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    Fill, Anna 2019. The Political Economy of De-liberalization. p. 15.

    Regan, Aidan and Brazys, Samuel 2018. Celtic Phoenix or Leprechaun Economics? The Politics of an FDI-led Growth Model in Europe. New Political Economy, Vol. 23, Issue. 2, p. 223.

    Rommel, Tobias and Walter, Stefanie 2018. The Electoral Consequences of Offshoring: How the Globalization of Production Shapes Party Preferences. Comparative Political Studies, Vol. 51, Issue. 5, p. 621.

    Langsæther, Peter Egge 2018. Class voting and the differential role of political values: evidence from 12 West-European countries. Journal of Elections, Public Opinion and Parties, p. 1.

    Baccaro, Lucio Benassi, Chiara and Meardi, Guglielmo 2018. Theoretical and empirical links between trade unions and democracy. Economic and Industrial Democracy, p. 0143831X1878171.

    Brazys, Samuel and Regan, Aidan 2017. The Politics of Capitalist Diversity in Europe: Explaining Ireland’s Divergent Recovery from the Euro Crisis. Perspectives on Politics, Vol. 15, Issue. 02, p. 411.

    Thewissen, Stefan and van Vliet, Olaf 2017. Competing With the Dragon: Employment Effects of Chinese Trade Competition in 17 Sectors Across 18 OECD Countries. Political Science Research and Methods, p. 1.

    Walter, Stefanie 2017. Globalization and the Demand-Side of Politics: How Globalization Shapes Labor Market Risk Perceptions and Policy Preferences. Political Science Research and Methods, Vol. 5, Issue. 01, p. 55.

    Thewissen, Stefan and Rueda, David 2017. Automation and the Welfare State: Technological Change as a Determinant of Redistribution Preferences. Comparative Political Studies, p. 001041401774060.

    Kriesi, Hanspeter 2016. The Politicization of European Integration. JCMS: Journal of Common Market Studies, Vol. 54, Issue. , p. 32.

  • Print publication year: 2015
  • Online publication date: May 2015

5 - Globalization, Labor Market Risks, and Class Cleavages Rafaela Dancygier and Stefanie Walter


Advanced capitalist democracies face important challenges in the modern age. In addition to the domestic changes on national labor markets (see in particular the introductory chapter of this volume, as well as Chapter 2 on the long-term consequences of structural change and Chapter 4 on occupational change in the service economy), they are also embedded in a worldwide process of increasing economic and cultural integration. This process of globalization has not only created new opportunities and considerable constraints for policy makers in democratic capitalist states. Globalization has also produced new lines of division among voters. The deep and wide-ranging processes of economic liberalization and cultural exchange have been shown to reorder preferences and priorities among the electorate and, in doing so, have shaken up existing cleavage structures (e.g., Rogowski 1989; Kitschelt and McGann 1995; Mughan and Lacy 2002; Kayser 2007; Kriesi et al. 2008; Häusermann and Walter 2010; Margalit 2011).

In this chapter, we focus on the impact of globalization on voter preferences. Similarly to the chapter by Daniel Oesch in this volume (Chapter 4), we thus contribute to the general analytical framework of the book – as developed in the introductory chapter – by explaining how structural change affects the demand-side constraints policy makers face in advanced capitalist democracies. More specifically, we consider the consequences of trade, foreign direct investment, and immigration, which have had immediate effects on both the structure of labor markets and– thereby – voter preferences in advanced capitalist democracies. As previous scholars have argued and as we discuss later, the globalization of production and the international flow of labor generate gains and losses in ways that cut both along and across traditional class cleavages, especially when such globalization has uneven sectoral effects. To identify who benefits and who loses from globalization, scholars have investigated effects on the basis of skills, industries, and occupation.

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The Politics of Advanced Capitalism
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