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Does Fleet Street shape politics? Estimating the Effect of Newspaper Coverage about Globalization on the Support for Unemployment Insurance

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  • Protte, Benjamin
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    Abstract

    In this paper, I quantify the role of media in the formation of support for unemployment insurance. Theory suggests that individuals who feel threatened by globalization demand compensatory policies. Using a novel method of quantitative text analysis, I derive measures on the stance to globalization for all major British newspapers between 2001 and 2005. Results of regressing individual demand for unemployment insurance on my measure of globalization-specific newspaper positions show a consistent, sizable, and significant effect. This effect is in line with theoretical predictions and is robust to the inclusion of various controls such as trade effects and to accounting for biases resulting from self-selection of readers into newspapers with similar policy attitudes.

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    File URL: https://ub-madoc.bib.uni-mannheim.de/32555/1/Protte_12%2D19.pdf
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    Bibliographic Info

    Paper provided by University of Mannheim, Department of Economics in its series Working Papers with number 12-19.

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    Date of creation: 2012
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    Handle: RePEc:mnh:wpaper:32555

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    Keywords: Globalization ; Compensation Hypothesis ; Welfare State ; Media ; Quantitative Text Analysis;

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    1. Valentino Larcinese & Riccardo Puglisi & James M. Snyder, Jr., 2008. "Partisan Bias in Economic News: Evidence on the Agenda-Setting Behavior of U.S. Newspapers," STICERD - Political Economy and Public Policy Paper Series 27, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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    12. Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
    13. Leonie A. Marks & Nicholas Kalaitzandonakes & Srinivasa Konduru, 2006. "Images of Globalisation in the Mass Media," The World Economy, Wiley Blackwell, vol. 29(5), pages 615-636, 05.
    14. Puglisi Riccardo, 2011. "Being The New York Times: the Political Behaviour of a Newspaper," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-34, April.
    15. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
    16. Facchini, Giovanni & Mayda, Anna Maria & Puglisi, Riccardo, 2009. "Illegal immigration and media exposure: Evidence on individual attitudes," CEPR Discussion Papers 7593, C.E.P.R. Discussion Papers.
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