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Compensating the losers: an examination of Congressional votes on trade adjustment assistance

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  • Rickard, Stephanie J.

Abstract

Globalization intensifies political conflict between citizens whose circumstances improve from foreign trade and those whose lives deteriorate as a result of trade. To pacify these rival interests, governments may assist citizens who become unemployed due to trade. When and under what conditions will legislators fund such assistance programs? The current study addresses this question by examining Congressional roll call votes in the United States during a period of rapid economic integration (1980–2004). The analysis reveals that protrade legislators who represent relatively more exporters are more likely to vote for increased spending on Trade Adjustment Assistance (TAA) programs. Exporters and their elected representatives arguably support such expenditures to broaden the protrade coalition.

Suggested Citation

  • Rickard, Stephanie J., 2015. "Compensating the losers: an examination of Congressional votes on trade adjustment assistance," LSE Research Online Documents on Economics 88051, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:88051
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    Cited by:

    1. Rickard, Stephanie J., 2020. "Economic geography, politics, and policy," LSE Research Online Documents on Economics 104716, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    globalization; trade; votes;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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