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Abstract: The main goal of this paper is to explore the relationship between
government
partisanship, policy and wage inequality at the lower half of the wage distribution. The
analysis is motivated by a puzzling finding in previous work: the absence of government
partisanship effects on inequality. My paper argues that to understand the relationship
between partisan government and inequality two fundamental things need to be done: to
separate the effects of partisanship on policy and of policy on inequality; and to assess
the influence of political agency once the mediating role of institutions is accounted for.
I explain why some institutions mitigate the influence of government partisanship while
others magnify it. By explicitly exploring the determinants of policy and inequality, my
paper presents a more accurate analysis of how governments promote redistribution. I
test my claims with data from 16 OECD countries from 1973 to 1995.
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