suggest that states with a large minority presence will be less likely to support policies
that favor labor over management.
Although racial threat theory has been shown to be a viable explanation for the
behavior of the majority population, its effects may be diminishing with time. Giles and
Buckner (1993) suggest that racial threat still plays a role in influencing social policy, but
it may no longer be the central determining factor. Wilson (1980) also argues that the
significance of race has been declining over time. This paper will examine this assertion
by looking at the effects of race on unemployment insurance coverage rates over the
period between 1972 and 2002.
The political ideology of state populations should play a prominent role in
dictating levels of unemployment insurance coverage as well. Although some have
argued that socioeconomic variables such as state wealth or education are the true
predictors of state policy (Dawson and Robinson 1963), recent studies have found
otherwise. They have shown that, controlling for socioeconomic variables, state ideology
appears to be a strong indicator of public policy. Wright, Erikson, and McIver (1987)
find that states with the highest levels of self-identified liberals are more apt to introduce
liberal policies, while states that yield a more conservative ideology are more likely to
introduce conservative policies. Liberal economic polices draw heavily on Keynesian
economics and are designed to create greater economic equality. These policies contend
that the government should provide the disadvantaged with the means to compete in a
market society (Hoover 1987). Therefore, social policies that aid the less prosperous
have been linked with liberal sentiments (Wright, Erikson and McIver 1987).
Alternatively, economically conservative policies have taken a much more
laissez-faire approach to the economy. They stress individual freedom, limited
2
Convention