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The Effects of Local Economic Conditions on Confidence in Key Institutions and Interpersonal Trust after the Great Recession

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  • Lindsay A. Owens
  • Karen S. Cook

Abstract

The effects of recessions on social and political attitudes are likely smaller than the effects on employment, income, and wealth, but relatively modest aggregate effects may be masking differences in attitudes between individuals who live in areas most and least affected by recessions. To investigate social and political attitudes in geographical context, we exploit a new data source that matches individuals to their county of residence to analyze whether changing economic conditions at the county level are associated with changing confidence in major social institutions and with changing levels of interpersonal trust. We find that individuals in particularly affected counties are more likely to decrease their support for organized labor and the federal government. County-level hardship does not appear to be associated with changes in interpersonal measures of trust, however, suggesting that two very different processes may be at play.

Suggested Citation

  • Lindsay A. Owens & Karen S. Cook, 2013. "The Effects of Local Economic Conditions on Confidence in Key Institutions and Interpersonal Trust after the Great Recession," The ANNALS of the American Academy of Political and Social Science, , vol. 650(1), pages 274-298, November.
    • Handle: RePEc:sae:anname:v:650:y:2013:i:1:p:274-298
    DOI: 10.1177/0002716213500636
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    References listed on IDEAS

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    1. Betsey Stevenson & Justin Wolfers, 2011. "Trust in Public Institutions over the Business Cycle," American Economic Review, American Economic Association, vol. 101(3), pages 281-287, May.
    2. Alicia H. Munnell & Matthew S. Rutledge, 2013. "The Effects of the Great Recession on the Retirement Security of Older Workers," The ANNALS of the American Academy of Political and Social Science, , vol. 650(1), pages 124-142, November.
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