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Political Support in Hard Times: Do People Care about National Welfare?

  • Friedrichsen, Jana
  • Zahn, Philipp

During the Great Recession mass demonstrations indicated weakened political support in Europe. We show that growing dissatisfaction reflects poor economic conditions; unemployment is particularly important. Using individual level data for 16 Western European countries for 1976-2010, we find that national economic performance even matters beyond personal economic outcomes. Finally, while effects of growth and unemployment rates are the same across demographic subsets, the effect of inflation is heterogeneous. Younger, well-educated, or working individuals put relatively higher weight on price stability than the elderly, less skilled or not working. Our findings reinforce the political importance of employment and growth policies.

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File URL: https://ub-madoc.bib.uni-mannheim.de/32076/4/Friedrichsen_%26_Zahn_12%2D12.pdf
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Paper provided by University of Mannheim, Department of Economics in its series Working Papers with number 12-12.

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Date of creation: 2012
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Handle: RePEc:mnh:wpaper:32076
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Phone: +49 621 181 1776
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  1. Martin Halla & Friedrich Schneider & Alexander Wagner, 2013. "Satisfaction with democracy and collective action problems: the case of the environment," Public Choice, Springer, vol. 155(1), pages 109-137, April.
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  11. repec:pri:cheawb:deaton_income_health_and_wellbeing_around_the_world_evidence_%20from_gall is not listed on IDEAS
  12. Falk, Armin & Kuhn, Andreas & Zweimüller, Josef, 2009. "Unemployment and Right-wing Extremist Crime," CEPR Discussion Papers 7467, C.E.P.R. Discussion Papers.
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  19. Dreher, Axel & Öhler, Hannes, 2011. "Does government ideology affect personal happiness? A test," Economics Letters, Elsevier, vol. 111(2), pages 161-165, May.
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