The Structural Transformation of the Public Space: High-Street Changes and Populism

Stephane Wolton, Samira Gasimova, Ricardo Paccioretti and Giuseppe Palladino

No 19932, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The high street serves more than a commercial function. It is the heart of a community. Some of the outlets that line our streets play an important social role, they are third places, communal places beyond work and home. We proxy third places with independent consumer outlets and study how their presence affects the electoral fortune of the UK Independent Party (UKIP), the main populist party in England in our time period (2011-19). Employing both a panel approach and an IV strategy, we find that a decrease in the number of independent consumer outlets yields an increase in the vote share of UKIP. Additional tests indicate that this electoral effect is due in part to the social role played by independent consumer outlets and that the phenomenon we study is distinct from previous cultural explanations for the rise of populists. Analyses of survey data suggest that residential sorting is unlikely to be the main driver behind our electoral results, whereas a loss of social capital in communities where third places disappear is a more plausible mechanism.

Keywords: Community; Social capital (search for similar items in EconPapers)
JEL-codes: D72 L81 L84 Z10 (search for similar items in EconPapers)
Date: 2025-02
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