The Rich Have a Slight Edge: Evidence from Comparative Data on Income-Based Inequality in Policy Congruence

Abstract

Several recent studies have found unequal policy responsiveness, meaning that the policy preferences of high-income citizens are better reflected in implemented policies than the policy preferences of low-income citizens. This has been found mainly in a few studies from the US and a small number of single-country studies from Western Europe. However, there is a lack of comparative studies that stake out the terrain across a broader group of countries. We analyze survey data on the policy preferences of about 3,000 policy proposals from thirty European countries over nearly forty years, combined with information on whether each policy proposal was implemented or not. The results from the cross-country data confirm the general pattern from previous studies that policies supported by the rich are more likely to be implemented than those supported by the poor. We also test four explanations commonly found in the literature: whether unequal responsiveness is exacerbated by (a) high economic inequality, (b) the absence of campaign finance regulations, (c) low union density, and (d) low voter turnout.