Monday, July 3, 2023

What’s the matter with college graduates?

 Traditionally, more educated people were more likely to vote for conservative parties, even if you adjusted for income, but this relationship has weakened or reversed in many nations, including the United States.  The usual explanation for this change is more educated people are more conservative on economic issues, but more liberal on “social issues," so changes in voting pattern reflect changes in the relative importance of economic and social issues.   To quote David Leonhardt, “people vote based less on their income and more on their cultural attitudes.”  

 But there’s another possible explanation of the shift that hasn’t gotten much attention:  maybe the relationship between education and economic opinions is changing.  I considered this possibility in a paper that I presented last week at the World Congress of Sociology using data from a large number of nations included in the World Values Survey.  I considered four questions—whether incomes should be made more equal, whether government ownership of business should be increased, whether the government should take more responsibility for caring for people, and whether competition is bad because it brings out the worst in people—and computed the difference between the opinions of university graduates and others, adjusting for income (and a few other variables).  The figure shows the association of higher education with the sum of opinions on the four questions:


The horizontal red line indicates no difference:  below that line means more educated people are more conservative than less educated people, above means they are to the left of less educated people.  The relationship seems to change with per-capita GDP:  in poorer nations, university graduates are to the right of other people on these issues, but in more affluent nations, they are generally to the left.   (This relationship does not hold in the formerly socialist nations). 

Of course, the affluent nations differ from the poorer nations in a number of ways:  most obviously, they are generally in Western Europe or were settled by people from Western Europe.  So a cross-sectional relationship between per-capita GDP and the direction of opinion could reflect enduring cultural differences rather than affluence.  Fortunately, the WVS has included these questions since 1990, so it’s possible to see if the relationship has changed over the last 30 years.  Here are the changes, adjusting for differences in the nations included in different waves.  The zero point is the differences in 1990–positive values mean more leftward (or less rightward) differences relative to 1990.


For three of the four questions, the “education gap” has moved to the left--for competition, there hasn't been any clear change.  The move is pretty steady, although there seems to be some short-term variation (between the first and second waves, there was no change, or maybe even a small rightward change).  

So it seems that there’s something about “modernization” or economic development that leads to a change in the relationship between education and economic views.  What might that be?  One possibility is that affluence does increase the importance of "values" relative to immediate self-interest, but that economic opinions reflect mix of self-interest and values rather than immediate self-interest.  That is, educated people become more willing to help the poor even if that might increase their taxes, and less educated people become more willing to refuse a "handout" even if they would benefit.   Robert Lane proposed that freedom and equality were core principles of modern society, and although almost everyone accepts them in a general way, more educated people are more likely to apply them consistently--as a result, people in "the professional class" were more likely to be consistent egalitarians than people in the working class.  I think he may have been on to something.  

4 comments:

  1. Here's a fact: people aren't **actually** paying for the cost of the liberal policies they supposedly espouse. In the US in 2021 the total debt was $29,463,730 *million* dollars and total households were 129 million, for a total debt of $228,000 per household. Meanwhile the median post-tax income was $65,000 (not including property or sales taxes). So the average household would have to designate **all** of their post-tax income for 3.5 years to cover the current US Federal debt. And the US Federal debt has tripled since 2009, so most of that debt belongs to current taxpayers. I wonder how many people would be excited to work 3.5 years to pay off the debt? Or even two-thirds of that time to pay off the amount accumulated in the last 15 years?

    You say people are willing to pay more taxes for nicer policies, but obviously they're not otherwise the deficit wouldn't be tripling in 15 years. The fact is that people consistently vote against new taxes.

    It's nice that people feel nicer but other evidence suggests they still don't want to pay to be nicer. There are thousands and thousands of people living in the streets in Seattle, SF, LA and many other big cities. This problem has been growing for 20 years but people still don't want to pay the massive cost of public housing for the homeless.

    Biden wants to fix the problem. So what's the difference between a President and a Governor or a Mayor? A president can borrow. If a city, county or state build the housing, it has to be paid now - by today's taxpayers. They don't want that. If the Feds build the housing, the nice people of today can leave a debt for the people of tomorrow!

    So I think your claim that people are willing to pay more is just flat out wrong. They are willing to adopt these policies because *they aren't actually paying* for them

    Also: people today don't have experience with the disasters created by big government in the past. It wasn't that long ago all the public housing projects in the country were blown to bits; the innumerable regulations promulgated by the New Deal were unwound because they killed jobs and strangled the economy; and laws protecting unions were trashed because unions became family - and criminal - fiefdoms. But people under 40 don't have any experience with that.

    ReplyDelete
    Replies
    1. California spends billions on homeless people. More than enough to house them all. The problem isn't money, the problem is that housing in general is insanely expensive in the state due to anti-density zoning regulation, and that the government has become unable to build things. This has been a problem in the US in recent decades, every time the government builds or tries to build infrastructure, it ends up spending an absurd amount for little result. And no, this is not because of environmental regulations or labor unions, because France, Spain and Denmark have even more environmental regulations and unions, but they manage to build things, because they don't outsource everything to ridiculously paid consultants.

      Regarding debt, it is true that the US has been running higher deficits in recent years, even leaving aside the pandemic, but this is not the case in NW Europe. You also seem to misunderstand how country debt works. Usually, countries don't pay debts, they manage them. What the US really pays is the interest on the debt, and that has been really low due to low interest rates. In fact, it was negative a while ago. Now interest rates are up, but it's still a small payment, and if the theory that low interest rates are a consequence of population aging is correct, they'll go back down.

      Delete
    2. Ha ha, I'm well aware that countries don't repay debt!! :) That's the exact point of my comment: they acquire debt and never pay it off - not only do they not pay it off but it continues to grow much faster than the population - because the public doesn't want to shoulder the burden.

      I'm not sure what CA is spending its money on but people are living in boxes so it's not spending it very effectively. At this point CA has pretty much messed its nest so badly it will take decades to fix. The longer people are homeless the less likely they'll ever be productive again and many of the people are already far too old for that anyway.

      The reason I came back by today was to share this link:

      https://www.seattletimes.com/seattle-news/homeless/after-months-of-delays-seattle-gets-first-rv-safe-parking-lot/

      Sorry but this is just hilarious. It's taken ten years for Seattle leadership to get A PARKING LOT FOR HOMELESS RVS.

      I'm not laughing at the poor homeless people, but rather at the stupendous incompetence of the Seattle city bureaucracy to even get a parking lot. THAT is what you get with massive government.

      Delete
  2. BTW, net Federal interest payments were $475B in 2022. With 129M households, that's an average $3,682 per household just to cover the interest payments on the Federal debt. Note in the data provide above that the median household income is $71K, and the after tax income is $65K, so the median household pays a net $6K in Federal taxes - and well over half of that will go to service the debt! (I realize I'm mixing medians and means but in this case it doesn't much matter)

    ReplyDelete