Income and policy choices: Evidence from parliamentary decisions and referenda (2014)

We analyze political representation of preferences of different income groups by matching referendum outcomes for low, middle,and high-income voters with individual legislators› decisions on identical policy proposals. Results indicate that legislators more closely represent preferences of rich voters than preferences of middle-income and poor voters, and legislators are more responsive towards the rich. Preferences of low, middle, and high-income voters are, however, correlated. Representation of income groups varies according to legislators› party affiliations.

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Eichenberger Reiner, Portmann Marco, Stadelmann David