Party Systems, Political Competition, and Inequality in Subnational Brazil

Abstract

Many have attributed the recent unprecedented wave of redistribution in Brazil to national economic and political factors such as the commodities boom, changes in minimum wages or premiums to skilled labor, the rise of the Partido dos Trabalhadores and President Luiz Inácio Lula da Silva and a commodities-driven economic boom. Yet much less attention has been devoted to the study of inequality at the subnational level, where trajectories of inequality across states remain incredibly varied. This article argues that Brazil’s most recent democratic transition enhanced political competition in many Brazilian states, which in turn has contributed to the amelioration of inequality. Using an original time-series cross-sectional dataset covering the highly redistributive period of 1998–2015, this article finds that Brazilian states with higher political and party competition have lower levels of inequality than those with less competitive party systems.