VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
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VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAitical Science, Rutgers University kảkifniỉg£i@âQL£<2m 732-932-9280Abstract. We assess the factors that affect judgments about the fairness of the distribution of wealth with pooled public opinion data from Latinobarometro surveys conducted in 1997, 2001, and 2002. We test hypotheses with a multilev VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAel logit mode) that allows US not only to examine the effects of the class background and perceptions of individual respondents, but also to assess thVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
e impact of societal-level differences in economic grow th, GDP per capita, income concentration, and the availability of information. Examining the dVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAr hypotheses derived from distributive conflict and development theories.Keywords: inequality: class conflicts; redistribution: relative deprivation: development and growth1Introduction“Between a condition of objective inequality and the response of a disadvantaged person,” Robert Dahl (1971: 95) ha VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAs written, “lie the perceptions, evaluations, expectations - in short, the psyche - of the individual.” Dahl goes on to warn that political responsesVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
to economic inequality will depend on many factors other than the “individual psyche." Even when individuals believe that the distribution of wealth iVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAs and the lack of political resources. Nevertheless, judgments about whether distribution is fair or unfair are likely to play a significant role in decisions to vote for redistribution or to engage in protest against inequality.In this paper, we assess hypotheses about the social and economic deter VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAminants of such judgments with pooled public opinion data from Latinobarometro surveys conducted in 1997, 2001, and 2002.1 To measure normative assessVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
ments of the distribution of wealth (our dependent variable) we use responses to a question which asked respondents whether they believed the distribuVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA reference groups were salient to the respondents (neighbors, elites, etc.) when making their judgments about economic inequality, as well as whether they thought the gaps in wealth were increasing or diminishing. Nevertheless, perceptions of unfairness provide a reasonable first approximation of ho VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAw people judge the existing distribution of wealth.To analyze the sources of such judgments, we deploy a hierarchical logit model that allows us to deVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
ploy not only survey information about the respondents’ background and beliefs, but also data about the societies in which they live. “Individual-leveVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAnditions. “Societal” variables include measures of GDP per capita, economic growth, economic inequality, and access to information. The multilevel model, finally, also allows us to examine the interactions between individual and societal variables. We locus primarily on the effects ol these broader VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAsoc io-economic variables, which have been central to ongoing theoretical debates over the effects of economic inequality.The remainder of the paper pVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
roceeds as follows. The first sec lion reviews some of the theoretic al debates about responses to economic inequality and the social-psychological dyVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAinequality. The third and fourth sections lay out our analytic approach and present the results of our statistical estimates. The fifth section concludes.I. Inequality and Political Conflict: Ongoing DebatesThe idea that societies with wide disparities in income and wealth are prone to intense distr VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAibutive conflict goes back al least as far as Aristotle. Nevertheless, there remains a lively debate about how people react to such disparities, and hVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
ow such reactions affect social stability and democratic politics. For example, early empirical work that linked inequality Io social violence (RussenVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAilly, and Tarrow 2001) and civil war (Collier and Sambanis 2005. Fearon and Laitin 2003). These later studies emphasize the causal importance of the resources and opportunities available to contending forces, but they find no systematic effect of real or perceived income inequality.3https://khothuvi VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAen.cori!Similarly, although median voter theory pioneered by Meltzer and Richard (1981) constitutes an important point of departure in some analyses oVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
f redistributive conflict (Boix 2003), both survey and aggregate-data research have cast doubts on its basic premise: that the demand for progressive VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA; Kenworthy and McCall 2008).Despite such evidence, however, concerns about the effects of inequality remain very much on the agenda of comparative political analysis, and the jury is still out. Our examination of the sources of judgments about economic distribution is relevant to three important li VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAnes of contemporary research on these questions. First, and most directly, struggles over economic inequality and redistribution provide the central fVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
ocus of recent landmark studies by Boix (2003) and Acemoglu and Robinson (2007; hereafter A&R) on democratization and democratic stability. There are,VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA most likely at middle levels of inequality, whereas Boix posits a linear effect. But both studies converge around the proposition that democracies are unlikely to take root or survive distributive conflicts that erupt at very high levels of economic inequality. At the individual-level, this implies VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA that dissatisfaction with distribution should increase as income gaps grow wider.A second body of research - an “economic development" perspective -VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
places greater emphasis on economic growth and national wealth than on distribution per se. Tills approach dates at least as far back as Lipset's (195VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAevels of national wealth strongly increase the probability that democracies will survive.4https://khothuvien.cori!The causal mechanisms that underlie this relationship are unclear, as Przeworski et al. acknowledge. Nevertheless, the findings suggest that high levels of countiy wealth should reduce t VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAhe sense of dissatisfaction among people at all levels of the income pyramid, since they can be expected to have achieved a higher standard of livingVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
than their counterparts in poorer countries.Finally, theories of relative deprivation (Gurr 1970) provide still another approach to the effects of ineVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAt can stem from an individual’s expectations about her own achievements as well as from a comparison with the situation of others. Nevertheless, large or increasing gaps between one’s own economic wellbeing and that of the rest of society might be expected to increase the sense of relative deprivati VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAon and, therefore, dissatisfaction with the distribution of wealth. Hirschman and Rothchild’s (1973) famous "tunnel theory” provides a classic statemeVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
nt of this possibility. They argue that while people may tolerate growing inequality at early stages of development, they become less tolerant over tiVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICABrian D. CramerPhD. Candidate, Rutgers University cramer@rci.mtgers.eduRobert R. KaufmanProfessor of Poli VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAsive socioeconomic development” - national wealth combined with continuing high levels of poverty - is positively linked to political conflict and the breakdown of democracies. In short, we would expect that dissatisfaction with distribution would increase among people who fear that development has VIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICAleft them behind.Each of these bodies of writing emphasize the causal importance of large-scale social and economic factors and their effects on politVIEWS OF ECONOMIC INEQUALITY IN LATIN AMERICA
ical behavior and outcomes. But as Dahl (1971) implied, these effects pass through individual attitudes and perceptions; and although this5connectionGọi ngay
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