Document Type

Article

Publication Date

4-30-2018

Publication Title

Social Indicators Research

Volume

142

Issue

1

First page number:

65

Last page number:

82

Abstract

This paper examines the predictive power of a partisan conflict on income inequality. Our study contributes to the existing literature by using the newly introduced nonparametric causality-in-quantile testing approach to examine how political polarization in the United States affects several measures of income inequality and distribution overtime. The study uses annual time-series data between the periods 1917–2013. We find evidence in support of a dynamic causal relationship between partisan conflict and income inequality, except at the upper end of the quantiles. Our empirical findings suggest that a reduction in partisan conflict will lead to a reduction in our measures of income inequality, but this requires that inequality is not exceptionally high.

Keywords

Partisan conflict; Income inequality; Quantile causality

Disciplines

Income Distribution

Language

English

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