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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. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," NBER Working Papers 8267, National Bureau of Economic Research, Inc.
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    13. Burgoon, Brian, 2001. "Globalization and Welfare Compensation: Disentangling the Ties that Bind," International Organization, Cambridge University Press, vol. 55(03), pages 509-551, June.
    14. Senses, Mine Zeynep, 2010. "The effects of offshoring on the elasticity of labor demand," Journal of International Economics, Elsevier, vol. 81(1), pages 89-98, May.
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    17. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
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