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Exceptional Argentina Di Tella, Glaeser and Llach - Thomas Piketty

Exceptional Argentina Di Tella, Glaeser and Llach - Thomas Piketty

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negative correlation between the proportion of " free-traders" <strong>and</strong> FPV votes by district. It may<br />

be the case that, irrespective of their classification, individuals in more agricultural districts are<br />

less likely to vote for the FPV, independently of their source of income. In that case, f<br />

d<br />

<strong>and</strong> ε<br />

d<br />

are negatively correlated <strong>and</strong> our results would be unable to distinguish between individual <strong>and</strong><br />

district-level political attitudes. However, even if that is the case, the fact that the aggregate source<br />

of income affects political attitudes at the district level is also consistent with the predictions of our<br />

model: service workers will support policies that increase the aggregate income of their district<br />

<strong>and</strong> boost the dem<strong>and</strong> for their services.<br />

One might suspect that these differences in political attitudes are driven exclusively by the<br />

heterogeneity in educational attainment across districts. However, if we classify individuals solely<br />

on the basis of their educational attainment, we obtain strikingly different results. The estimated<br />

probability for unskilled individuals (no secondary education) falls drastically, while the<br />

probability for skilled workers remains almost constant. Unskilled individuals employed in the<br />

primary sector were less likely to vote for the FPV in 2009, while skilled individuals employed in<br />

the secondary sector partially compensated for the loss of votes from skilled individuals employed<br />

in the tertiary sector.<br />

2007 Presidential Election 2009 Legislative Election<br />

Coef. S.E. 95% CI. Coef. S.E. 95% CI.<br />

Skilled 0.318 0.031 0.257 0.379 0.288 0.037 0.215 0.360<br />

Unskilled 0.662 0.036 0.590 0.733 0.253 0.043 0.169 0.337<br />

For comparison purposes, we present the maximum likelihood results for the specification:<br />

Φ β +σε . Notice how similar the estimated probabilities are in the two specifications.<br />

( )<br />

2007 Presidential Election 2009 Legislative Election<br />

Coef β S.E.<br />

i<br />

Φ ( β i<br />

) Coef β S.E.<br />

i<br />

Φ ( β i<br />

)<br />

Skilled -0.491 0.087 0.312 -0.569 0.110 0.285<br />

Unskilled 0.435 0.099 0.668 -0.698 0.138 0.243<br />

Sigma 0.207 0.073 0.262 0.062<br />

This provides support for our claim that the source of income is a key determinant of individuals'<br />

political attitudes. In particular, individuals with vested interests in the primary sector <strong>and</strong> skilled<br />

individuals in the tertiary sector support free-trade policies. Individuals whose source of income is<br />

linked to the manufacturing sector support protectionist policies. Moreover, this exercise also<br />

suggests that individuals took into account the ideological <strong>and</strong> political stance of the FPV with<br />

respect to protectionism. Those who opposed protectionism were less likely to vote for the FPV in<br />

2009 than in 2007.

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