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Social distress and economic integration

Author

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  • Hyll, Walter
  • Schneider, Lutz

Abstract

We analyze whether social distress from income comparisons affects attitudes towards the integration of economies. Using Germany’s division as natural experiment, we find that East Germans’ feelings of relative deprivation with respect to better-off West Germans led to significantly more support for the upcoming German re-unification.

Suggested Citation

  • Hyll, Walter & Schneider, Lutz, 2016. "Social distress and economic integration," IWH Discussion Papers 21/2016, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:iwh-21-16
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    Keywords

    relative deprivation; economic integration; merger of populations; social comparisons; natural experiment;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F15 - International Economics - - Trade - - - Economic Integration

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