Social distress and economic integration

Walter Hyll and Lutz Schneider

No 21/2016, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: We analyze whether social distress from income comparisons affects attitudes towards the integration of economies. Using Germany’s division as natural experiment, we find that East Germans’ feelings of relative deprivation with respect to better-off West Germans led to significantly more support for the upcoming German re-unification.

Keywords: relative deprivation; economic integration; merger of populations; social comparisons; natural experiment (search for similar items in EconPapers)
JEL-codes: D31 F15 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:iwh-21-16

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