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Public Finance And Individual Preferences Over Globalization Strategies

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  • GORDON H. HANSON
  • KENNETH SCHEVE
  • MATTHEW J. SLAUGHTER

Abstract

Do preferences toward globalization strategies vary across public-finance regimes? In this paper, we use data on individual preferences toward immigration and trade policy to examine how pre-tax and post-tax cleavages differ across globalization strategies and state fiscal jurisdictions. High exposure to immigrant fiscal pressures reduces support for freer immigration among U.S. natives, especially the more skilled. The magnitude of this post-tax fiscal cleavage is comparable to the pre-tax labor-market effects of skill itself. There is no public-finance variation in opinion over trade policy, consistent with U.S. trade policy having negligible fiscal-policy impacts. Public finance thus appears to shape opinions toward globalization strategies. Copyright 2007 Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics & Politics.

Volume (Year): 19 (2007)
Issue (Month): 1 (03)
Pages: 1-33

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Handle: RePEc:bla:ecopol:v:19:y:2007:i:1:p:1-33

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  1. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, July.
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  3. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 22-64, January.
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  7. Kevin H. O'Rourke & R. Sinnott, 2003. "Migration Flows: Political Economy of Migration and the Empirical Challenges," Trinity Economics Papers 20036, Trinity College Dublin, Department of Economics.
  8. Anna Maria Mayda, 2004. "Who is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," Development Working Papers 187, Centro Studi Luca d\'Agliano, University of Milano.
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  14. Hanson, Gordon H. & Slaughter, Matthew J., 2002. "Labor-market adjustment in open economies: Evidence from US states," Journal of International Economics, Elsevier, vol. 57(1), pages 3-29, June.
  15. Anna Maria Mayda (Georgetown University) and Dani Rodrik (Harvard University), 2005. "Why are some people (and countries) more protectionist than others?," Working Papers gueconwpa~05-05-11, Georgetown University, Department of Economics.
  16. Jens Hainmueller & Michael J. Hiscox, 2005. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," Others 0505013, EconWPA.
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