Working Paper: NBER ID: w15994
Authors: 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.
Keywords: joblessness; democracy; unemployment; perceptions; economic development
JEL Codes: J20; P16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| personal joblessness (J64) | perceptions of democracy as ineffective (D72) |
| national unemployment rate (J64) | perceptions of democracy as ineffective (D72) |
| lower education levels (I24) | negative views about democracy (D72) |
| lower household incomes (G59) | negative views about democracy (D72) |