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Who Supports Compensation? Individual Preferences for Trade-Related Unemployment Insurance

  • Ehrlich Sean D

    (Florida State University)

Registered author(s):

    The political economy of trade literature argues that the policy of compensating those who lose from trade is an important component of maintaining public support for free-trade, a linkage known as the compensation hypothesis or embedded liberalism thesis. This article tests the causal mechanisms underlying the compensation hypothesis by examining support for trade-related compensation using survey data from the United States. Expectations about the effects of trade strongly predict support for trade-related unemployment insurance, with those who expect to lose more likely to support and those who expect to gain more like to oppose, but has no influence on support for general unemployment insurance despite previous research suggesting it should.

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    File URL: http://www.degruyter.com/view/j/bap.2010.12.1/bap.2010.12.1.1289/bap.2010.12.1.1289.xml?format=INT
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    Article provided by De Gruyter in its journal Business and Politics.

    Volume (Year): 12 (2010)
    Issue (Month): 1 (April)
    Pages: 1-24

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    Handle: RePEc:bpj:buspol:v:12:y:2010:i:1:n:3
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    1. I. M. Destler, 2005. "American Trade Politics 4th Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3829, January.
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    5. Adserà, Alícia & Boix, Carles, 2002. "Trade, Democracy, and the Size of the Public Sector: The Political Underpinnings of Openness," International Organization, Cambridge University Press, vol. 56(02), pages 229-262, March.
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    7. Mansfield, Edward D. & Mutz, Diana C., 2009. "Support for Free Trade: Self-Interest, Sociotropic Politics, and Out-Group Anxiety," International Organization, Cambridge University Press, vol. 63(03), pages 425-457, July.
    8. Ruggie, John Gerard, 1982. "International regimes, transactions, and change: embedded liberalism in the postwar economic order," International Organization, Cambridge University Press, vol. 36(02), pages 379-415, March.
    9. Kenneth F. Scheve & Matthew J. Slaughter, 2001. "Globalization and the Perceptions of American Workers," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 109, January.
    10. Balcells Ventura Laia, 2006. "Trade Openness and Preferences for Redistribution: A Cross-National Assessment of the Compensation Hypothesis," Business and Politics, De Gruyter, vol. 8(2), pages 1-52, August.
    11. Kono Daniel Y, 2008. "Does Public Opinion Affect Trade Policy?," Business and Politics, De Gruyter, vol. 10(2), pages 1-21, September.
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