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Growing Up in a Recession: Beliefs and the Macroeconomy

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Author Info

  • Giuliano, Paola

    ()
    (University of California, Los Angeles)

  • Spilimbergo, Antonio

    ()
    (International Monetary Fund)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4365.

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Length: 42 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4365

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Keywords: beliefs formation; macroeconomic shocks;

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References

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  1. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2006. "The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates," NBER Working Papers 12159, National Bureau of Economic Research, Inc.
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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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