The predictors of economic sophistication: Media, interpersonal communication and negative economic experiences

Abstract

In analogy to political sophistication, it is imperative that citizens have a certain level of economic sophistication, especially in times of heated debates about the economy. This study examines the impact of different influences (media, interpersonal communication and personal experiences) on learning effects about the economy. We conducted a national two-wave panel survey and a media content analysis in Denmark. Media effects were examined through integrating the results of the content analysis (in which articles were coded for the presence of the economic consequences frame) with the panel survey. Results showed that exposure to economic consequences frames in the media and interpersonal communication about the economy had a significant positive influence on learning about the economy. Having negative experiences with the economy exerts significant negative influence on learning. Interestingly, extensive interpersonal communication and negative experiences with the economy dampen media effects on learning about the economy. The study contributes to the literature on the cognitive effects of media and of interpersonal communication, as well as in media dependency theory.