Structural change and its discontents

Abstract

This paper explores the relationship between social discontent and labour market dynamics, particularly with respect to the creation and destruction of stable jobs. By bridging studies on discontent with the literature on structural dynamics, the paper conceives the former as a signal that some countries or regions are experiencing a trajectory of structural change characterized by economic deprivation and social inequality, rooted into limited access to secure and quality jobs. If not properly addressed by policymakers to achieve greater cohesion, this trajectory may lead to irreversible economic decline. Focusing on Italy, results show that jobs destruction amplifies support for anti-elite parties while the creation of secure jobs mitigates social discontent. Policy implications highlight the need for labour market, welfare and education measures fostering structural change trajectories that are sustainable, i.e., where the interests of both vulnerable and well-off socio-economic groups are reconciled in the definition of societal policy goals.