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Unemployment, Immigration, and Populism

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  • Chen, Shuai

    (University of Leicester)

Abstract

This paper examines how unemployment and cultural anxiety have triggered different dimensions of the current populism in the United States. Specifically, I exploit the Great Recession (GR) and the 2014 Northern Triangle immigrant influx (IM) to investigate the effects of recent unemployment and unauthorized immigration on attitudes related to populism. I find that recent unemployment during GR, rather than existing unemployment from before GR, increased the probability of attitudes against wealthy elites by 15 percentage points (PP). Such attitudes are connected with left-wing populism. I identify perceived economic unfairness as a mechanism through which recent unemployment drove left-wing populism. However, cultural anxiety rather than economic distress more likely led to the over 10 PP rise in the probability of anti-immigration attitudes during IM. These attitudes are related to right-wing populism. This study intentionally links distinct economic and cultural driving forces, respectively, to different types of populism, while still accounting for their potential interaction effects. This strategy facilitates disentangling the economic and cultural triggers of the currently surging populism.

Suggested Citation

  • Chen, Shuai, 2023. "Unemployment, Immigration, and Populism," IZA Discussion Papers 16642, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp16642
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    More about this item

    Keywords

    populism; unemployment; immigration; Great Recession;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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