How globalization shapes individual risk perceptions and policy preferences
Publication information:
Walter, Stefanie, and Linda Maduz. (August) 2009. “How Globalization Shapes Individual Risk Perceptions and Policy Preferences.”
Abstract
How does globalization affect individuals and their perceptions and policy preferences? Thispaper uses new developments in international trade theory to propose a new way ofconceptualizing and measuring the extent to which an individual can be characterized asglobalization winner or loser. We argue that the distributional effect of exposure tointernational competition is conditional on individuals’ ability. Low-ability workers exposedto the international economy face lower wages and higher risk of unemployment, and cantherefore be characterized as globalization losers. In contrast, high-ability workers receivehigher wages when they are exposed to international competition are therefore identified asglobalization winners. To illustrate the usefulness of this approach for political scientists, thepaper revisits the debate about the determinants of social policy preferences. Using crossnationalsurvey data from 16 countries we show that globalization has significant andheterogenous individual-level effects. Exposure to globalization increases risk perceptionsand 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 educatedrespondents.