A panel study of over 100 countries from 1960 to 1995 finds that improvemen
ts in the standard of living predict increases in democracy, as measured by
a subjective indicator of electoral rights. The propensity for democracy r
ises with per capita GDP, primary schooling, and a smaller gap between male
and female primary attainment. For a given standard of living, democracy t
ends to fall with urbanization and with a greater reliance on natural resou
rces. Democracy has little relation to country size but rises with the midd
le-class share of income. The apparently strong relation of democracy to co
lonial heritage mostly disappears when the economic variables are held cons
tant. Similarly, che allowance for these economic variables weakens the int
erplay between democracy and religious affiliation. However, negative effec
ts from Muslim and non-religious affiliations remain intact.