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Offshoring, economic insecurity, and the demand for social insurance

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Author Info
Richard G. Anderson
Charles S. Gascon

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Abstract

The fear of offshoring, particularly in services since 2000, has raised workers economic insecurity and heightened concerns over future economic globalization. Many have argued that globalization has exacerbated labor market turbulence increasing the demand for social insurance programs. The authors present a simple theoretical model establishing a connection between the threat of offshoring, economic insecurity, and the demand for social insurance. Data from the 1972-2006 General Social Survey to provides supporting empirical evidence.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2008-003.

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Date of creation: 2008
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Handle: RePEc:fip:fedlwp:2008-003

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Keywords: Globalization ; International economic integration;

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  1. David Campbell & Alan Carruth & Andrew Dickerson & Francis Green, 2007. "Job insecurity and wages," Economic Journal, Royal Economic Society, vol. 117(518), pages 544-566, 03. [Downloadable!] (restricted)
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  2. Robert C. Feenstra & Gordon H. Hanson, 1996. "Globalization, Outsourcing, and Wage Inequality," NBER Working Papers 5424, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. J. Dominitz & C. F. Manski, . "Perceptions of Economic Insecurity: Evidence from the Survey of Economic Expectations," Institute for Research on Poverty Discussion Papers 1105-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  4. Scott C. Bradford & Paul L. E. Grieco & Gary Clyde Hufbauer, 2006. "The Payoff to America from Globalisation," The World Economy, Blackwell Publishing, vol. 29(7), pages 893-916, 07. [Downloadable!] (restricted)
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