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

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  • Ehrlich, Sean D.

Abstract

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.

Suggested Citation

  • Ehrlich, Sean D., 2010. "Who Supports Compensation? Individual Preferences for Trade-Related Unemployment Insurance," Business and Politics, Cambridge University Press, vol. 12(1), pages 1-22, April.
    • Handle: RePEc:cup:buspol:v:12:y:2010:i:01:p:1-22_00
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    Cited by:

    1. Stephanie J. Rickard, 2015. "Compensating the Losers: An Examination of Congressional Votes on Trade Adjustment Assistance," International Interactions, Taylor & Francis Journals, vol. 41(1), pages 46-60, January.
    2. Rickard, Stephanie J., 2015. "Compensating the losers: an examination of Congressional votes on trade adjustment assistance," LSE Research Online Documents on Economics 88051, London School of Economics and Political Science, LSE Library.
    3. David H. Bearce & Brendan J. Connell, 2023. "Government compensation and citizen support for immigration openness," Economics and Politics, Wiley Blackwell, vol. 35(1), pages 5-27, March.

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