Does Democracy Promote Inclusive Growth?

Fernando Bizzarro
Assistant Professor of Political Science
Boston College

The presentation demonstrates that democracy fosters inclusive economic growth by raising pre-tax incomes across the entire distribution, offering a clear advantage for the majority of centiles compared to autocratic regimes. While democracies have historically outperformed autocracies, this "democratic premium" has narrowed in recent years as the top 1% has begun to capture a larger share of growth within democratic systems. These shifts suggest that the traditional alignment between democracy and broad-based prosperity is weakening, potentially undermining the long-term political stability and legitimacy of democratic institutions.

Fernando Bizzarro is assistant professor of political science at Boston College whose research focuses on the nature, causes, and consequences of democracy and political parties, with a substantive emphasis on Latin America. He earned his PhD from Harvard University in 2023 and previously held a postdoctoral fellowship at Yale University.