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Globalization and Welfare Compensation: Disentangling the Ties that Bind

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  • Burgoon, Brian
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    Abstract

    The relationship between economic openness and welfare policies inindustrialized countries has long been of interest to and increasinglydivides students of politics and economics. Several lines of researchonce suggested that greater openness poses economic risks that inspiredemands for welfare policies as compensation, such that openness andwelfare are mutually reinforcing, at least for some countries and times.With the ood of attention to globalization, however, thisconventional wisdom has given way to disagreement. Some scholars worrythat globalization has unleashed political and economic forces such asexit opportunities for investors that constrain the very compensationthat legitimates it. Others counter that openness still inspires demandsfor welfare while opening few incentives to abandon generous welfaresettings, because welfare can improve factor productivity, isinseparable from other investment attractions, or underlies corporatistbargains that buy labor peace. Still others suggest thatglobalization ssupposed positive and negative effects for welfare are overstated,because openness is less extensive and poses less risk than previouslybelieved or is dwarfed by the thicket of domestic politics surroundingwelfare states. All sides of this debate back their claims with an arrayof logic and evidence, both qualitative and increasingly carefulquantitative study.

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    Bibliographic Info

    Article provided by Cambridge University Press in its journal International Organization.

    Volume (Year): 55 (2001)
    Issue (Month): 03 (June)
    Pages: 509-551

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    Handle: RePEc:cup:intorg:v:55:y:2001:i:03:p:509-551_44

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    Cited by:
    1. Brian Burgoon & Panicos O. Demetriades & Geoffrey R.D. Underhill, 2011. "Sources and Legitimacy of Financial Liberalization," Discussion Papers in Economics 11/45, Department of Economics, University of Leicester.
    2. Gaston, Noel & Rajaguru, Gulasekaran, 2013. "International migration and the welfare state revisited," European Journal of Political Economy, Elsevier, vol. 29(C), pages 90-101.
    3. Albert Breton & Heinrich Ursprung, 2002. "Globalisation, Competitive Governments, and Constitutional Choice in Europe," CESifo Working Paper Series 657, CESifo Group Munich.
    4. Brian Burgoon & Panicos Demetriades & Geoffrey R D Underhill, 2008. "Financial Liberalisation and Political Variables: a response to Abiad and Mody," WEF Working Papers 0039, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
    5. Paolo Liberati & Antonio Sciala, 2011. "How economic integration affects the vertical structure of the public sector," Economics of Governance, Springer, vol. 12(4), pages 385-402, December.
    6. Obinger, Herbert & Starke, Peter, 2014. "Welfare state transformation: Convergence and the rise of the supply side model," TranState Working Papers 180, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    7. Bellefeuille, Gerard, 2005. "The new politics of community-based governance requires a fundamental shift in the nature and character of the administrative bureaucracy," Children and Youth Services Review, Elsevier, vol. 27(5), pages 491-498, May.
    8. Wibbels, Erik, 2006. "Dependency Revisited: International Markets, Business Cycles, and Social Spending in the Developing World," International Organization, Cambridge University Press, vol. 60(02), pages 433-468, April.
    9. Kenneth Scheve & Matthew Slaughter, 2002. "Economic Insecurity and the Globalization of Production," NBER Working Papers 9339, National Bureau of Economic Research, Inc.
    10. Thomas Eichner & Andreas Wagener, 2004. "The Welfare State in a Changing Environment," International Tax and Public Finance, Springer, vol. 11(3), pages 313-331, 05.
    11. Protte, Benjamin, 2012. "Does Fleet Street shape politics? Estimating the Effect of Newspaper Coverage about Globalization on the Support for Unemployment Insurance," Working Papers 12-19, University of Mannheim, Department of Economics.
    12. Noel Gaston & Gulasekaran Rajaguru, 2004. "The Rise (and Fall) of Labour Market Programmes: The Role of Global and Domestic Factors," ISER Discussion Paper 0615, Institute of Social and Economic Research, Osaka University.

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