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- Title
REFORM SUPPORT IN TIMES OF CRISIS: THE ROLE OF FAMILY TIES.
- Authors
Brumm, Elias; Brumm, Johannes
- Abstract
We argue that an important determinant of voters' support for economic reform is the strength of family ties. While the 'crisis hypothesis' predicts that crises facilitate reform, we show in a political economy model that this relation can break down, and even reverse, when agents take into account the effect of reform on their family members. Applied to southern European countries with strong family ties, the model rationalizes why the extremely high (youth) unemployment following the Great Recession has not led to more substantial labor market reforms. In such countries austerity might block rather than foster additional structural reforms. ( JEL D64, D72, J48)
- Subjects
EUROPE; FAMILY relations; ECONOMIC reform; GREAT Recession, 2008-2013; UNEMPLOYMENT; ECONOMIC liberty; UNEMPLOYMENT insurance; ECONOMICS
- Publication
Economic Inquiry, 2017, Vol 55, Issue 3, p1416
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1111/ecin.12426