Economic distress, democratic quality, and satisfaction with democracy in Europe during COVID-19: A multilevel approach

Tarkan Cavusoglu, Barbara Pistoresi and Erica Poma

Economic Modelling, 2025, vol. 150, issue C

Abstract: This study examines how economic distress and democratic quality influenced individuals’ satisfaction with democracy across 27 European countries during the COVID-19 pandemic. Using multilevel mixed-effects models, we find that economic distress significantly reduced satisfaction with democracy, particularly during the pandemic period. This relationship is shaped not only by individual-level conditions but also by the severity of the pandemic at the national level, which amplifies dissatisfaction and intensifies the negative impact of economic distress. While redistributive policies, such as pandemic-related financial assistance, enhance satisfaction, they do not fully offset the adverse effects of distress. In contrast, targeted unemployment spending helps alleviate the negative impact of economic hardship, while income inequality exacerbates it. Finally, higher democratic quality and greater trust in government buffer the negative consequences of pandemic severity. These findings underscore the critical role of well-designed redistributive policies and resilient democratic institutions in maintaining public support for democracy during systemic crises.

Keywords: Satisfaction with democracy; Economic distress; Income inequality; Redistributive policies; Democratic quality; Trust in government; COVID-19 (search for similar items in EconPapers)
JEL-codes: H1 H12 I18 I38 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:150:y:2025:i:c:s0264999325001324

DOI: 10.1016/j.econmod.2025.107137

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