placestats

Governing party, economic left to right vs. Old-age spending

Holds up after adjusting for income

Across 41 countries, Governing party, economic left to right and Old-age spending rise and fall together at r = -0.26 (on a scale from −1 to +1, where 0 means no link). It holds up almost unchanged when only countries with similar income (GDP per person) are compared (r = -0.26, q = 0.037, allowing for the many pairs tested).

Comparing countries across the middle half of old-age spending, 5.11% to 9.74% of GDP, governing party, economic left to right is 0.42 scale lower at the top of that range than the bottom. Comparing only countries with similar national income, the gap is 0.421 scale.

Link before adjusting (r)-0.265p = 0.094 · 41 countries
After adjusting for national income-0.261p = 0.104 · likely range [-0.53, +0.06]
p, allowing for regions0.003standard error 0.041 · 5 regions
Check for luck (q)0.037across 17,292 pairs

How to read these.r runs from −1 (one goes up as the other goes down) to +1 (they rise together), and 0 means no link. Adjusting for national income means comparing countries with the same GDP per person, so differences in wealth can’t explain the link. Income is used in percentage terms, since an extra $1,000 means more to a poor country than to a rich one. p is how likely a link this strong would be if there were really none. Below 0.05 means it is unlikely to be chance. Very small values are written in short form: 1.1e-32 means a decimal point followed by 31 zeros and then 11, so very close to zero. The likely range is where the true figure probably lies, and a range that crosses zero means the link could easily be chance. Countries in the same region tend to resemble each other, so the third figure allows for that, which gives a fairer p. The standard error is the typical size of the error in r. Finally, testing this many pairs means some will look strong by luck alone. A q below 0.05 means this link is unlikely to be one of those.

Governing party, economic left to right · scale (0 = far left, 6 = far right)link with income +0.08 · independent
Old-age spending · % of GDPlink with income +0.17 · independent

Neither of these is closely tied to national income, so adjusting for income is a real test here, not a formality.

“Link with income” is how closely each measure tracks GDP per person across countries, from −1 to +1.

Every country as a dot

Governing party, economic left to right · scale (0 = far left, 6 = far right) →Old-age spending · % of GDP →1.525.051.87%13.7%Australia: 3.82 scale (0 = far left, 6 = far right), 4.46% of GDPAustria: 3.72 scale (0 = far left, 6 = far right), 13.2% of GDPBelgium: 3.92 scale (0 = far left, 6 = far right), 10.2% of GDPBulgaria: 3.39 scale (0 = far left, 6 = far right), 8.09% of GDPCanada: 2.01 scale (0 = far left, 6 = far right), 5.59% of GDPChile: 4.39 scale (0 = far left, 6 = far right), 3.28% of GDPColombia: 5.05 scale (0 = far left, 6 = far right), 5.7% of GDPCosta Rica: 2.94 scale (0 = far left, 6 = far right), 4.58% of GDPCzechia: 2.47 scale (0 = far left, 6 = far right), 7.96% of GDPGermany: 3.66 scale (0 = far left, 6 = far right), 9.94% of GDPDenmark: 1.91 scale (0 = far left, 6 = far right), 9.27% of GDPSpain: 1.93 scale (0 = far left, 6 = far right), 10.3% of GDPEstonia: 2.2 scale (0 = far left, 6 = far right), 6.82% of GDPFinland: 1.79 scale (0 = far left, 6 = far right), 13% of GDPFrance: 3.61 scale (0 = far left, 6 = far right), 12.4% of GDPUnited Kingdom: 4.64 scale (0 = far left, 6 = far right), 7.41% of GDPGreece: 4.04 scale (0 = far left, 6 = far right), 13.6% of GDPCroatia: 3.86 scale (0 = far left, 6 = far right), 7.39% of GDPHungary: 4.33 scale (0 = far left, 6 = far right), 7.33% of GDPIreland: 3.32 scale (0 = far left, 6 = far right), 2.75% of GDPIceland: 2.99 scale (0 = far left, 6 = far right), 3.29% of GDPIsrael: 4.25 scale (0 = far left, 6 = far right), 4.92% of GDPItaly: 2.2 scale (0 = far left, 6 = far right), 13.7% of GDPJapan: 4.43 scale (0 = far left, 6 = far right), 8.29% of GDPKorea, Rep.: 4.8 scale (0 = far left, 6 = far right), 3.62% of GDPLithuania: 2.77 scale (0 = far left, 6 = far right), 6.44% of GDPLuxembourg: 3.1 scale (0 = far left, 6 = far right), 7.19% of GDPLatvia: 4.1 scale (0 = far left, 6 = far right), 7.82% of GDPMexico: 1.52 scale (0 = far left, 6 = far right), 5.11% of GDPNetherlands: 4.28 scale (0 = far left, 6 = far right), 7.19% of GDPNorway: 4.42 scale (0 = far left, 6 = far right), 8.43% of GDPNew Zealand: 2.21 scale (0 = far left, 6 = far right), 5.06% of GDPPeru: 4.2 scale (0 = far left, 6 = far right), 1.87% of GDPPoland: 2.2 scale (0 = far left, 6 = far right), 9.74% of GDPPortugal: 2.46 scale (0 = far left, 6 = far right), 11.1% of GDPRomania: 2.02 scale (0 = far left, 6 = far right), 8.18% of GDPSlovak Republic: 1.88 scale (0 = far left, 6 = far right), 7.15% of GDPSlovenia: 2.22 scale (0 = far left, 6 = far right), 9.55% of GDPSweden: 2.06 scale (0 = far left, 6 = far right), 10.1% of GDPTurkiye: 4.48 scale (0 = far left, 6 = far right), 4.88% of GDPUnited States: 4.5 scale (0 = far left, 6 = far right), 6.8% of GDPAUTCANCHLESPFINFRAGRCITAKORMEXNZLPER

best-fit line line after adjusting

Four ways to measure the link

MethodrpCountries
Standard (Pearson), not adjusted-0.2650.09441
By rank (Spearman), not adjusted-0.2800.07641
Standard (Pearson), adjusted for national income-0.2610.10441
By rank (Spearman), adjusted for national income-0.2800.08141

The rank version uses only each country’s place in line, from lowest to highest, so a few extreme countries count for less. The adjusted and unadjusted versions use the same 41 countries: those that report both measures and GDP per person. So the gap between them comes from the adjustment, not from a change in which countries are counted. Drop in the size of r after adjusting: +0.004 (a minus sign means it grew).

How solid is it?

Leaving out one country at a time, r ranges from -0.320 (without GRC) to -0.212 (without FIN). The bar above shows that range on a scale from −1 to +1, with the solid line at the full result. The single country that moves r most: GRC (-0.060).

Within each region

Countries are not separate, unrelated cases, and neighbors share a lot. A link that holds inside each region is far more believable than one that shows up only when comparing regions.

nr
Europe & Central Asia29-0.18

By income third

If the link shows up only in the richest third of countries, it is a feature of rich countries, not a general pattern.

nr
Poorest third14-0.00
Middle third13-0.55
Richest third14-0.07

By largest religious group

Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.

nr
Christians34-0.21

By official ideology

Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.

nr
No strong official ideology36-0.26

By party system

Countries grouped by a label they share, such as main religion, rather than by a number. Groups of fewer than twelve countries are not shown. These groups differ in income, region and history all at once. So a gap between them is a place to start asking questions, not an answer.

nr
No parties banned40-0.32

Without outliers (countries far outside the middle half of countries on either measure, by more than one and a half times the width of that middle half): r = -0.261 after dropping 0 countries.

Two series, one country

Both measures over the years for one country you pick. The two charts are stacked so they share only the years along the bottom.

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Over time, within countries

Everything above compares countries with each other at one moment. This section compares each country only with itself over 30years. So a link here can’t come from anything about a country that stays the same, such as its history, geography, institutions or culture.

Within countries over time, there is no link that is clearly more than chance (r = +0.118, comparing each country only with itself over the years, and each year only with the same year elsewhere). Whatever the cross-country picture shows, countries whose governing party, economic left to right moved did not tend to see their old-age spending move with it.

Across countries (adjusted)-0.261for comparison
Within countries+0.045each country vs itself
…and vs the same year elsewhere+0.118q = 0.113 · 37 countries
Year-on-year changes—q = —

293 country-years (one country in one year), 37 countries, 1990–2019, about 8 years each on average. Share of the variation that happens within countries over time: 17% for Governing party, economic left to right, 82% for Old-age spending. The margins of error allow for each country appearing many times, and for each year’s value being close to the year before.

Year-to-year changes are a cautious test, not a final answer. Looking only at changes from one year to the next removes each country’s own trends. But it also makes measurement mistakes louder, which pulls the results toward zero. A near-zero result here is weak evidence of no link, not proof.

With one measure years behind the other

0.20−0.2-60+10years Old-age spending trails Governing party, economic left to right →lag -6: r = 0.009 (n = 208)lag -5: r = 0.055 (n = 214)lag -4: r = 0.037 (n = 240)lag -3: r = 0.054 (n = 256)lag -2: r = 0.075 (n = 262)lag -1: r = 0.106 (n = 271)lag +0: r = 0.118 (n = 293)lag +1: r = 0.096 (n = 296)lag +2: r = 0.089 (n = 296)lag +3: r = 0.080 (n = 288)lag +4: r = 0.105 (n = 286)lag +5: r = 0.049 (n = 285)lag +6: r = 0.081 (n = 269)lag +7: r = 0.086 (n = 260)lag +8: r = 0.007 (n = 253)lag +9: r = 0.013 (n = 235)lag +10: r = -0.014 (n = 229)

Same year (lag 0): +0.118. A peak away from zero does not show which comes first. These series change slowly — this year’s value is close to last year’s. That makes the curve smooth and nearly symmetric, whatever produced the data. Even a sharp peak at one lag (a gap of some years) would not prove that one measure changes the other.

The data


scale (0 = far left, 6 = far right)

% of GDP
Years
Colombia COL5.055.7%2018, 2023
Korea, Rep. KOR4.83.62%2016, 2022
United Kingdom GBR4.647.41%2019, 2022
United States USA4.56.8%2018, 2023
Turkiye TUR4.484.88%2018, 2021
Japan JPN4.438.29%2017, 2022
Norway NOR4.428.43%2017, 2021
Chile CHL4.393.28%2017, 2023
Hungary HUN4.337.33%2018, 2021
Netherlands NLD4.287.19%2017, 2021
Israel ISR4.254.92%2015, 2023
Peru PER4.21.87%2016, 2023
Latvia LVA4.17.82%2018, 2021
Greece GRC4.0413.6%2019, 2021
Belgium BEL3.9210.2%2019, 2021

Coppedge, M. et al., V-Dem Dataset v16, Varieties of Democracy (V-Dem) Project; Lindberg, S. I. et al., Varieties of Party Identity and Organization (V-Party) Dataset. Read from the V-Dem Institute's vdemdata package.
OECD databases as named on each indicator: PISA, Social Expenditure Database (SOCX), Income Distribution Database, Development Assistance Committee statistics, Family Database, Government at a Glance, Corporate Tax Statistics, employment and environment statistics

Sources

Governing party, economic left to right

Economic left-right position of the main governing party

V-Dem Institute, University of Gothenburg · CC BY-SA 4.0 · updated annual (V-Dem); V-Party per election, to 2019

Where the main party in government stands on economic issues, as rated by V-Party's experts: 0 is far left (the state should run or redistribute most of the economy), 3 is the centre and 6 is far right (the market should be left alone). The main party is the one V-Party marks as the senior partner in government after each national election. It is recorded in election years only, and V-Party's data end in 2019, so the latest figure for many countries is a few years old. A one-party state has its ruling party here too: China's Communist Party is rated near the centre on economics, Cuba's near the far left. No "better" direction is set.

Old-age spending

Public spending on old-age benefits

OECD · via Our World in Data · CC BY 4.0 (OECD terms and conditions) · updated annual, except the snapshots noted per indicator

Public pensions and other benefits for older people. It mostly reflects how old a country is and how its pensions are set up. That is why its strongest link is with the share of people aged 65 and over.

How this was computed

Data used: most recent value in 2010-2025; values come from 2013–2023. To adjust for income, each measure is first predicted from GDP per person (in percentage terms, on a log scale) with a straight-line fit. Only what is left over is then compared. This is called a partial correlation. The line is drawn the standard way (ordinary least squares), which picks the line that comes closest to all the countries at once. The error margins allow for countries in the same region resembling each other, using 5 World Bank regions. The q-value corrects for testing all 17,292 pairs at once, using the Benjamini–Hochberg method. Underlying data last updated V-Dem v16; V-Party v2. How the country data works · explore Governing party, economic left to right and Old-age spending

This page shows that two measures go together. It does not show that Governing party, economic left to right changes Old-age spending, or the reverse. These figures also describe countries, not individual people. See the ecological fallacy.

More links with Governing party, economic left to right or Old-age spending