Party Systems, Inequality, and Redistribution

Abstract

Political parties have long been theorized as a key political institution that links society with the formal political system, and thus have often featured prominently in theories of political economy and redistribution. Curiously, however, until recently party systems have received substantially less attention in theories seeking to explain redistribution among both democratic and non-democratic regimes. I build on this nascent literature by conceptualizing the relationship between party systems, inequality, and redistribution, advancing the argument that at least a portion of inequality and income redistribution in any given country is attributable to dynamics within its party system - particularly their structure and institutionalization. Hegemonic party systems can initiate large waves of social reform and redistribution in their formative years but their redistributive prospects significantly wane the longer a hegemonic party remains in power, while two-party systems are unlikely to provide much, if any, alleviation of inequality. Multi-party systems provide the greatest potential to redistribute, but the relationship is conditional on their relative institutionalization. Stable multi-party systems with institutionalized parties are more likely to exhibit both lower levels of inequality and redistribute more income, whereas inchoate counterparts are unlikely to be more redistributive than either hegemonic or two-party systems.