Research Article
BibTex RIS Cite

Shadow Economy and Political Participation in the United States

Year 2022, Volume: 30 Issue: 52, 11 - 25, 28.04.2022
https://doi.org/10.17233/sosyoekonomi.2022.02.01

Abstract

The empirical evidence presented in this study indicates a negative relationship between the size of the shadow economy and political participation. Based on panel data from 50 states for four election cycles between 2001 and 2008, regression results show that in the United States, both voter turnout rate and political contributions decline as the shadow economy grows. Specifically, when the size of the shadow economy increased across election cycles and between states by 1%, the voter turnout rate declined by 6.6% (P<0.01), and political contributions went down by 11.2% (P<0.01).

References

  • Adom, A. et al. (2016), “Political Instability and the Informal Economy”, World Development, 85, 31-42.
  • Aguilar, E. et al. (1999), “Associations and Activism: Mobilization of Urban Informal Workers in Costa Rica and Nicaragua”, Journal of Interamerican Studies and World Affairs, 41(3), 35-66.
  • Ansolabehere, S. et al. (2003), “Why is There so Little Money in U.S. Politics?”, Journal of Economic Perspectives, 17(1), 105-130.
  • Bhatti, Y. (2017), “Type of education and voter turnout - Evidence from a register-based panel”, Electoral Studies, 49, 108-117.
  • Blanton, R. & D. Peksen (2019), “Labor Laws and Shadow Economies: A Cross-National Assessment”, Social Science Quarterly, 100(5), 1540-1565.
  • Boatright, R.G. & M.J. Malbin (2005), “Political contribution tax credits and citizen participation”, American Politics Research, 33, 787-817.
  • Brady, H. (1999), “Political Participation”, in: J.P. Robinson et al. (eds.). Measures of Political Attitudes (737-801), San Diego: Academic Press.
  • Buehn, A. & F. Schneider (2012), “Shadow economies around the world: Novel insights, accepted knowledge, and new estimates”, International Tax and Public Finance, 19(1), 139-171.
  • Darbi, W. & P. Knott (2016), “Strategising practices in an informal economy setting: A case of strategic networking”, European Management Journal, 34, 400-413.
  • Desilver, B.Y.D. (2014), “Voter turnout always drops off for midterm elections, but why?”, Pew Research Center, 3-7.
  • Dreher, A. & F. Schneider (2010), “Corruption and the shadow economy: an empirical analysis”, Public Choice, 144(1-2), 215-238.
  • Driskell, R. et al. (2008), “Faith and Politics: The Influence of Religious Beliefs on Political Participation”, Social Science Quarterly, 89(2), 294-314.
  • Enste, D. & F. Schneider (2000), “Shadow Economies: Size, Causes, and Consequences”, Journal of Economic Literature, 38(1), 77-114.
  • Geys, B. (2006), “Explaining voter turnout: A review of aggregate-level research”, Electoral Studies, 25(4), 637-663.
  • Gokcekus, O. & E. Tower (2003), “An efficiency enhancing minimum wage”, Journal of Economic Policy Reform, 6(4), 247-257.
  • Gokcekus, O. & S. Sonan (2017), “Political contributions and corruption in the United States”, Journal of Economic Policy Reform, 20(4), 360-372.
  • Grant, J.T. & T.J. Rudolph (2002), “To give or not to give: Modeling individuals' contribution decisions”, Political Behavior, 24(1), 31-54.
  • Heidbreder, B. & T. Holbrook (2010), “Does Measurement Matter? The Case of VAP and VEP in Models of Voter Turnout in the United States”, States Politics & Policy Quarterly, 10(2), 157-179.
  • Kus, B. (2010), “Regulatory governance and the informal economy: cross-national comparisons”, Socio-Economic Review, 8, 487-510.
  • La Raja, R.J. (2014), “Political Participation and Civic Courage: The Negative Effect of Transparency on Making Small Campaign Contributions”, Political Behavior, 36(4), 753-76.
  • Lake, J. (2015), “Revisiting the link between PAC contributions and lobbying expenditures”, European Journal of Political Economy, 37, 86-101.
  • Leighley, J. (1995), “Attitudes, Opportunities, and Incentives: A Field Essay on Political Participation”, Political Research Quarterly, 48(1), 181-209.
  • Leighley, J. (1996), “Group Membership and the Mobilization of Political Participation”, Journal of Politics, 58(2), 447-463.
  • Leighley, J. & J. Nagler (2016), “Latino Electoral Participation: Variations on Demographics and Ethnicity”, RSF: The Russell Sage Foundation Journal of the Social Sciences, 2(3), 148-164.
  • Lim, C. (2008), “Social Networks and Political Participation: How Do Networks Matter?”, Social Forces, 87(2), 961-982.
  • Martinez i Coma, F. (2016), “Turnout determinants in democracies and in non-democracies”, Electoral Studies, 41, 50-59.
  • Martinez i Coma, F. & A. Nai (2017), “Ethnic diversity decreases turnout. Comparative evidence from over 650 elections around the world”, Electoral Studies, 49, 75-95.
  • McClurg, S.D. (2003). “Social Networks and Political Participation: The Role of Social Interaction in Explaining Political Participation”, Political Research Quarterly, 56(4), 449-64.
  • McDonald, M. (2002), “The Turnout Rate among Eligible Voters in the States, 1980-2000”, State Politics & Policy Quarterly, 2(2), 199-212.
  • Meagher, K. (2011), “Informal Economies and Urban Governance in Nigeria: Popular Empowerment or Political Exclusion”, African Studies Review, 54(2), 47-72.
  • Parenti, M. (1977), Democracy for the Few, 3rd ed. New York: St. Martin's.
  • Pommerehne, W. & F. Schneider (1985), “The Decline of Productivity Growth and the Rise of the Shadow Economy in the U.S.”, Working Paper, 85:9, U. Aarhus, Denmark.
  • Popan, J.R. & Y. Hinojosa (2017), “Electoral participation among young latinos: Exploring the importance of psychological variables”, Journal of Latina/o Psychology, 5(2), 76-87.
  • Potochnick, S. & M. Stegmaier (2020), “Latino Political Participation by Citizenship Status and Immigrant Generation”, Social Science Quarterly, 101(2), 527-544.
  • Powell, G.B. (1986), “American Voter Turnout in Comparative Perspective”, American Political Science Review, 80(1), 17-43.
  • Putnam, R.D. (2000), “Bowling Alone: America’s Declining Social Capital”, in: L. Crothers & C. Lockhart (eds.), Culture and Politics, Palgrave Macmillan, New York.
  • Schelker, M. & M. Schneiter (2017), “The elasticity of voter turnout: Investing 85 cents per voter to increase voter turnout by 4 percent”, Electoral Studies, 49, 65-74.
  • Smets, K. & C. van Ham (2013), “The embarrassment of riches? A meta-analysis of individual-level research on voter turnout”, Electoral Studies, 32(2), 344-359.
  • Souraf, F.J. (1992), “Politics and Money”, American Behavioral Scientist, 35(6), 725-34.
  • Stockemer, D. (2017), “What Affects Voter Turnout? A Review Article/Meta-Analysis of Aggregate Research”, Government and Opposition, 52(4), 698-722.
  • Stockemer, D. et al. (2013), “Bribes and ballots: The impact of corruption on voter turnout in democracies”, International Political Science Review, 34(1), 74-90.
  • Stratmann, T. (2005), “Some talk: Money in politics. A (partial) review of the literature”, Policy Challenges and Political Responses: Public Choice Perspectives on the Post-9/11 World, 135-156.
  • Sundström, A. & D. Stockemer (2015), “Regional variation in voter turnout in Europe: The impact of corruption perceptions”, Electoral Studies, 40, 158-169.
  • Tripathi, M. et al. (2002), “Are PAC Contributions and Lobbying Linked? New Evidence from the 1995 Lobby Disclosure Act”, Business and Politics, 4(2), 131-155.
  • Wiseman, T. (2013), “U.S. shadow economies: A state-level study”, Constitutional Political Economy, 24(4), 310-335.
  • Wooldridge, J. (2010), Econometric Analysis of Cross Section and Panel Data, Cambridge, Massachusetts: MIT Press.

Amerika Birleşik Devletleri’nde Kayıt Dışı Ekonomi ve Politik Katılım

Year 2022, Volume: 30 Issue: 52, 11 - 25, 28.04.2022
https://doi.org/10.17233/sosyoekonomi.2022.02.01

Abstract

Bu çalışmada sunulan ampirik kanıtlar, kayıt dışı ekonominin büyüklüğü ile politik katılım arasında negatif bir ilişki olduğunu göstermektedir. 2001 ile 2008 arasındaki dört seçim dönemi için 50 eyaletten alınan panel verilerine dayanan regresyon sonuçları, ABD'de kayıt dışı ekonomi büyüdükçe hem seçmen katılım oranının hem de siyasi katkıların azaldığını gösteriyor: seçim dönemleri boyunca eyaletler arasında kayıt dışı ekonominin boyutu %1 arttığında, seçmen katılım oranı %6,6 (P<0,01) ve siyasi katkılar %11,2 (P<0,01) azalmaktadır.

References

  • Adom, A. et al. (2016), “Political Instability and the Informal Economy”, World Development, 85, 31-42.
  • Aguilar, E. et al. (1999), “Associations and Activism: Mobilization of Urban Informal Workers in Costa Rica and Nicaragua”, Journal of Interamerican Studies and World Affairs, 41(3), 35-66.
  • Ansolabehere, S. et al. (2003), “Why is There so Little Money in U.S. Politics?”, Journal of Economic Perspectives, 17(1), 105-130.
  • Bhatti, Y. (2017), “Type of education and voter turnout - Evidence from a register-based panel”, Electoral Studies, 49, 108-117.
  • Blanton, R. & D. Peksen (2019), “Labor Laws and Shadow Economies: A Cross-National Assessment”, Social Science Quarterly, 100(5), 1540-1565.
  • Boatright, R.G. & M.J. Malbin (2005), “Political contribution tax credits and citizen participation”, American Politics Research, 33, 787-817.
  • Brady, H. (1999), “Political Participation”, in: J.P. Robinson et al. (eds.). Measures of Political Attitudes (737-801), San Diego: Academic Press.
  • Buehn, A. & F. Schneider (2012), “Shadow economies around the world: Novel insights, accepted knowledge, and new estimates”, International Tax and Public Finance, 19(1), 139-171.
  • Darbi, W. & P. Knott (2016), “Strategising practices in an informal economy setting: A case of strategic networking”, European Management Journal, 34, 400-413.
  • Desilver, B.Y.D. (2014), “Voter turnout always drops off for midterm elections, but why?”, Pew Research Center, 3-7.
  • Dreher, A. & F. Schneider (2010), “Corruption and the shadow economy: an empirical analysis”, Public Choice, 144(1-2), 215-238.
  • Driskell, R. et al. (2008), “Faith and Politics: The Influence of Religious Beliefs on Political Participation”, Social Science Quarterly, 89(2), 294-314.
  • Enste, D. & F. Schneider (2000), “Shadow Economies: Size, Causes, and Consequences”, Journal of Economic Literature, 38(1), 77-114.
  • Geys, B. (2006), “Explaining voter turnout: A review of aggregate-level research”, Electoral Studies, 25(4), 637-663.
  • Gokcekus, O. & E. Tower (2003), “An efficiency enhancing minimum wage”, Journal of Economic Policy Reform, 6(4), 247-257.
  • Gokcekus, O. & S. Sonan (2017), “Political contributions and corruption in the United States”, Journal of Economic Policy Reform, 20(4), 360-372.
  • Grant, J.T. & T.J. Rudolph (2002), “To give or not to give: Modeling individuals' contribution decisions”, Political Behavior, 24(1), 31-54.
  • Heidbreder, B. & T. Holbrook (2010), “Does Measurement Matter? The Case of VAP and VEP in Models of Voter Turnout in the United States”, States Politics & Policy Quarterly, 10(2), 157-179.
  • Kus, B. (2010), “Regulatory governance and the informal economy: cross-national comparisons”, Socio-Economic Review, 8, 487-510.
  • La Raja, R.J. (2014), “Political Participation and Civic Courage: The Negative Effect of Transparency on Making Small Campaign Contributions”, Political Behavior, 36(4), 753-76.
  • Lake, J. (2015), “Revisiting the link between PAC contributions and lobbying expenditures”, European Journal of Political Economy, 37, 86-101.
  • Leighley, J. (1995), “Attitudes, Opportunities, and Incentives: A Field Essay on Political Participation”, Political Research Quarterly, 48(1), 181-209.
  • Leighley, J. (1996), “Group Membership and the Mobilization of Political Participation”, Journal of Politics, 58(2), 447-463.
  • Leighley, J. & J. Nagler (2016), “Latino Electoral Participation: Variations on Demographics and Ethnicity”, RSF: The Russell Sage Foundation Journal of the Social Sciences, 2(3), 148-164.
  • Lim, C. (2008), “Social Networks and Political Participation: How Do Networks Matter?”, Social Forces, 87(2), 961-982.
  • Martinez i Coma, F. (2016), “Turnout determinants in democracies and in non-democracies”, Electoral Studies, 41, 50-59.
  • Martinez i Coma, F. & A. Nai (2017), “Ethnic diversity decreases turnout. Comparative evidence from over 650 elections around the world”, Electoral Studies, 49, 75-95.
  • McClurg, S.D. (2003). “Social Networks and Political Participation: The Role of Social Interaction in Explaining Political Participation”, Political Research Quarterly, 56(4), 449-64.
  • McDonald, M. (2002), “The Turnout Rate among Eligible Voters in the States, 1980-2000”, State Politics & Policy Quarterly, 2(2), 199-212.
  • Meagher, K. (2011), “Informal Economies and Urban Governance in Nigeria: Popular Empowerment or Political Exclusion”, African Studies Review, 54(2), 47-72.
  • Parenti, M. (1977), Democracy for the Few, 3rd ed. New York: St. Martin's.
  • Pommerehne, W. & F. Schneider (1985), “The Decline of Productivity Growth and the Rise of the Shadow Economy in the U.S.”, Working Paper, 85:9, U. Aarhus, Denmark.
  • Popan, J.R. & Y. Hinojosa (2017), “Electoral participation among young latinos: Exploring the importance of psychological variables”, Journal of Latina/o Psychology, 5(2), 76-87.
  • Potochnick, S. & M. Stegmaier (2020), “Latino Political Participation by Citizenship Status and Immigrant Generation”, Social Science Quarterly, 101(2), 527-544.
  • Powell, G.B. (1986), “American Voter Turnout in Comparative Perspective”, American Political Science Review, 80(1), 17-43.
  • Putnam, R.D. (2000), “Bowling Alone: America’s Declining Social Capital”, in: L. Crothers & C. Lockhart (eds.), Culture and Politics, Palgrave Macmillan, New York.
  • Schelker, M. & M. Schneiter (2017), “The elasticity of voter turnout: Investing 85 cents per voter to increase voter turnout by 4 percent”, Electoral Studies, 49, 65-74.
  • Smets, K. & C. van Ham (2013), “The embarrassment of riches? A meta-analysis of individual-level research on voter turnout”, Electoral Studies, 32(2), 344-359.
  • Souraf, F.J. (1992), “Politics and Money”, American Behavioral Scientist, 35(6), 725-34.
  • Stockemer, D. (2017), “What Affects Voter Turnout? A Review Article/Meta-Analysis of Aggregate Research”, Government and Opposition, 52(4), 698-722.
  • Stockemer, D. et al. (2013), “Bribes and ballots: The impact of corruption on voter turnout in democracies”, International Political Science Review, 34(1), 74-90.
  • Stratmann, T. (2005), “Some talk: Money in politics. A (partial) review of the literature”, Policy Challenges and Political Responses: Public Choice Perspectives on the Post-9/11 World, 135-156.
  • Sundström, A. & D. Stockemer (2015), “Regional variation in voter turnout in Europe: The impact of corruption perceptions”, Electoral Studies, 40, 158-169.
  • Tripathi, M. et al. (2002), “Are PAC Contributions and Lobbying Linked? New Evidence from the 1995 Lobby Disclosure Act”, Business and Politics, 4(2), 131-155.
  • Wiseman, T. (2013), “U.S. shadow economies: A state-level study”, Constitutional Political Economy, 24(4), 310-335.
  • Wooldridge, J. (2010), Econometric Analysis of Cross Section and Panel Data, Cambridge, Massachusetts: MIT Press.
There are 46 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Omer Gokcekus 0000-0001-8109-5918

Shawn M. Mcfall This is me 0000-0002-9436-5398

Elshan Bagırzadeh 0000-0003-0039-1446

Publication Date April 28, 2022
Submission Date April 28, 2021
Published in Issue Year 2022 Volume: 30 Issue: 52

Cite

APA Gokcekus, O., Mcfall, S. M., & Bagırzadeh, E. (2022). Shadow Economy and Political Participation in the United States. Sosyoekonomi, 30(52), 11-25. https://doi.org/10.17233/sosyoekonomi.2022.02.01
AMA Gokcekus O, Mcfall SM, Bagırzadeh E. Shadow Economy and Political Participation in the United States. Sosyoekonomi. April 2022;30(52):11-25. doi:10.17233/sosyoekonomi.2022.02.01
Chicago Gokcekus, Omer, Shawn M. Mcfall, and Elshan Bagırzadeh. “Shadow Economy and Political Participation in the United States”. Sosyoekonomi 30, no. 52 (April 2022): 11-25. https://doi.org/10.17233/sosyoekonomi.2022.02.01.
EndNote Gokcekus O, Mcfall SM, Bagırzadeh E (April 1, 2022) Shadow Economy and Political Participation in the United States. Sosyoekonomi 30 52 11–25.
IEEE O. Gokcekus, S. M. Mcfall, and E. Bagırzadeh, “Shadow Economy and Political Participation in the United States”, Sosyoekonomi, vol. 30, no. 52, pp. 11–25, 2022, doi: 10.17233/sosyoekonomi.2022.02.01.
ISNAD Gokcekus, Omer et al. “Shadow Economy and Political Participation in the United States”. Sosyoekonomi 30/52 (April 2022), 11-25. https://doi.org/10.17233/sosyoekonomi.2022.02.01.
JAMA Gokcekus O, Mcfall SM, Bagırzadeh E. Shadow Economy and Political Participation in the United States. Sosyoekonomi. 2022;30:11–25.
MLA Gokcekus, Omer et al. “Shadow Economy and Political Participation in the United States”. Sosyoekonomi, vol. 30, no. 52, 2022, pp. 11-25, doi:10.17233/sosyoekonomi.2022.02.01.
Vancouver Gokcekus O, Mcfall SM, Bagırzadeh E. Shadow Economy and Political Participation in the United States. Sosyoekonomi. 2022;30(52):11-25.