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Joblessness and Perceptions about the Effectiveness of Democracy

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  • Duha Tore Altindag
  • Naci H. 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 rogue 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.

Suggested Citation

  • Duha Tore Altindag & Naci H. Mocan, 2010. "Joblessness and Perceptions about the Effectiveness of Democracy," NBER Working Papers 15994, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:15994
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    Cited by:

    1. 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).
    2. Hoda Abd El Hamid Ali Mohamed, 2013. "Scientific Advance and the Effectiveness of Democracy in Mena," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 3(11), pages 1058-1071, November.
    3. Schaltegger, Christoph A. & Weder, Martin, 2014. "Austerity, inequality and politics," European Journal of Political Economy, Elsevier, vol. 35(C), pages 1-22.
    4. Wietzke, Frank-Borge, 2014. "Pathways from jobs to social cohesion," Policy Research Working Paper Series 6804, The World Bank.
    5. Mai Dao & Prakash Loungani, 2010. "The Human Cost of Recessions; Assessing It, Reducing It," IMF Staff Position Notes 2010/17, International Monetary Fund.
    6. 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.

    More about this item

    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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