Inequality, Labor Market Dualization, and the Rise of the Radical Right

• In Event: Party Ideology and the Economy

Abstract

What explains labor market outsiders’ support for the radical right? In the context of insider-outsider politics, heterogeneous interests of the labor provide a partial explanation for the ascendancy of the radical right. Labor market dualization, categorized by job security, creates a division between insiders enjoying employment protection and outsiders grappling with job insecurity and heightened unemployment risks. This divergence in policy preferences within the labor presents the mainstream left with an insider-outsider dilemma, as left parties find it challenging to represent both groups simultaneously due to their diverging interests. Consequently, left parties opt to prioritize insiders, leveraging their political mobilization capabilities through unions. This leaves under-represented outsiders seeking alternatives beyond the mainstream left, driven by their distinct policy preferences. To optimize their benefits, these outsiders advocate for policies addressing job insecurity and promoting social welfare, including redistribution. The radical right's welfare chauvinism, promising exclusionary benefits, becomes an attractive proposition for outsiders. However, it fails to explain the variability in preferences among outsiders, leading to the proposition that such diversity hinges on the interplay between micro- and macro-economic conditions. Notably, the impact of income inequality is underscored. Income inequality emerges as a crucial determinant influencing outsiders' support for the radical right. In instances of heightened inequality, support for radical-right parties diminishes among outsiders due to the perceived inadequacy of welfare benefits. The propensity of radical-right parties to form coalitions with right-wing counterparts advocating reduced social welfare, including redistribution, further diminishes their appeal. Despite the radical right's promises of exclusionary benefits, labor market outsiders anticipate an overall decline in the size of redistribution. When comparing expected benefits from the radical right with those from the mainstream left, outsiders may conclude that the universalistic welfare states offered by the mainstream left surpass the diminished and particularistic offerings of the radical right. This calculation is particularly pronounced in settings with greater income inequality, as outsiders become more attuned to economic considerations.

Author

• Nara Kang, Michigan State University