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A CESEE conundrum: low trust in government but high hopes for government-led job creation

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Abstract
OeNB Euro Survey results for ten countries in Central, Eastern and Southeastern Europe (CESEE) from 2018 indicate that a major share of respondents is disappointed with public governance. Yet, while trust in national governments is lacking, there is still a widespread belief that creating jobs is primarily a state responsibility, even 30 years after the onset of transition. As shown by a series of probit regressions, respondents are more likely to consider job creation to be above all a state responsibility if they belong to a low-income household, have comparatively little wealth and comparatively little education, rely on welfare payments, have worked for the public sector or reside outside the capital city. The views of respondents who express a lack of trust in government are also colored strongly by past economic hardship experiences. While there is, of course, a limit to how big the welfare state can get, our survey results imply that there is a case for national governments to build up buffers to be able to tide people over when incomes dry up in crisis episodes, and to invest more in developing human capital and improving social inclusion to address the concerns of marginalized societal groups.

Suggested Citation

  • Markus Eller & Thomas Scheiber, 2020. "A CESEE conundrum: low trust in government but high hopes for government-led job creation," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/20, pages 81-97.
    • Handle: RePEc:onb:oenbfi:y:2020:i:q3/20:b:5
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    File URL: https://www.oenb.at/dam/jcr:7e1236b3-eb5b-4ac9-a832-4ff5cbfe8687/05_feei_Q3_20_A-CESEE-conundrum.pdf
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    Cited by:

    1. Markus Eller & Branimir Jovanovic & Thomas Scheiber, 2021. "What do people in CESEE think about public debt?," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3/21, pages 35-58.

    More about this item

    Keywords

    public preferences; trust in government; government-led job creation; survey data; CESEE;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

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