Skip to main content
×
Home
    • Aa
    • Aa

Globalization and Welfare Compensation: Disentangling the Ties that Bind

Abstract

Three perspectives dominate debate over the relationship between globalization and the welfare state in industrialized countries: that globalization constrains the welfare that hitherto legitimated openness, that globalization still sparks demands for welfare while opening few forces to flee or fight against it, and that openness has little effect on welfare. A closer look at the “globalization” and “welfare” aggregates on which most scholars focus, however, reveals varying politics connecting different elements of globalization and welfare that may help reconcile this debate. First, compared to general trade openness, low-wage competition may spark stronger pressure to expand and less pressure to constrain welfare compensation. Second, all kinds of openness affect vulnerable and thriving groups in ways that differ across social policies, especially training and relocation benefits compared to benefits for youth dependents and the elderly. Consequently, different faces of openness may spark predictably different politics that spur some aspects of welfare, retrench others, and have little effect on still others. Panel data for eighteen OECD countries supports this argument.

Copyright
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

James Alt , Jeffry Frieden , Michael J. Gilligan , Dani Rodrik , and Ronald Rogowski . 1996. The Political Economy of International Trade: Enduring Puzzles and an Agenda for Inquiry. Comparative Political Studies 29 (6):689717.

Robert J. Barro 1991. Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics 106 (2):407–43.

Robert Bates , Philip Brock , and Jill Tiefenthaler . 1991. Risk and Trade Regimes: Another Explanation. International Organization 45 (1):118.

Nathaniel Beck , and Jonathan N. Katz . 1995. What to Do (and Not to Do) with Time-Series-Cross-Section Data in Comparative Politics. American Political Science Review 89 (3):634–47.

Andre Blais . 1986. The Political Economy of Public Subsidies. Comparative Political Studies 19 (2):201–16.

David Cameron . 1978. The Expansion of the Public Economy. American Political Science Review 72 (4):1243–61.

Philip G. Cerny 1995. Globalization and the Changing Logic of Collective Action. International Organization 49 (4):595625.

B. Ebbinghaus , and A. Hassel . 2000. Striking Deals: Concertation in the Reform of Continental European Welfare States, Journal of European Public Policy 7 (1):4462.

Barry Eichengreen . 1999. The Global Gamble on Financial Liberalization: Reflections on Capital Mobility, National Autonomy, and Social Justice. Ethics and International Affairs 13:205–26.

Jeffry A. Frieden , and Ronald Rogowski . 1996. The Impact of the International Economy on National Policies: An Analytical Overview. In Internationalization and Domestic Politics, edited by Robert O. Keohane and Helen V. Milner , 2547. New York: Cambridge University Press.

Geoffrey Garrett . 1998. Partisan Politics in the Global Economy. New York: Cambridge University Press.

Geoffrey Garrett . 1995. Capital Mobility, Trade, and the Politics of Economic Policy. International Organization 49 (4):657–87.

Geoffrey Garrett , and Peter Lange . 1991. Political Responses to Interdependence: What's “Left”' for the Left? International Organization 45 (4):539–64

Geoffrey Garrett , and Deborah Mitchell . 2001. Globalization and the Welfare State. European Journal of Political Research 39 (2):145–77.

Gene M. Grossman , and Elhanan Helpman . 1994. Endogenous Innovation in the Theory of Growth. Journal of Economic Perspectives 8 (1):2344.

Michael J. Hiscox 2001. Class Versus Industry Cleavages: Inter-Industry Factor Mobility and the Politics of Trade. International Organization 55 (1):146.

Torben Iversen , and Thomas R. Cusack . 2000. The Causes of Welfare State Expansion: Deindustrialization or Globalization? World Politics 52 (3):313–49.

Bob Jessop . 1993. Towards a Schumpeterian Workfare State? Preliminary Remarks on Post-Fordist Political Economy. Studies in Political Economy 40 (spring):739.

Ethan Kapstein . 1996. Workers in the World Economy. Foreign Affairs 75 (3):1637.

Paul Pierson . 1996. The New Politics of the Welfare State. World Politics 48 (2):143–79.

Paul Pierson . 2000a. Three Worlds of Welfare State Research. Comparative Political Studies 33 (6/7):791821.

Dennis Quinn . 1997. The Correlates of Change in International Financial Regulation. American Political Science Review 91 (3):531–51.

Dani Rodrik . 1998. Why Do More Open Economies Have Bigger Governments? Journal of Political Economy 106 (5):9971032.

Paul M. Romer 1994. The Origins of Endogenous Growth. Journal of Economic Perspectives 8 (1):322.

Sven Steinmo . 1994. The End of Redistribution? International Pressures and Domestic Tax Policy Choices. Challenge 37 (6):918.

Wolfgang Streeck , and Philippe C. Schmitter . 1991. From National Corporatism to Transnational Pluralism: Organized Interests in the Single European Market. Politics and Society 19 (2):133–64.

Robin Stryker . 1998. Globalization and the Welfare State. International Journal of Sociology and Social Policy 18 (2/3/4):149.

Duane Swank . 1998a. Funding the Welfare State: Globalization and the Taxation of Business in Advanced Market Economies. Political Studies 46 (4):671–92.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

International Organization
  • ISSN: 0020-8183
  • EISSN: 1531-5088
  • URL: /core/journals/international-organization
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 184 *
Loading metrics...

Abstract views

Total abstract views: 460 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 28th June 2017. This data will be updated every 24 hours.