Growing Up in a Recession: Beliefs and the Macroeconomy

Paola Giuliano () and Antonio Spilimbergo
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Paola Giuliano: University of California, Los Angeles

No 4365, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Do generations growing up during recessions have different socio-economic beliefs than generations growing up in good times? We study the relationship between recessions and beliefs by matching macroeconomic shocks during early adulthood with self-reported answers from the General Social Survey. Using time and regional variations in macroeconomic conditions to identify the effect of recessions on beliefs, we show that individuals growing up during recessions tend to believe that success in life depends more on luck than on effort, support more government redistribution, but are less confident in public institutions. Moreover, we find that recessions have a long-lasting effect on individuals' beliefs.

Keywords: macroeconomic shocks; beliefs formation (search for similar items in EconPapers)
JEL-codes: E60 P16 Z13 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2009-08
New Economics Papers: this item is included in nep-cba, nep-cbe and nep-mac
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Citations: View citations in EconPapers (99)

Published - published in: Review of Economic Studies, 2014, 81 (2), 787-817 (Note: Article has been retracted by the authors because the original findings cannot be replicated, likely as a result of an inadvertent coding error)

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Related works:
Working Paper: Growing Up in a Recession: Beliefs and the Macroeconomy (2009)
Working Paper: Growing Up in a Recession: Beliefs and the Macroeconomy (2009)
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