How does economic hardship affect social preferences? Do people feel more solidarity with one another, as often happens after natural disasters? Or does it reduce pro-sociality by making social divisions more salient? We address these questions by analysing the social effects of economic...

The European debt crisis gave rise to policies of fiscal austerity designed to instill discipline and return economies to growth after a short-lived period of structural adjustment. Greece received several bailouts conditional on implementing severe spending cuts and structural reforms. These...