The Influence of Democracy on Inequality
The Influence of Democracy on Inequality
This brief is part of the Democracy Action Lab's "The Case for Democracy" series, which curates academic scholarship on democracy’s impacts across various domains of governance and development. Drawing from an exhaustive review of the literature, this analysis presents selected works that encompass significant findings and illustrate how the academic conversation has unfolded.
Democracy can reduce political inequality and expand public goods provision, but it does not inherently lead to wealth equality or sustained redistribution. Outcomes depend on political will, institutional design, elite influence, and societal cleavages, with short-term democratization sometimes increasing inequality and longer-term gains requiring stable, modernized systems. Rising inequality may erode public support for democracy, making it crucial for policymakers to understand that economic transformation goes beyond the mere existence of democratic institutions.