This Website has a limited use of cookies. By using this website, you are agreeing to the terms and conditions listed in our data protection policy. Read more

Working Paper No. 1521

Coming Together or Coming Apart? Crises, Uncertainty and Tolerance

Working Paper
Reference
Berggren, Niclas, Andreas Bergh and Therese Nilsson (2025). “Coming Together or Coming Apart? Crises, Uncertainty and Tolerance”. IFN Working Paper No. 1521. Stockholm: Research Institute of Industrial Economics (IFN).

Authors
Niclas Berggren, Andreas Bergh, Therese Nilsson

Uncertainty affects people in various ways. It is frequently found to hinder investment and production in the economic sphere. In this study, we examine the empirical relationship between uncertainty and tolerance toward Muslims and Jews. Does uncertainty make people more or less tolerant? This question is particularly relevant given the prevalence of pandemics, wars, and financial crises.

We investigate this relationship using the World Uncertainty Index, which measures the frequency of the word “uncertain” (and its variants) in The Economist Intelligence Unit country reports. By analyzing quarterly data from up to 56 countries between 1990 and 2020, we link country-level uncertainty to approximately 227,000 individual responses from the World Values Survey/European Values Study regarding whether respondents would like to have Jews or Muslims as neighbors. Leveraging the precise timing of survey interviews, we relate individual attitudes to prevailing uncertainty levels.

Our results indicate a positive relationship between uncertainty and both tolerance indicators. Thus, for those concerned with attitudes toward minorities often subjected to prejudice, calm periods may pose greater risks to tolerance than volatile periods.