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Growing Up in a Recession: Beliefs and the Macroeconomy

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  • Giuliano, Paola
  • Spilimbergo, Antonio

Abstract

Do generations growing up during recessions have different socio-economic beliefs than generations growing up in good times? We study the relationship between recessions and beliefs by matching macroeconomic shocks during early adulthood with self-reported answers from the General Social Survey. Using time and regional variations in macroeconomic conditions to identify the effect of recessions on beliefs, we show that individuals growing up during recessions tend to believe that success in life depends more on luck than on effort, support more government redistribution, but are less confident in public institutions. Moreover, we find that recessions have a long-lasting effect on individuals’ beliefs.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7399.

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Date of creation: Aug 2009
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Handle: RePEc:cpr:ceprdp:7399

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Keywords: belief formation; macroeconomic shocks; recession; role of the governement;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Entry on the labor market and social beliefs: the impact of recessions
    by Economic Logician in Economic Logic on 2009-09-23 14:19:00
  2. Recessioner sätter mentala spår
    by nonicoclolasos in Nonicoclolasos on 2009-08-26 06:23:02
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Alessandro Bucciol & Luca Zarri, 2013. "Financial Risk Aversion and Personal Life History," Working Papers 05/2013, University of Verona, Department of Economics.
  2. Andreas Kuhn, 2010. "Demand for redistribution, support for the welfare state, and party identification in Austria," Empirica, Springer, vol. 37(2), pages 215-236, May.
  3. Rafael Di Tella & Juan Dubra & Robert MacCulloch, 2008. "A Resource Belief-Curse? Oil and Individualism," NBER Working Papers 14556, National Bureau of Economic Research, Inc.
  4. Rafael Di Tella & Ignacio Franceschelli, 2011. "Government Advertising and Media Coverage of Corruption Scandals," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 119-51, October.
  5. Madestam, Andreas & Yanagizawa-Drott, David, 2012. "Shaping of the Nation: The Effect of Fourth of July on Political Preferences and Behavior in the United States," Working Paper Series rwp12-034, Harvard University, John F. Kennedy School of Government.
  6. Beartice Brunner & Andreas Kuhn, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals’s Long-Run Wage Profiles," NRN working papers 2009-29, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  7. Andreas Kuhn, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," IEW - Working Papers 440, Institute for Empirical Research in Economics - University of Zurich.
  8. Brunner, Beatrice & Kuhn, Andreas, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals' Long-Run Wage Profiles," IZA Discussion Papers 4601, Institute for the Study of Labor (IZA).
  9. Gunther Tichy, 2010. "War die Finanzkrise vorhersehbar?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(4), pages 356-382, November.
  10. Kuhn, Andreas, 2011. "In the eye of the beholder: Subjective inequality measures and individuals' assessment of market justice," European Journal of Political Economy, Elsevier, vol. 27(4), pages 625-641.
  11. Marc Sangnier, 2009. "Does trust favor macroeconomic stability?," PSE Working Papers halshs-00575021, HAL.
  12. Beatrice Brunner & Andreas Kuhn, 2009. "To shape the future: How labor market entry conditions affect individuals' long-run wage profiles," IEW - Working Papers 457, Institute for Empirical Research in Economics - University of Zurich.
  13. Andreas Kuhn, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," NRN working papers 2009-17, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  14. Mathieu Couttenier & Marc Sangnier, 2012. "Living in the Garden of Eden: Mineral Resources Foster Individualism," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 12.05, Université de Lausanne, Faculté des HEC, DEEP.
  15. Arnstein Aassve & Elena Cottini & Agnese Vitali, 2013. "Youth Vulnerability in Europe during the Great Recession," Working Papers 057, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
  16. Corneo, Giacomo & Neher, Frank, 2012. "Income Inequality and Self-Reported Values," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 382, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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