RFPs: Economic Inequalities and their Impact on Democracy

Scope

• Economic inequalities, encompassing wealth and income inequalities (e.g., in the form of money, financial assets, or real estate), pose a significant challenge to democratic societies. Over the past decades, while between-country inequality has generally decreased, within-country inequality has risen in numerous countries as global economic growth has not been evenly distributed. This widening gap in wealth has exacerbated political polarisation and fuelled distrust in democratic institutions worldwide. These trends not only suggest correlations between these phenomena but also threaten core democratic principles such as social justice, inclusion, and equal participation and representation. For instance, extremist parties often gain traction when governments fail to protect those disadvantaged by economic changes. Research indicates that governmental shortcomings in protecting those marginalised by structural economic shifts (e.g., cuts to social security entitlements, public investment and/or tax increase) fuel the roots of populism. Understanding this cycle and the complex relationship between economic inequality and democracy is key for a functioning democratic society. Proposals are encouraged to look at the efficiency and effectiveness of public policies in addressing inequalities. For instance, examining the gap between the design and implementation phases of policies aimed at reducing economic inequalities can help better understand their impact on democracy.
• Historically, economic disparities have sometimes revitalised public participation and political engagement in various forms, such as trade unions, civic involvement, and political parties. This contrasts with contemporary trends where economic inequalities often correlate with disinterest or even rejection of democracy. Hence, there is a pressing need for SSH research to delve into why, how, and to what extent economic inequalities can undermine trust in democracy and broader societal structures, and how to counteract these trends. Proposals should consider diverse territorial contexts, moving beyond urban/rural dichotomies, and explore strategies to bolster democracies in these different contexts.
• Moreover, research has shown that economic inequalities, when assessed solely through economic indicators, fail to provide a comprehensive understanding of their impact on democracy. Citizens’ perceptions of economic inequalities appear to play a central role in shaping attitudes towards democratic processes and institutions. These perceptions are often exacerbated by dichotomies such as rich/poor, rural/urban, employed/unemployed, educated/uneducated, and native/immigrant. There is a lack of comparative work including citizens’ perceptions, particularly through an intersectional and intergenerational lens. Therefore, research proposals should consider perceived inequalities as an integral part of the research framework.
• Key research questions revolve around the intersection and impact of income and wealth inequalities on democratic practices. This involves exploring, for instance:
  • How do income and wealth inequalities across different geographic and territorial areas influence policy preferences of different social and age groups, notably political polarisation, voter turnout, and trust in democratic institutions and processes.
  • How perceived economic inequalities (in contrast to economic inequalities measured by quantitative indicators) influence trust and participation in democratic processes.
  • How do economic inequalities intersect with social class, racial or ethnic origin, religion or belief, sex, gender, age, disability, and citizenship/nationality in different geographic areas, and what is the cumulative impact on democratic practices.
  • What role do local media and community networks play in shaping perceptions of economic inequality across different regions, and how do these perceptions impact democratic engagement.
  • How does geographic mobility (e.g., inter-city, rural-to-urban or vice-versa, national, international, temporary, permanent) influence the transmission of economic inequalities, and how do these processes affect participation and trust in democratic institutions.
  • What strategies could address varying levels of civic engagement among people and communities from different income brackets and levels of wealth.
• The funded research should also generate knowledge on intergenerational transfers, that is, inheritances and inter-vivos gifts, (perceived) inequalities, and their impact on democracy: how do these intergenerational transfers influence wealth inequality, and thus, in line with the main subject of this call, how do they impact democracy, for instance in terms of participation or trust in institutions?
• When exploring economic inequalities, proposals should consider at least three additional intersecting dimensions of inequalities alongside economic ones, such as sex, gender, disability, social class, religion or belief, age, and racial or ethnic origins. For example, recent research across all EU Member States reveals that young men residing in regions marked by rising unemployment and perceived inequities in public institutions are inclined to view democratic principles like gender equality as challenges to their interests. Understanding these dynamics is crucial for addressing how economic inequalities intersect with democratic values and social attitudes.
• Proposals are encouraged to involve diverse disciplinary perspectives, including but not limited to economics, political economy, political science, public administration, history, (political) sociology, (social) psychology, gender studies, and public policy. Approaches that combine social science theories with data science techniques or incorporate novel mixed methodologies are encouraged.
• Proposals should involve a diverse array of stakeholders across diverse demographic groups – encompassing different age groups, genders, minority communities, persons with disabilities, and socio-economically disadvantaged populations, including representatives from trade unions, civil society organisations, social welfare bodies, and (local) government representatives.

Funding Information

• Budget (EUR) – Year 2025: 10 500 000
• Contributions: 3000000 to 3500000.

Expected Outcomes

• Projects should contribute to all of the following expected outcomes:
  • Enhanced understanding of the interplay between economic inequalities and attitudes towards democracies, achieved by adopting an intersectional perspective across local, national, and transnational levels and acknowledging varying territorial contexts.
  • Deeper insights into economic inequalities, including citizens’ own perceptions of such inequalities, across diverse demographic groups, and their impact on public participation, the shaping of attitudes for instance towards women’s and minorities’ rights, as well as trust in democratic processes.
  • Enhanced policymakers’ awareness through evidence-based policy recommendations on the relationship between economic inequalities and attitudes towards democracy, bridging research and policy by presenting data and potential solutions to foster informed discussion and adoption of targeted measures.
  • Existing data are used effectively, and new data avenues are explored to better understand and address the impacts of economic inequalities across diverse demographic groups, as well as citizen’s own perceptions of these inequalities, on democratic participation and trust in democratic institutions.
  • Novel and intersectional approaches to enhance understanding of and participation in democratic processes among economically vulnerable populations, including low- or no-income individuals, and those (at risk of) experiencing downward mobility from the middle class, integrating factors associated with social mobility and individual characteristics such as age, sex, gender, racial or ethnic origin, religion, or belief, and disability.

Eligibility Criteria

• Any legal entity, regardless of its place of establishment, including legal entities from nonassociated third countries or international organisations (including international European research organisations) is eligible to participate (whether it is eligible for funding or not), provided that the conditions laid down in the Horizon Europe Regulation have been met, along with any other conditions laid down in the specific call/topic.
• A ‘legal entity’ means any natural or legal person created and recognised as such under national law, EU law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without legal personality.
• To become a beneficiary, legal entities must be eligible for funding.
• To be eligible for funding, applicants must be established in one of the following countries:
  • the Member States of the European Union, including their outermost regions:
    • Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.
  • the Overseas Countries and Territories (OCTs) linked to the Member States:
    • Aruba (NL), Bonaire (NL), Curação (NL), French Polynesia (FR), French Southern and Antarctic Territories (FR), Greenland (DK), New Caledonia (FR), Saba (NL), Saint Barthélemy (FR), Sint Eustatius (NL), Sint Maarten (NL), St. Pierre and Miquelon (FR), Wallis and Futuna Islands (FR).
  • countries associated to Horizon Europe;
    • Albania, Armenia, Bosnia and Herzegovina, Canada, Faroe Islands, Georgia, Iceland, Israel, Kosovo, Moldova, Montenegro, New Zealand, North Macedonia, Norway, Serbia, Tunisia, Türkiye, Ukraine, United Kingdom.

For more information, visit EC.