Economic insecurity has attracted growing attention in social, academic and policy circles. However, there is no consensus as to its precise definition. Intuitively, economic insecurity is multifaceted, making any comprehensive formal definition subsuming all possible aspects extremely challenging. We propose simplified a more-simplified model and then characterize a class of individual economicinsecurity measures based on variations over time in economic resources. We then apply our economic-insecurity measure to data on political preferences. In US, UK and German panel data, economic insecurity predicts political participation (the intention to vote) and notably greater support for parties on the right wing of the political spectrum. We in particular find that, conditional on current economic resources, economic insecurity predicts greater support for both Donald Trump before the 2016 US presidential election and the UK leaving the European Union in the 2016 Brexit referendum.
SOURCE: W Bossert, AE Clark, C D’Ambrosio, A Lepinteur. “Economic Insecurity and the Rise of the Right.” JEL classification, January 29, 2019.
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