@TechReport{iza:izadps:dp2411, author={Siedler, Thomas}, title={Family and Politics: Does Parental Unemployment Cause Right-Wing Extremism?}, year={2006}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={2411}, url={https://www.iza.org/publications/dp2411}, abstract={Recent years have witnessed a rise in right-wing extremism among German youth and young adults. This paper investigates the extent to which the experience of parental unemployment during childhood affects young people’s far right-wing attitudes and xenophobia. Estimates from three different German data sets show a positive relationship between growing up with unemployed parents and right-wing extremism, with xenophobia in particular. This paper uses differences in unemployment levels between East and West Germany, both before and after reunification, to investigate a causal relationship. Instrumental variables estimates suggest strong and significant effects of parental unemployment on right-wing extremism. This is consistent with classical theories of economic interest and voting behaviour which predict that persons who develop feelings of economic insecurity are more susceptible to right-wing extremism and anti-foreign sentiments.}, keywords={intergenerational links;instrumental variable;unemployment;right-wing extremism;panel estimators;matching}, }