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Joblessness and Perceptions about the Effectiveness of Democracy

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  • Duha Altindag
  • Naci Mocan

Abstract

Using micro data on more than 130,000 individuals from 69 countries, we analyze the extent to which joblessness of the individuals and the prevailing unemployment rate in the country impact perceptions of the effectiveness of democracy. We find that personal joblessness experience translates into negative opinions about the effectiveness of democracy and it increases the desire for a rouge leader. Evidence from people who live in European countries suggests that being jobless for more than a year is the source of discontent. We also find that well-educated and wealthier individuals are less likely to indicate that democracies are ineffective, regardless of joblessness. People's beliefs about the effectiveness of democracy as system of governance are also shaped by the unemployment rate in countries with low levels of democracy. The results suggest that periods of high unemployment and joblessness could hinder the development of democracy or threaten its existence.
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  • Duha Altindag & Naci Mocan, 2010. "Joblessness and Perceptions about the Effectiveness of Democracy," Journal of Labor Research, Springer, vol. 31(2), pages 99-123, June.
  • Handle: RePEc:spr:jlabre:v:31:y:2010:i:2:p:99-123
    DOI: 10.1007/s12122-010-9089-y
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    Cited by:

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    2. Mai Dao & Prakash Loungani, 2010. "The Human Cost of Recessions; Assessing It, Reducing It," IMF Staff Position Notes 2010/17, International Monetary Fund.
    3. Mcleod,Catriona & Wietzke,Frank-Borge, 2013. "Jobs, wellbeing, and social cohesion : evidence from value and perception surveys," Policy Research Working Paper Series 6447, The World Bank.
    4. Christoph A. Schaltegger & Martin Weder, 2013. "Will Europe Face A Lost Decade? A Comparison With Japan's Economic Crisis," CREMA Working Paper Series 2013-03, Center for Research in Economics, Management and the Arts (CREMA).
    5. Schaltegger, Christoph A. & Weder, Martin, 2014. "Austerity, inequality and politics," European Journal of Political Economy, Elsevier, vol. 35(C), pages 1-22.
    6. Wietzke, Frank-Borge, 2014. "Pathways from jobs to social cohesion," Policy Research Working Paper Series 6804, The World Bank.
    7. OUEGHLISSI, Rim & DERBALI, Ahmed, 2021. "Democracy, Corruption and Unemployment: Empirical Evidence from Developing Countries," MPRA Paper 107535, University Library of Munich, Germany.

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    More about this item

    Keywords

    Unemployment duration; Democracy; Education; Development; World Values Survey; J2; O1; P1;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P1 - Economic Systems - - Capitalist Systems

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