Betrayed by the Elites: How Corruption Amplifies the Political Effects of Recessions

We investigate whether corruption amplifies the political effects of economic crises. Using Spanish municipal-level data and a difference-in-difference strategy, we find that local unemployment shocks experienced during Great Recession (2008–2015) increased fragmentation. This effect was four times larger in municipalities exposed to malfeasance than without history corruption. bolster this evidence by showing that, conditional on province population strata fixed effects, there is no differential pre-trends. also interaction harms two traditional main parties benefits especially new party left ( Podemos).