Inequality, income, and democracy in perspective: Insights from novel data analysis

Rute Martins Caeiro, Rachel M. Gisselquist and Klarizze Anne Martin Puzon

No wp-2025-32, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The relationship between economic development, inequality, and democratization has long been debated in the literature. Yet empirical analyses of this interplay have been limited and have yielded overall mixed and inconsistent results. This paper seeks to address this gap by examining the impact of income inequality on democracy, focusing particularly on the influential theory proposed by Acemoglu and Robinson, which predicts an inverted U-shaped relationship between inequality and democracy.

Keywords: Democracy; Inequality; Income (search for similar items in EconPapers)
Date: 2025
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