Democracies Pay Higher Wages
Abstract
Controlling for labor productivity, income levels, and other possible determinants, there is a robust and statistically significant association between the extent of democracy and the level of manufacturing wages in a country. The association exists both across countries and over time within countries. The coefficient estimates suggest that nonnegligible wage improvements result from the enhancement of democratic institutions: average wages in a country like Mexico would be expected to increase by 10 to 40 percent if Mexico were to attain a level of democracy comparable to that prevailing in the United States. Political competition and participation seem to be the driving force behind the result.
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The model developed in the paper is similar in spirit to the regression model used by Dani Rodrik to investigate the effect of democracy on wages.
“The model developed below is similar in spirit to the regression model used by Dani Rodrik to investigate the effect of democracy on wages (Rodrik 1999).”
From Modeling Social Pressures Toward Political Instability (2013) · cites this paper as Rodrik 1999
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Cites
Regression Diagnostics: Identifying Influential Data and Sources of Collinearity
Belsley, D. A., Kuh, E., & Welsch, R. E. (1980) · Wiley Series in Probability and Statistics · doi:10.1002/0471725153 · Cited by 7,297 · see citing works
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Research works printed but not linked: 2
- Belsley, D.A., E. Kuh, and R.E. Welsch, Regression Diagnostics, John Wiley & Sons, New York, 1980.
- Helliwell, John, "Empirical Linkages Between Democracy and Economic Growth," British Journal of Political Science 24, 1994, 225-248
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Economic Origins of Dictatorship and Democracy
Acemoglu, D., & Robinson, J. A. (2005) · doi:10.1017/cbo9780511510809 · Cited by 4,810 · see citing works
Case Selection Techniques in Case Study Research: A Menu of Qualitative and Quantitative Options
Seawright, J., & Gerring, J. (2008) · Political Research Quarterly · doi:10.1177/1065912907313077 · Cited by 3,827 · see citing works
Jensen, N. M. (2003) · International Organization · doi:10.1017/s0020818303573040 · Cited by 1,017 · see citing works
HAS DEMOCRATIZATION REDUCED INFANT MORTALITY IN SUB-SAHARAN AFRICA? EVIDENCE FROM MICRO DATA
Kudamatsu, M. (2012) · Journal of the European Economic Association · doi:10.1111/j.1542-4774.2012.01092.x · Cited by 373 · see citing works
Inequality and Regime Change: Democratic Transitions and the Stability of Democratic Rule
HAGGARD, S., & KAUFMAN, R. R. (2012) · American Political Science Review · doi:10.1017/s0003055412000287 · Cited by 300 · see citing works
Modeling Social Pressures Toward Political Instability
Turchin, P. (2013) · Cliodynamics: The Journal of Quantitative History and Cultural Evolution · doi:10.21237/c7clio4221333 · Cited by 42 · see citing works
Income inequality in authoritarian regimes: the role of political institutions and state capacity
Panaro, A. V., & Vaccaro, A. (2023) · Italian Political Science Review/Rivista Italiana di Scienza Politica · doi:10.1017/ipo.2022.17 · Cited by 7 · see citing works
- Authors
- Rodrik, D.
- Affiliations
- Harvard University (US)
- Corresponding author
- Rodrik, D.
- ORCID
- Rodrik, D.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1999-08-01
- Volume
- 114
- Issue
- 3
- Pages
- 707-738
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2892139511
- Cited by
- 555
- References
- 1
- Citations by year
- 2026: 5 · 2025: 14 · 2024: 9 · 2023: 16 · 2022: 22 · 2021: 15 · 2020: 14 · 2019: 23 · 2018: 13 · 2017: 19 · 2016: 23 · 2015: 20 · 2014: 28 · 2013: 34 · 2012: 21
- FWCI
- 77.25
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- OpenGrey (Institut de l'Information Scientifique et Technique) (submittedVersion)
- HighWire Press Open Archive (submittedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Corruption and Economic Development
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Keywords
- democracy, wages, manufacturing wages, political competition, political participation, democratic institutions, labor productivity, income level, cross-national comparison, within-country variation
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