Job Loss Fears and (Extremist) Party Identification: First Evidence from Panel Data
AbstractThere is a large body of literature analyzing the relationship between objective economic conditions and voting behavior, but there is very little evidence of how perceived economic insecurity impacts on political preferences. Using seventeen years of household panel data from the German Socio-Economic Panel, we examine whether job loss fears impact on individuals’ party identification. Consistent with the deprivation theory, we find strong and robust evidence that subjective job loss fears foster affinity for parties at the far right-wing of the political spectrum. The effects are broadly comparable in direction and magnitude with the ones from objective unemployment and being out of the labor force. However, our empirical estimates do not suggest that job loss fears result in people withdrawing their support from political parties altogether or increasingly identify with extremist left-wing parties.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6996.
Length: 38 pages
Date of creation: Nov 2012
Date of revision:
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Other versions of this item:
- Ingo Geishecker & Thomas Siedler, 2012. "Job Loss Fears and (Extremist) Party Identification: First Evidence from Panel Data," SOEPpapers on Multidisciplinary Panel Data Research 511, DIW Berlin, The German Socio-Economic Panel (SOEP).
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-06 (All new papers)
- NEP-LAB-2012-12-06 (Labour Economics)
- NEP-POL-2012-12-06 (Positive Political Economics)
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