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1、Institutions,Partisanship,andInequalityintheLongRunKennethScheveDavidStasavageYaleUniversityNewYorkUniversitykenneth.scheve@yale.edudavid.stasavage@nyu.eduAugust200711WewouldliketothankThomasPikettyforusefulsuggestionsatthepointweweredevelopingthispaper,aswellasforsharingthedataontopincom
2、eshares.JesperRoineandDanielWaldenstromkindlyprovideduswiththedatafromtheirpaperontopincomesinSwedenandJonasPontussonprovideduswithuniondensitydata.WewouldalsoliketothankJimAlt,NealBeck,ThadDunning,MiriamGolden,StephenHaber,JamesHonaker,TorbenIversen,PeterKatzenstein,AndrewLeigh,DavidMayh
3、ew,AdamPrzeworski,RonRogowski,DavidSoskice,PeterSwenson,andseminarparticipantsatColumbia,NewYorkUniversity,NotreDame,PennState,Princeton,Stanford,Wisconsin,andYaleforcommentsonaninitialdraft.XiaoboLuandKajThomssonprovidedinvaluableresearchassistance.AbstractIthasbeenwidelysuggestedbypolit
4、icalscientiststhatinstitutionslikecentralizedwagebargain-ingandfactorslikegovernmentpartisanshiparecorrelatedwithdifferencesinincomeinequalitybetweenadvancedindustrialcountries.Thereisempiricalevidencefortheperiodsince1970tosupporteachofthesepropositions.Wemakeuseofnewdataontopincomeshares
5、toexaminetheeffectsofpartisanshipandwagebargainingoveramuchlongertimeperiod,nearlytheentiretwentiethcentury.Ourempiricalresultsprovidelittlesupportfortheideathateitherofthesetwofactorsiscorrelatedwithincomeinequalityoverthisperiod.Wethenshowthatacloserlookattheintroductionofcentralizedwage
6、bargaininginindividualcountriesduringthe1930sand1940srevealsthatincountriesthatmovedtocentralizewagebargaining,incomeinequalitywasalreadytrendingdownwardwellbeforetheinstitutionalchange,andthemovetocentralizedbargainingdidnotalterthistrend.Ourresultssuggestthattherewerealternativeinstitut
7、ionalpathstoreducedincomeinequalityduringmostofthetwentiethcentury.Thisraisesthepos-sibilitythatcommonlysharedeconomicandpoliticalevents,suchasworldwarsandeconomiccrises,mayultimatelybemoreimportantforunderstandingtheevolutionofincomeinequalitythanaretheinstitutiona
