TY - JOUR

T1 - Cross-National Support for the Welfare State Under Wealth Inequality

AU - Jensen, Amalie Sofie

AU - Wiedemann, Andreas

N1 - Publisher Copyright: © The Author(s) 2023.

PY - 2023

Y1 - 2023

N2 - Wealth is often more unequally distributed than income, and there are considerable differences across countries. In this paper, we argue that wealth inequality helps explain cross-national variation in support for (and the size of) the welfare state because assets serve as private insurance. When wealth, particularly liquid assets, is unequally distributed across the income spectrum and high-income groups hold most assets, strong reinforcing preferences in favor of or against social policies result in antagonistic welfare politics and less government spending. When assets are more equitably distributed across the income spectrum, cross-cutting preferences emerge as more people support either insurance or redistribution. Welfare politics is consensual and facilitates a broader welfare coalition and more government spending. We analyze original cross-national survey data from nine OECD countries and provide evidence in support of our argument. Our findings suggest that wealth inequality reshapes the role of income in structuring welfare politics.

AB - Wealth is often more unequally distributed than income, and there are considerable differences across countries. In this paper, we argue that wealth inequality helps explain cross-national variation in support for (and the size of) the welfare state because assets serve as private insurance. When wealth, particularly liquid assets, is unequally distributed across the income spectrum and high-income groups hold most assets, strong reinforcing preferences in favor of or against social policies result in antagonistic welfare politics and less government spending. When assets are more equitably distributed across the income spectrum, cross-cutting preferences emerge as more people support either insurance or redistribution. Welfare politics is consensual and facilitates a broader welfare coalition and more government spending. We analyze original cross-national survey data from nine OECD countries and provide evidence in support of our argument. Our findings suggest that wealth inequality reshapes the role of income in structuring welfare politics.

KW - European politics

KW - political economy

KW - social welfare programs

KW - wealth inequality

U2 - 10.1177/00104140231168364

DO - 10.1177/00104140231168364

M3 - Journal article

AN - SCOPUS:85153173989

VL - 56

SP - 1959

EP - 1995

JO - Comparative Political Studies

JF - Comparative Political Studies

SN - 0010-4140

IS - 13

ER -