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Abstract

<p>What are the long-run political consequences of economic crises? We study the Great Recession in the United States, exploiting geographic variation in unemployment shocks. Harder-hit counties shifted toward Democratic candidates. House gains persisted through 2022, after the shock's employment effects had dissipated, while presidential gains attenuated after 2016. House gains did not track local recovery or Republican incumbency, which weighs against simple retrospective voting accounts. Harder-hit places also showed no shift toward right-wing populist candidates or movements. Instead, survey and ballot measure evidence points to economic scarring and demand for protection: residents of harder-hit places remained pessimistic about their economic prospects, even as personal finances recovered, and became more supportive of social protection. Taken together, the findings suggest that a crisis can durably reshape what affected communities demand from government after acute local labor market distress has subsided.</p>

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economic harderhit gains what shocks

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