%0 Report %A Siedler, Thomas %T Family and Politics: Does Parental Unemployment Cause Right-Wing Extremism? %D 2006 %8 2006 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 2411 %U https://www.iza.org/publications/dp2411 %X 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. %K intergenerational links %K instrumental variable %K unemployment %K right-wing extremism %K panel estimators %K matching