and services. Yet there have been some exceptions, and Costa Rica ranks among the most successful. The bottom-up expansion of social security, along income/class rather than occupational lines, was very important in the creation of a basic floor of benefits among the low and low-middle salaried population. Gradually, the middle and upper-middle groups were later on brought on board as well, in sharp contrast with the rest of the region where social insurance was shaped for and according to the preferences of various middle-class groups.
Topic:
Democratization, Economics, Poverty, Social Stratification, and Health Care Policy
Political Geography:
Latin America

4. Electoral Personalism and Economic Policy

Author:
Daniel Kselman
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
What effect do a country's electoral institutions have on its economic policy? While past research has emphasized the policy consequences of majoritarian as opposed to proportional electoral formulae, this paper emphasizes a country's ballot structure and, in particular, whether or not its electoral rules allow citizens to cast intraparty candidate votes. I first develop a theoretical framework that yields a set of original predictions linking intraparty voting rules to the incidence of political corruption, the emphasis on redistributive social policy, and the overall size of the state. Empirical tests then confirm that intraparty voting rules exert a significant and reductive effect on the incidence of political corruption but that they do not undermine the production of egalitarian fiscal policy. Taken together, the paper's theoretical and empirical results should contribute to broader normative debates about the viability of decentralized and personalistic forms of democratic accountability.
Topic:
Corruption, Democratization, Economics, and Social Stratification

5. Mining Water for the Revolution: Marte R. Gómez and the Business of Agrarian Reform in "La Laguna," Mexico, 1920s to 1960s

Author:
Mikael Wolfe
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
In this paper I examine the little explored historical relationship between advances in “ecotechnical” knowledge of Mexico's scarce and fragile water resources and the state developmental imperatives of agrarian reform from the 1920s to the 1960s. In particular, I focus on how this relationship played out in the Comarca Lagunera of north-central Mexico, which was the emblematic region of Cardenista agrarian reform in the 1930s. Drawing on primary documentation, technical journals, newspapers, and secondary sources, I argue that the key actor in this history, hydraulic engineer-agronomist and Secretary of Agriculture Marte R.Gómez, epitomized the contradictions among advances in scientific understanding of Mexico's hydrology, agricultural development, and business. I further contend that these contradictions were at the heart of Mexican agrarian reform and its long-term ecological as well as social and economic unsustainability.
Topic:
Agriculture, Economics, and Natural Resources
Political Geography:
Latin America and Mexico

6. Exit During Crisis: How Openness, Migration, and Economic Crisis Affect Democratization

Author:
Joseph Wright
Publication Date:
05-2010
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Does economic crisis lead to authoritarian regime breakdown and democratization? In this paper, I argue that the availability of exit options for citizens conditions the relationship between economic crisis and democratization. Where citizens have more viable exit alternatives, economic crisis causes citizens to exit rather than protest, making democratization less likely. I measure exit options in three ways: a geographic instrument for bilateral trade; neighboring country GDP per capita; and past net migration. I use time series, cross - section data on up to 122 authoritarian regimes in 114 countries from 1946 – 2002 to test this argument and find evidence consistent with the hypothesis that more attractive exit options insulate dictators from the liberalizing effects of economic crisis.
Topic:
Democratization, Economics, Government, Political Theory, Financial Crisis, and Authoritarianism

7. Mining Water for the Revolution: Marte R. Gómez and the Business of Agrarian Reform in "La Laguna," Mexico, 1920s to 1960s

Author:
Mikael Wolfe
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
In this paper I examine the little explored historical relationship between advances in “ecotechnical” knowledge of Mexico's scarce and fragile water resources and the state developmental imperatives of agrarian reform from the 1920s to the 1960s. In particular, I focus on how this relationship played out in the Comarca Lagunera of north-central Mexico, which was the emblematic region of Cardenista agrarian reform in the 1930s. Drawing on primary documentation, technical journals, newspapers, and secondary sources, I argue that the key actor in this history, hydraulic engineer-agronomist and Secretary of Agriculture Marte R. Gómez, epitomized the contradictions among advances in scientific understanding of Mexico's hydrology, agricultural development, and business. I further contend that these contradictions were at the heart of Mexican agrarian reform and its long-term ecological as well as social and economic unsustainability.
Topic:
Agriculture, Economics, Natural Resources, and Water
Political Geography:
Latin America and Mexico

8. Drugs, Civil War, and the Conditional Impact of the Economy on Democracy

Author:
Michael Coppedge, Angel Alvarez, and Lucas González
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Theorizing about the influence of modernization on democracy is once again in vogue. Nevertheless, this theme faces an important obstacle: the leverage of modernization hypotheses is generally modest. Key modernization variables, especially per capita GDP, almost always explain part of the variance in democracy, but rarely more than half. Also, as one can see in certain Latin American cases, economic growth sometimes has a negative impact on democracy. This paper argues that the impact of economic growth varies from country to country for systematic, not random, reasons. Using Hierarchical Linear Modeling (HLM) in a cross-regional sample of 108 countries from 1978 to 1999, the paper shows that it is crucial to distinguish between the short- term effect of per capita GDP growth within each country and the cross-national effect of long-term growth. A distinct causal mechanism is at work at each level of analysis. More precisely, the paper identifies four factors that condition the impact of economic growth on democracy: the existing political regime, the democratic experience of each country, the frequency of civil war, and the importance of drug trafficking in the domestic economy. Although other factors probably also condition the effect of the economy on democracy and democratization, the model used in this paper explains 82 percent of the variance in the sample, which is substantially greater than what is typically found in other studies of democratization. Consequently, this paper shows that it is necessary to continue to refine hypotheses about the conditional effect of the economy in order to improve conventional explanations of variation in levels of democracy, whether within one country or in comparative perspective.
Topic:
Economics, Government, and War on Drugs
Political Geography:
Latin America

9. Crony Capitalism and Democracy: Paradoxes of Electoracompetition in Russia's Regions

Author:
Gulnaz Sharafutdinova
Publication Date:
02-2007
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
The phenomenon of crony capitalism has been explored primarily with reference to its impact on economic growth. This study investigates the political implications of crony capitalism and, specifically, the interaction between political competition and crony capitalism. Based on a case study of political trajectories in two regions of the Russian Federation, I argue that under crony capitalism political competition can undermine the legitimacy of state authorities and such democratic institutions as the electoral mechanism. Played out in public during electoral campaigns, unrestricted political competition uncovers the predatory nature of crony elites engaged in struggle for power and wealth. Paradoxically, the electoral process itself gets discredited as an essential part of the overall institutional order in the process. Noncompetitive political systems avoid such negative tendencies, at least in the short run.
Topic:
Democratization and Economics
Political Geography:
Russia and Europe

10. Class Formation or Fragmentation? Allegiances and Divisions Among Managers and Workers in State-Owned Enterprises

Author:
Kun-Chin Lin
Publication Date:
03-2005
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This essay argues that crosscutting allegiances between managers and workers, and between existing workers and ex-workers, have formed strong social and psychological bases for sustained collective action and inaction during a period of organizational transformation in contemporary China. This thesis challenges the conventional wisdom that implies either class formation during marketization or the failure of such as an explanation for the alleged limits of the working class in mobilizing to defend its social contract against the central state. Through in-depth case studies of Chinese oilfields and refineries, I identify patterns of fragmentation deriving from intergenerational differences among the workers, managerial incentive structures, and the continuing reworking of patron-client relations between subgroups of workers and managers. I conclude that managers' and workers' passive and active responses to the state's rapid dismantling of the socialist notion of “class” in a self-sufficient work unit have placed a tangible social limit on authoritarian institutional innovation.
Topic:
Economics, Emerging Markets, and Government
Political Geography:
China