This study examines how rising inequality affects welfare generosity. It introduces the Political Reinforcement hypothesis, which suggests that growing economic disparity actually strengthens rather than modifies political polarization on welfare issues.
The research models political party platforms by analyzing two key factors:
- The ideology and opportunism of party members
- Voter interests based on income distribution patterns
Based on the assumption that welfare spending is a normal good within each income class, policy changes occur when inequality increases. This leads to:
- A majority of voters shifting rightward economically.
- The left-leaning parties strengthening their platforms' conservative stance against welfare generosity.
The findings are based on analyzing welfare policy positions from political parties across all 22 OECD countries.
