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The effects of economic austerity on pro-sociality: Evidence from Greece

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  • Sambanis, Nicholas
  • Nikolova, Elena
  • Schultz, Anna

Abstract

The European sovereign debt crisis resulted in policies of fiscal austerity and economic downturn in Greece, marked by a prolonged period of recession and high unemployment. This article explores the social impact of the economic crisis, focusing on its effects on altruism using new household-level survey data and quasi-behavioral outcomes. We focus on the effects of joblessness, the most severe form of economic hardship imposed as a result of the crisis. Our findings reveal a strong relationship between job loss in the household and decreased altruism. We provide experimental evidence of these effects and of in-group bias in charitable giving as a result of joblessness. Our results show that joblessness intensifies survey respondents' preferences for national as opposed to foreign charities.

Suggested Citation

  • Sambanis, Nicholas & Nikolova, Elena & Schultz, Anna, 2022. "The effects of economic austerity on pro-sociality: Evidence from Greece," GLO Discussion Paper Series 1144, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1144
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    More about this item

    Keywords

    Austerity; solidarity; altruism; joblessness;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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