Satisfaction with democracy: when government by the people brings electoral losers and winners together

The last decade has witnessed the raise of populist parties and a number of actors that question liberal democracy. Many explanations of this rely on dissatisfied citizens. We ask in this paper whether and how institutions allowing citizens to participate in policy-making affects differences in democratic satisfaction between varying representative contexts as well as between electoral winners and losers. To do so, we first develop a measure of sub-national direct democracy and then use it together with extensive survey data to investigate how direct democracy is associated with citizens evaluation of their democratic system. We conclude that direct democracy does not make people more satisfied in general but rather that it closes the 'satisfaction-gap' between electoral winners and losers. In contrast to previous research we demonstrate that this mechanism holds across different representative systems.