Publications
- How globalization shapes individual risk perceptions and policy preferences
- Download: PDF 1.05 MB
- by Walter, Stefanie; Maduz, Linda
- How does globalization affect individuals and their perceptions and policy preferences? This
paper uses new developments in international trade theory to propose a new way of
conceptualizing and measuring the extent to which an individual can be characterized as
globalization winner or loser. We argue that the distributional effect of exposure to
international competition is conditional on individuals’ ability. Low-ability workers exposed
to the international economy face lower wages and higher risk of unemployment, and can
therefore be characterized as globalization losers. In contrast, high-ability workers receive
higher wages when they are exposed to international competition are therefore identified as
globalization winners. To illustrate the usefulness of this approach for political scientists, the
paper revisits the debate about the determinants of social policy preferences. Using crossnational
survey data from 16 countries we show that globalization has significant and
heterogenous individual-level effects. Exposure to globalization increases risk perceptions
and demands for more income redistribution among individuals with low levels of education
(as a proxy for ability), but decreases these perceptions and demands among highly educated
respondents.
- Publication Type: WCFIA Working Paper
- Published Date: August 2009
- Field of Interest: International Economics
- Walter, Stefanie, and Linda Maduz. "How globalization shapes individual risk perceptions and policy preferences." Working Paper 2009-0015, Weatherhead Center for International Affairs, Harvard University, August 2009.
