How the left prospers from prosperity
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This paper investigates the relationship between fluctuations in economic growth and unemployment and voting along a left-right axis. I estimate a model that explains political fluctuations with economic fluctuations in the OECD countries. I find that higher economic growth moves policy sentiments to the left. I hold provision of social insurance through the welfare state to be the key to understanding of this relationship. I also find that the relationship changes over the sample period. I hold the tax raise needed to finance the expansion of the welfare state to be the reason for this.
Economic voting, political economy, voting behavior, panel data