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Economic insecurity in the new wave of globalization: offshoring and the labor share under varieties of capitalism

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Author Info

  • William Milberg
  • Deborah Winkler

Abstract

Countries subject to the same degree of exposure to globalization may experience very different levels of economic insecurity depending on social support or employment protections provided by the state or even due to insurance obtained by households. We identify five varieties of industrialized countries, characterized by national levels of 'labor support' and 'strictness of employment protection,' and analyze the importance of the role of the state in mediating the impact of globalization on economic security by estimating the relation between offshoring and the labor share of income across the OECD. We find that the effect of offshoring varies across countries depending on their regulatory structure and in particular on the degree of labor market support provided by governments. Regression analysis shows that for the countries providing 'more support', offshoring has a less unfavorable or more favorable effect on the labor share of national income.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 24 (2010)
Issue (Month): 3 ()
Pages: 285-308

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Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:285-308

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Related research

Keywords: outsourcing; functional income distribution; economic security; varieties of capitalism;

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Cited by:
  1. Marika Karanassou & Hector Sala, 2012. "Distributional Consequences of Capital Accumulation, Globalisation and Financialisation in the US," Working Papers 695, Queen Mary, University of London, School of Economics and Finance.

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