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Offshoring, economic insecurity, and the demand for social insurance

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  • Richard G. Anderson
  • Charles S. Gascon

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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Bibliographic Info

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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References

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  1. Scott C. Bradford & Paul L. E. Grieco & Gary Clyde Hufbauer, 2006. "The Payoff to America from Globalisation," The World Economy, Wiley Blackwell, vol. 29(7), pages 893-916, 07.
  2. Schmidt, Stefanie R, 1999. "Long-Run Trends in Workers' Beliefs about Their Own Job Security: Evidence from the General Social Survey," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S127-41, October.
  3. Agell, J., 1998. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Papers 1998:17, Uppsala - Working Paper Series.
  4. David Campbell & Alan Carruth & Andrew Dickerson & Francis Green, 2008. "Job Insecurity and Wages," Studies in Economics 0813, Department of Economics, University of Kent.
  5. Slaughter, Matthew J., 2001. "International trade and labor-demand elasticities," Journal of International Economics, Elsevier, vol. 54(1), pages 27-56, June.
  6. Thomas Cusack & Torben Iversen & Philipp Rehm, 2006. "Risks at Work: The Demand and Supply Sides of Government Redistribution," Oxford Review of Economic Policy, Oxford University Press, vol. 22(3), pages 365-389, Autumn.
  7. Jeff Dominitz & Charles F. Manski, 1996. "Perceptions of Economic Insecurity: Evidence from the Survey of Economic Expectations," NBER Working Papers 5690, National Bureau of Economic Research, Inc.
  8. Feenstra, Robert C & Hanson, Gordon H, 1996. "Globalization, Outsourcing, and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 240-45, May.
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Cited by:
  1. Lars Osberg & Andrew Sharpe, 2012. "Measuring Economic Insecurity in Rich and Poor Nations," CSLS Research Reports 2012-03, Centre for the Study of Living Standards.

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