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Betrayed by the elites: how corruption amplifies the political effects of recessions
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We investigate whether corruption amplifies the political effects of economic crises. Using Spanish municipal-level data and a difference-in-difference strategy, we find that local unemployment shocks experienced during the Great Recession (2008-2015) increased political fragmentation. This effect was four times larger in municipalities exposed to malfeasance than in municipalities without a history of political corruption. We bolster this evidence by showing that, conditional on province and population strata fixed effects, there is no evidence of differential pre-trends. We also find that the interaction of unemployment and corruption harms the two traditional main parties and benefits especially the new party on the left (Podemos).
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SANZ, Carlos, SOLÉ OLLÉ, Albert i SORRIBAS, Pilar. Betrayed by the elites: how corruption amplifies the political effects of recessions. Comparative Political Studies. 2022. Vol. 55, núm. 7, pàgs. 1095-1129. ISSN 0010-4140. [consulta: 8 de maig de 2026]. Disponible a: https://hdl.handle.net/2445/186328