Brandon Parsons Explores the Complex Link Between Political Regimes and Income Inequality

Pepperdine Graziadio faculty member Brandon Parsons, in collaboration with Shahdad Naghshpour, has published new research in Economics & Politics examining the relationship between political regimes and income redistribution across 126 countries. Their study, titled "Political Regime and Income (Re)distribution—Panel Data Analysis in 126 Countries," spans from 1988 to 2021 and presents insightful findings on how shifts toward democracy affect income inequality.

The research divides its analysis between members of the Organization for Economic Cooperation and Development (OCED), and non-OECD countries, finding significant contrasts. In non-OECD nations, democratic transitions are associated with increased income inequality, reflected in rising market and net Gini coefficients, with less effective income redistribution. These results suggest that democratization does not automatically bring about equitable economic policies in developing countries. Interestingly, the study finds no significant relationship between political regimes and income inequality in OECD countries. The authors suggest a ceiling effect, where many OECD countries have had maximum political regime scores for years, resulting in minimal variance and, consequently, statistical insignificance.

Parsons' research uses multiple econometric models and political regime measures, confirming that government stability and institutional strength also play important roles in reducing inequality. 

This study offers a critical perspective on how political dynamics can shape economic realities, challenging conventional assumptions about democracy’s impact on income distribution. The researchers are currently studying if increases in economic freedom (e.g., adoption of market-oriented reforms that often coincide with democratization) may play a role in these findings. 

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