Did austerity cause Brexit?

Publication type

Journal Article

Author

Publication date

November 15, 2019

Summary:

This paper documents a significant association between the exposure of an individual or area to the UK government's austerity-induced welfare reforms begun in 2010, and the following: the subsequent rise in support for the UK Independence Party, an important correlate of Leave support in the 2016 UK referendum on European Union membership; broader individual-level measures of political dissatisfaction; and direct measures of support for Leave. Leveraging data from all UK electoral contests since 2000, along with detailed, individual-level panel data, the findings suggest that the EU referendum could have resulted in a Remain victory had it not been for austerity.

Published in

American Economic Review

Volume and page numbers

Volume: 109 , p.3 -3

DOI

https://doi.org/10.1257/aer.20181164

ISSN

28282

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