Does the Type of Democracy Matter? Consensus Democracy and the Income Inequality
Keywords:
Democracy, consensus democracy, majoritarian democracy, income distribution, Gini index, equalityAbstract
Several studies on democracy and equity have explored the effects of the level of democracy on income distribution, as a general way of contrasting the performance of democratic and non-democratic systems. This article examines the effect of different types of democracy on income distribution. The main finding is that, controlling forn non-institutional factors that have a bearing on income distribution, countries with political systems that foster power-sharing (consensus democracies) tendo to have a more equitable income distribution than conuntries with political systems that foster the concentration of political power (majoritarian democracies). Future research should incorporate additional light on the nature of the causal links between difrferent institutional forms of democracies and income distribution.
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