• Research Group

Political Economy of Inequality

The research group ‘Political Economy of Inequality’ investigates how socioeconomic and political inequalities are interlinked and explores ways to mitigate them. It analyses political processes, how public attitudes form and are perceived by political elites, and which role parties assume in shaping the politics of redistribution and (socio-)ecological transformation. Applying diverse theoretical perspectives and methodological approaches, the group addresses the pressing challenges of preserving social cohesion and democratic legitimacy in times of rapid socio-economic and ecological change.

News & Highlights

Research Profile

The research group ‘Political Economy of Inequality’ explores how socioeconomic inequalities are politically processed – focusing on mechanisms that obstruct or enable responsive, and more equitable democratic politics. Drawing on interdisciplinary perspectives and mixed methods, their work aims to elucidate how inequality is reproduced, contested, and potentially reduced within advanced capitalist democracies.

The research group pursues this agenda in three closely connected strands of inquiry, integrating micro-level perceptions, meso-level organisational logics, and macro-institutional structures:

a hand holding a stenciled paper with a crossed equality symbol; blurred in the background is a crowd of people © © 1STunningART/stock.adobe.com

This project analyses concrete political processes that shape redistributive policies, with a particular emphasis on taxation, social and climate policy. The research group examines the role of political parties – especially those committed to egalitarian goals – and investigates how internal organisational dynamics, competence patterns, strategic choices, historical legacies and organised interests influence their engagement with inequality. Specific case studies focus on the agenda-setting stage, critical discursive shifts, and the mobilisation dynamics that affect policy development over time.

Understanding how citizens perceive inequality and express attitudes towards redistribution and other relevant policies is key to the work in this strand. The research group studies how attitudes are formed and how they relate to broader ideas of fairness. It also explores how people prioritise different policy issues, and whether these priorities differ between high- and low-status citizens. Focus groups are well suited for identifying citizens’ policy priorities, clarifying where stable preferences exist – and where attitudes may be vague, ambivalent, or absent altogether. Combined with surveys and media analysis, this approach helps reveal how social identities and lived experiences shape both perceptions of inequality and concrete policy demands.

By linking qualitative data on citizens and political elites, this focus area explores the reciprocal relationship between public opinion and political decision-making. The group understands political representation as an interpretive and contested process. They examine how political actors respond to ambiguous or contradictory public signals, how they claim authority to interpret public opinion, and how these dynamics affect responsiveness across socio-economic groups.

Team

Prof. Florian Fastenrath took up the position of the junior professorship in June 2025. He leads the research group 'Political Economy of Inequality'. Bjarne Behrens and Philippa Everz joined the team as doctoral researchers in October 2025.

Detailed information about the staff members of the research group is available on the team website.

Team

Projects

  • Akzeptanzbedingungen einer Vermögenssozialpolitik [Conditions of Acceptance for a Wealth Social Policy] | Part of the collaborative research centre of the German Institute for Interdisciplinary Social Policy Research (DIFIS-SOFO) | Collaboration with SOCIUM, University of Bremen

Publications

  • 2026
  • #In book
  • #RG Fastenrath
Fastenrath, Florian

Fastenrath, Florian

Financialization

In: Stockemer, Daniel; Sawyer, Stephen; Gagnon, Audrey (ed.): IPSA Companion to Political Science | Cham: Springer Nature | 2026 | pp. 1-5

  • #Article
  • #RG Fastenrath
  • #peer-reviewed
Fastenrath, FlorianMarx, Paul

Fastenrath, Florian / Marx, Paul

The end of the "tax taboo"? Left-wing parties and the politics of taxing the rich in Germany and the UK

This article explores why left-wing parties tend to avoid advocating higher taxes for the rich—and why they sometimes do put them on the agenda. The ‘tax taboo’ is driven by electoral calculations. Public opinion on taxing the rich is ambivalent. Narratives of taxes harming the economy are nurtured by right-wing parties and business lobbies. This discourages the left from mobilizing on the issue. However, recent campaigns by the German Social Democrats (2021) and Labour in Britain (2017) overcame this taboo with distinct pro-tax programs. Our comparative analysis traces common factors and strategic considerations of party actors. It highlights the role of policy entrepreneurs, who act as catalysts through their exceptional motivation and competence. Additionally, our case studies point to party competition as an important factor. Right-wing parties face a trilemma between the goals of balanced budgets, low taxes, and investment, making them less compelling critics of left-wing tax plans.

In: Socio-Economic Review | 2026 | pp. 1-27

  • 2025
  • #publication in media
  • #RG Fastenrath
Behrens, Bjarne

Behrens, Bjarne

Fossiles Rollback: Die Ampel hat es vorgemacht, Schwarz-Rot bringt es zu Ende

Surplus. Das Wirtschaftsmagazin | Magazine article | 2 Nov. 2025

  • #In book
  • #RG Fastenrath
Fastenrath, FlorianTrampusch, ChristineJanssen, Agnes

Fastenrath, Florian et al.

The Politics of Expectations in Local Government. (De-) Financialization Processes in the US and Germany

Local governments have increasingly embraced financial engineering in times of austerity. The characteristics and causes of this process have been examined under the concept of state financialization in a recently growing multidisciplinary literature. It remains puzzling, however, why a dramatically failed financialized approach to public finance in some cases leads to definancialization, while in others it proves to be resilient. Drawing on two comparative case studies of policy responses to crisis situations arising from the use of opaque financial instruments (swaps) at the local level in Germany and the US, this chapter examines the conditions leading to these different patterns of policy change. By bridging approaches to policy change after crisis with current research on fictional expectation formation, the chapter points to the centrality of the “politics of expectations.” Policy outcomes are the result of fierce struggles between financial experts and civil society actors to influence decision-makers’ expectations in times of fundamental uncertainty.

In: Lenel, Laetitia; Nützenadel, Alexander; Streb, Jochen; Köhler, Ingo (ed.): The Routledge Handbook of Economic Expectations in Historical Perspective | New York: Routledge | 2025 | pp. 578-598