Economic Expectations and Satisfaction with Democracy: Evidence from Italy

Abstract

AbstractIn this article, we argue that individuals’ expectations about their future economic prospects are a crucial missing determinant of their degree of satisfaction with democracy. To investigate this link, we collected an original, nationally representative data set on young skilled unemployed Italians using the innovative quantitative expectations data methodology (Manski 2004). Controlling for current local labour market conditions with administrative province-level data and for a rich array of individual-level determinants, we show that those expecting greater job insecurity and instability have lower current satisfaction levels with democracy. By better conceptualizing and operationalizing individuals’ expectations, we advance the theoretical framework on satisfaction with democracy and show that expectations are an important and often overlooked determinant of the current level of satisfaction with democratic institutions.