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Political distrust amidst The Great Recession: The mitigating effect of welfare state effort

  • Original Article
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Comparative European Politics Aims and scope

Abstract

The economic crisis that erupted in Europe in 2008 has not only caused economic grievances, but hurt citizens’ trust in their national political system. By now, most research attributes this loss in political trust to governments’ failing economic achievements. This article considers if and to what extent the drop in political trust amidst The Great Recession also was connected to governments’ welfare state effort. Combining individual and country-level data in a comparative multilevel research design, this paper overall finds that in cases of sudden and severe performance setbacks for which accountability is hard to assign, trust in democratic institutions may suffer. However, political trust seems to be especially susceptible to economic performance setbacks in countries with relatively low levels of welfare state effort, suggesting that governments might blunt some of the pain of an economic crisis by providing generous welfare state services to those in need.

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Acknowledgements

For comments and suggestions, I thank participants at seminars at Institute for Social Research, Oslo, and Leuven-Montreal Winter School on Elections and Voting Behaviour 2015. In addition, I am grateful for comments from Rune Karlsen, Staffan Kumlin, Ann-Kristin Kölln, Bernt Aardal and two anonymous reviewers to various versions of this article.

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Corresponding author

Correspondence to Atle Haugsgjerd.

Appendix

Appendix

See Table 4; Figure 2.

Table 4 Descriptive statistics of the variables used in ML-estimation
Figure 2
figure 2

Checking for influential countries.

 

Model 1: country fixed effects

Model 2: partisanship control

Model 3: time lag on welfare effort

Model 4: CWED 2 measure (1)

Model 5: CWED 2 measure (2)

Fixed effects

Intercept

3.768**

(0.046)

4.027**

(0.517)

3.441**

(0.503)

4.380**

(0.221)

4.383**

(0.209)

Crisis: impact on national economy

−0.209**

(0.023)

−0.193**

(0.048)

−0.194**

(0.047)

−0.242**

(0.055)

−0.242**

(0.055)

Crisis: impact on personal situation

−0.174**

(0.018)

−0.165**

(0.025)

−0.174**

(0.022)

−0.147**

(0.030)

−0.148**

(0.032)

Household income: make ends meet

0.286**

(0.012)

0.270**

(0.020)

0.286**

(0.018)

0.243**

(0.021)

0.244**

(0.021)

Education (ref: basic education)

          

 Secondary education

0.050

(0.040)

0.073

(0.083)

0.040

(0.076)

0.160

(0.098)

0.160

(0.098)

 Higher education

0.311**

(0.041)

0.361**

(0.094)

0.300**

(0.090)

0.470**

(0.115)

0.471**

(0.115)

Age

0.006*

(0.001)

0.008**

(0.001)

0.007**

(0.002)

0.008**

(0.002)

0.008**

(0.002)

Male

−0.002

(0.027)

0.027

(0.039)

−0.003

(0.041)

0.074

(0.049)

0.073

(0.049)

Government distance

  

−0.210**

(0.030)

  

−0.234**

(0.044)

−0.233**

(0.044)

Employment status (ref: manual worker)

 Self-employed

0.223**

(0.058)

0.209**

(0.079)

0.241**

(0.079)

0.179+

(0.092)

0.178+

(0.092)

 Managers

0.425**

(0.053)

0.427**

(0.076)

0.469**

(0.079)

0.435**

(0.106)

0.433**

(0.105)

 Other white collars

0.226**

(0.050)

0.260**

(0.068)

0.264**

(0.068)

0.334**

(0.081)

0.333**

(0.081)

 House person

0.148*

(0.059)

0.141+

(0.076)

0.148**

(0.057)

0.098

(0.082)

0.097

(0.082)

 Unemployed

−0.077

(0.055)

−0.091

(0.070)

−0.078

(0.061)

−0.054

(0.097)

−0.056

(0.097)

 Retired

0.130**

(0.050)

0.117+

(0.067)

0.128*

(0.063)

0.116

(0.072)

0.117

(0.073)

 Students

0.603**

(0.061)

0.566**

(0.085)

0.607**

(0.086)

0.493**

(0.113)

0.493**

(0.113)

 Clarity of responsibility

  

−0.464

(0.685)

−0.425

(0.667)

    

 Age of democracy

  

0.013

(0.010)

0.015

(0.009)

    

 Welfare effort

  

0.002

(0.004)

      

 Welfare effort (2009)

    

0.004

(0.004)

    

 Total generosity index CWED 2

      

0.020

(0.023)

  

 Unemployment generosity index CWED 2

        

−0.062

(0.061)

Welfare effort * Crisis: per. sit.

  

0.001+

(0.001)

      

Welfare effort (2009) * Crisis: per. sit.

    

0.001*

(0.000)

    

Total gen. CWED 2 * Crisis: per. sit.

      

0.015*

(0.006)

  

Unemployment gen. CWED 2 * Crisis: per. sit.

        

0.031**

(0.012)

Random effects

Individual variance

  

4.061**

(0.124)

4.128**

(0.130)

3.943**

(0.147)

3.943**

(0.147)

Country variance

  

0.449**

(0.090)

0.436**

(0.082)

0.401**

(0.138)

0.381**

(0.112)

Slope variance: Crisis: per. sit.

  

0.003**

(0.003)

0.003**

(0.002)

0.001**

(0.003)

0.001**

(0.002)

Slope variance: Crisis: nat. eco.

  

0.035**

(0.012)

0.037**

(0.012)

0.020**

(0.011)

0.020**

(0.011)

−2LogLikelihood

  

−41,345.084

−52,318.918

−24,994.21

−24,993.908

N

24,589

 

19,578

24,589

11,923

11,923

  1. Standard errors in parentheses.
  2. + p < 0.10, * p < 0.05, ** p < 0.01.
 

Model 6: alternative channel (1)

Model 7: alternative channel (2)

Model 8: alternative channel (3)

Model 9: alternative channel (4)

Model 10: no weights

Fixed effects

Intercept

3.456**

(0.512)

3.448**

(0.510)

3.442**

(0.511)

3.449**

(0.510)

3.456**

(0.486)

Crisis: impact on national economy

−0.194**

(0.048)

−0.158+

(0.090)

−0.196**

(0.047)

−0.139

(0.130)

−0.199**

(0.045)

Crisis: impact on personal situation

−0.215**

(0.039)

−0.174**

(0.023)

−0.089

(0.057)

−0.174**

(0.023)

−0.179**

(0.021)

Household income: make ends meet

0.286**

(0.018)

0.286**

(0.018)

0.286**

(0.018)

0.286**

(0.018)

0.284**

(0.012)

Education (ref: basic education

          

 Secondary education

0.040

(0.076)

0.040

(0.077)

0.040

(0.077)

0.040

(0.077)

0.055

(0.040)

 Higher education

0.300**

(0.090)

0.301**

(0.090)

0.301**

(0.090)

0.301**

(0.090)

0.311**

(0.041)

Age

0.007**

(0.002)

0.007**

(0.002)

0.007**

(0.002)

0.007**

(0.002)

0.007**

(0.001)

Male

−0.003

(0.041)

−0.003

(0.041)

−0.003

(0.041)

−0.003

(0.041)

−0.003

(0.027)

Employment status (ref: manual worker)

          

 Self-employed

0.241**

(0.079)

0.242**

(0.079)

0.241**

(0.079)

0.242**

(0.079)

0.221**

(0.058)

 Managers

0.469**

(0.079)

0.468**

(0.079)

0.468**

(0.079)

0.469**

(0.079)

0.424**

(0.053)

 Other white collars

0.264**

(0.068)

0.264**

(0.068)

0.264**

(0.068)

0.264**

(0.068)

0.227**

(0.050)

 House person

0.146*

(0.057)

0.146*

(0.057)

0.146*

(0.057)

0.146*

(0.057)

0.150*

(0.059)

 Unemployed

−0.080

(0.061)

−0.081

(0.061)

−0.081

(0.061)

−0.081

(0.061)

−0.074

(0.055)

 Retired

0.128*

(0.063)

0.128*

(0.063)

0.128*

(0.063)

0.128*

(0.063)

0.133**

(0.050)

 Students

0.606**

(0.086)

0.607**

(0.086)

0.607**

(0.086)

0.607**

(0.086)

0.605**

(0.061)

 Clarity of responsibility

−0.415

(0.664)

−0.411

(0.662)

−0.407

(0.663)

−0.410

(0.662)

−0.403

(0.638)

 Age of democracy

0.014

(0.009)

0.014

(0.009)

0.014

(0.009)

0.014

(0.009)

0.014

(0.010)

 Welfare effort

0.004

(0.004)

0.004

(0.004)

0.004

(0.004)

0.004

(0.004)

0.004

(0.005)

 Age of democracy * Crisis: per. sit.

0.001

(0.001)

        

 Age of democracy * Crisis: nat. eco.

  

−0.001

(0.002)

      

 Clarity of resp. * Crisis: per. sit.

    

−0.145

(0.096)

    

 Clarity of resp. * Crisis: nat. eco.

      

−0.097

(0.209)

  

 Welfare effort * Crisis: per. sit.

        

0.001*

(0.000)

Random effects

Individual variance

4.128**

(0.130)

4.128**

(0.130)

4.128**

(0.130)

4.128**

(0.130)

4.163**

(0.038)

Country variance

0.434**

(0.083)

0.432**

(0.083)

0.432**

(0.082)

0.432**

(0.083)

0.451**

(0.124)

Slope variance: Crisis: per. sit

0.005**

(0.003)

0.005**

(0.003)

0.005**

(0.003)

0.005**

(0.003)

0.003**

(0.003)

Slope variance: Crisis: nat. eco.

0.039**

(0.013)

0.038**

(0.014)

0.038**

(0.013)

0.038**

(0.013)

0.039**

(0.015)

−2LogLikelihood

−52,320.681

 

−52,321.033

 

−52,320.066

 

−52,321

 

−52,508.721

 

N

24,589

 

24,589

 

24,589

 

24,589

 

24,589

 
  1. Standard errors in parentheses.
  2. + p < 0.10, * p < 0.05, ** p < 0.01.

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Haugsgjerd, A. Political distrust amidst The Great Recession: The mitigating effect of welfare state effort. Comp Eur Polit 16, 620–648 (2018). https://doi.org/10.1057/s41295-017-0089-7

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  • DOI: https://doi.org/10.1057/s41295-017-0089-7

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