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Globalization and Welfare Compensation: Disentangling the Ties that Bind

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Author Info
Brian Burgoon
Abstract

Three perspectives dominate debate over the relationship between global welfare state in industrialized countries: that globalization constrains the welfare that hitherto legitimated openness, that globalization still sparks demands for welfare while opening few forces to flee or fight against it, and that openness has little effect on welfare. A closer look at the "globalization" and "welfare" aggregates on which most scholars focus, however, reveals varying politics connecting different elements of globalization and welfare that may help reconcile this debate. First, compared to general trade openness, low-wage competition may spark stronger pressure to expand and less pressure to constrain welfare compensation. Second, all kinds of openness affect vulnerable and thriving groups in ways that differ across social policies, especially training and relocation benefits compared to benefits for youth dependents and the elderly. Consequently, different faces of openness may spark predictably different politics that spur some aspects of welfare, retrench others, and have little effect on still others. Panel data for eighteen OECD countries supports this argument. © 2001 The IO Foundation and the Massachusetts Institute of Technology

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Article provided by MIT Press in its journal International Organization.

Volume (Year): 55 (2001)
Issue (Month): 3 (September)
Pages: 509-551
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Handle: RePEc:tpr:intorg:v:55:y:2001:i:3:p:509-551

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  1. 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. [Downloadable!]
    Other versions:
  2. 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. [Downloadable!]
  3. Breton, Albert & Ursprung, Heinrich, 2002. "Globalisation, Competitive Governments, and Constitutional Choice in Europe," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Thomas Eichner & Andreas Wagener, 2004. "The Welfare State in a Changing Environment," Asia-Pacific Financial Markets, Springer, vol. 11(3), pages 313-331, May. [Downloadable!] (restricted)
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  5. Kenneth Scheve & Matthew Slaughter, 2002. "Economic Insecurity and the Globalization of Production," NBER Working Papers 9339, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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