The effects of economic austerity on pro-sociality: Evidence from Greece

Nicholas Sambanis, Elena Nikolova and Anna Schultz
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Nicholas Sambanis: Department of Political Science, University of Pennsylvania, Philadelphia, PA, USA
Elena Nikolova: College of Interdisciplinary Studies, Zayed University, Dubai, UAE
Anna Schultz: Independent researcher

European Union Politics, 2022, vol. 23, issue 4, 567-589

Abstract: The European sovereign debt crisis resulted in policies of fiscal austerity and economic downturn in Greece, marked by a prolonged period of recession and high unemployment. This article explores the social impact of the economic crisis, focusing on its effects on altruism using new household-level survey data and quasi-behavioral outcomes. We focus on the effects of joblessness, the most severe form of economic hardship imposed as a result of the crisis. Our findings reveal a strong relationship between job loss in the household and decreased altruism. We provide experimental evidence of these effects and of in-group bias in charitable giving as a result of joblessness. Our results show that joblessness intensifies survey respondents’ preferences for national as opposed to foreign charities.

Keywords: Altruism; austerity; joblessness; solidarity (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:eeupol:v:23:y:2022:i:4:p:567-589

DOI: 10.1177/14651165221120527

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