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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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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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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
  3. Should you come out of college this year?
    by ? in SCSUScholars on 2010-01-12 01:41:00
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