Labor market fluctuations have long been debated in political science, with conflicting views on their impact. Some argue rising unemployment helps left-wing parties; others suggest it harms them.

This paper examines Swedish electoral data 1982-2010 and finds a clear pattern: Local job losses increase support for the Left when occurring in poorer districts, but hurt these parties elsewhere.

💡 Key Argument

Voter responses depend on asset wealth. Wealthy citizens favor policies limiting social spending during economic downturns—voting conservative.

Asset-less voters seek enhanced services during difficult times—turning to left-wing parties for support.

📍 Data & Methods

Using a panel dataset of Swedish electoral districts, we analyze how local unemployment changes affect voting patterns differently across districts with varying wealth levels.

🔍 Analysis

Contrary to expectations about partisan polarization in business cycles:

• Left-wing parties gain advantage when unemployment rises in less affluent areas

• These same parties lose support when job losses occur in wealthier districts

This nuanced relationship highlights how economic conditions interact differently with voters based on their material circumstances.

📝 Conclusion

Labor market impacts are not uniform across populations. Understanding partisan voting requires attention to asset-based cleavages alongside traditional ideological ones.