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Coming Together or Coming Apart? Crises, Uncertainty and Tolerance

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Uncertainty affects people in various ways. It is frequently found to hinder investment and production in the economic sphere. In this study, we examine the empirical relationship between uncertainty and tolerance toward Muslims and Jews. Does uncertainty make people more or less tolerant? This question is particularly relevant given the prevalence of pandemics, wars, and financial crises. We investigate this relationship using the World Uncertainty Index, which measures the frequency of the word “uncertain” (and its variants) in The Economist Intelligence Unit country reports. By analyzing quarterly data from up to 56 countries between 1990 and 2020, we link country-level uncertainty to approximately 227,000 individual responses from the World Values Survey/European Values Study regarding whether respondents would like to have Jews or Muslims as neighbors. Leveraging the precise timing of survey interviews, we relate individual attitudes to prevailing uncertainty levels. Our results indicate a positive relationship between uncertainty and both tolerance indicators. Thus, for those concerned with attitudes toward minorities often subjected to prejudice, calm periods may pose greater risks to tolerance than volatile periods.

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  • Berggren, Niclas & Bergh, Andreas & Nilsson, Therese, 2025. "Coming Together or Coming Apart? Crises, Uncertainty and Tolerance," Working Paper Series 1521, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:1521
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    References listed on IDEAS

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    1. Scott R Baker & Nicholas Bloom & Stephen J Terry, 2024. "Using Disasters to Estimate the Impact of Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(2), pages 720-747.
    2. Danilo Cascaldi-Garcia & Cisil Sarisoy & Juan M. Londono & Bo Sun & Deepa D. Datta & Thiago Ferreira & Olesya Grishchenko & Mohammad R. Jahan-Parvar & Francesca Loria & Sai Ma & Marius Rodriguez & Ilk, 2023. "What Is Certain about Uncertainty?," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 624-654, June.
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    More about this item

    Keywords

    Tolerance; Uncertainty; Risk; Jews; Muslims; Crises;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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