Redistribution, a core objective of public policy, often relies on progressive taxation. In representative democracies, policies should reflect citizens’ preferences, including those shaped by gender. However, both political institutions and societal preferences are deeply influenced by historical inertia, and therefore history may play a significant role.
In our recent study, “Women’s voice on redistribution: From gender equality to equalizing taxation”, published in the European Journal of Political Economy, we investigate the link between gender equality – and its historical roots – and redistribution.
Cross-country evidence
We examine how the historical roots of gender equality influence redistribution through taxation across 143 countries from 2000 to 2016.
Our analysis uses the ratio of direct taxes to indirect taxes, derived from the ICTD/UNU-WIDER Government Revenue Dataset, as the measure of redistribution. Direct taxes are inherently progressive due to features like tax brackets and allowances, while indirect taxes are typically regressive. Thus, a higher ratio indicates a higher equalising effect of the tax system on income.
We measure the historical roots of gender equality through two variables:
- The timing of women’s enfranchisement (the right to vote).
- The degree of feminism in historical family structures, based on Emmanuel Todd‘s sociological framework.
Figure 1 illustrates the geographical distribution of these variables.
Figure 1: Women’s suffrage and degree of feminism around the world
Note: The darker the shade for a country, the more recent enfranchisement on the left or the stronger the degree of feminism in family structure on the right.
Controlling for a wide range of economic, demographic, and political factors in a parsimonious model, and incorporating historical, cultural, and geographic controls in a more comprehensive one, our estimates reveal an intriguing pattern: countries with earlier women’s enfranchisement or a historical emphasis on women’s roles within the family exhibit a significantly higher share of direct taxes (relative to indirect taxes or total revenue) compared to countries with later enfranchisement and historical gender inequality within families.
Individual-level analysis
To complement our cross-country findings, the second part of our study examines redistributive preferences at the individual level. Using data from the European Social Survey (ESS) – a biennial dataset capturing attitudes and behaviours across 34 European countries from 2002 to 2016 – we explore how gender equality shapes individual attitudes toward redistribution.
The dependent variable reflects agreement with the statement: “The government should reduce differences in income levels”. Higher values indicate stronger support for redistribution.
Current gender equality is quantified using the Global Gender Gap Index (GGGI) from the World Economic Forum. This index evaluates disparities in four dimensions: political empowerment, economic participation, education, and health. Scores range from 0 to 1, with higher values signifying greater equality.
We test two hypotheses:
- In more gender-equal societies, both women and men may share stronger pro-redistribution preferences, indicating a positive correlation between gender equality and average support for redistributive.
- Gender equality may influence redistributive preferences differently for men and women, leading to stronger support among women than men.
The results clearly support the second hypothesis. The first hypothesis is rejected.
Figure 2 illustrates the partial correlation between a binary female indicator (‘dummy’) and pro-redistribution preferences as a function of aggregate gender equality. This is based on a baseline regression controlling for individual socio-economic characteristics, including income, education, age, marital status, household characteristics, religiosity, and political ideology, and the country’s per capita GDP.
Figure 2: Estimated partial correlations of the female dummy with redistributive preferences, as a function of GGGI
Note: The blue line represents the estimated partial correlation of the female dummy in a regression for redistributive preferences as a function of GGGI. The red and green lines identify the upper and the lower bounds of the 95% confidence intervals.
Our analysis reveals a positive and increasing partial correlation between the GGGI and the gender gap in redistributive preferences. In more gender-equal societies, the (positive) gender gap in preferences for redistribution is significantly larger, although the average level of redistributive support remains unchanged. This gender gap is statistically insignificant in environments with the lowest levels of gender equality.
Further analysis of the GGGI’s four components shows that political equality is the primary driver of these results. Women demonstrate significantly greater support for redistribution compared to men in politically more equal environments.
We strengthen these findings by combining cross-country and individual-level data using an an Instrumental Variable approach. Historical factors, such as the timing of women’s enfranchisement and their historical roles within families, serve as instruments for contemporary gender equality, particularly in the political domain.
Promoting gender equality and redistribution
In summary:
- Countries with earlier women’s enfranchisement or stronger historical roles for women within families exhibit higher levels of redistribution through taxation.
- At the individual level, gender-equal environments amplify the difference in redistributive preferences, primarily because women are systematically more supportive of redistribution than men, while men’s preferences remain largely unaffected.
- This pattern aligns with the “resource hypothesis” by Armin Falk and Johannes Hermle regarding different private and collective choices. Our findings suggest that women’s greater inclination toward redistribution may stem from motives like social insurance or risk aversion. In gender-equal societies, these differences are more likely to surface due to greater social acceptance.
The evidence underscores the pivotal role of female political empowerment in driving these disparities. From a policy perspective, promoting gender equality – particularly in the political sphere – not only advances equality but also strengthens the pursuit of redistribution, a fundamental goal of government intervention in market economies.
Looking ahead, it becomes valuable to explore whether the stronger pro-redistribution stance of women in gender-equal societies contributes to a faster reduction in income and wealth disparities over time.
Journal article
Monica Bozzano, Paola Profeta, Riccardo Puglisi, and Simona Scabrosetti, “Women’s Voice on Redistribution: from Gender Equality to Equalizing Taxation”, European Journal of Political Economy 2024, January, 81, 102497: https://doi.org/10.1016/j.ejpoleco.2023.102497
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