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Economic insecurity in the new wave of globalization: offshoring and the labor share under varieties of capitalism

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  • William Milberg
  • Deborah Winkler

Abstract

Countries subject to the same degree of exposure to globalization may experience very different levels of economic insecurity depending on social support or employment protections provided by the state or even due to insurance obtained by households. We identify five varieties of industrialized countries, characterized by national levels of 'labor support' and 'strictness of employment protection,' and analyze the importance of the role of the state in mediating the impact of globalization on economic security by estimating the relation between offshoring and the labor share of income across the OECD. We find that the effect of offshoring varies across countries depending on their regulatory structure and in particular on the degree of labor market support provided by governments. Regression analysis shows that for the countries providing 'more support', offshoring has a less unfavorable or more favorable effect on the labor share of national income.

Suggested Citation

  • William Milberg & Deborah Winkler, 2010. "Economic insecurity in the new wave of globalization: offshoring and the labor share under varieties of capitalism," International Review of Applied Economics, Taylor & Francis Journals, vol. 24(3), pages 285-308.
  • Handle: RePEc:taf:irapec:v:24:y:2010:i:3:p:285-308
    DOI: 10.1080/02692171003701479
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    References listed on IDEAS

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    Cited by:

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    2. Caraballo-Cueto Jose & Lara Juan, 2017. "Deindustrialization and Unsustainable Debt in Middle-Income Countries: The Case of Puerto Rico," Journal of Globalization and Development, De Gruyter, vol. 8(2), pages 1-11, December.
    3. Marika Karanassou & Hector Sala, 2012. "Distributional Consequences of Capital Accumulation, Globalisation and Financialisation in the US," Working Papers 695, Queen Mary University of London, School of Economics and Finance.
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    5. Michael A. Witt, 2019. "De-globalization: Theories, predictions, and opportunities for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1053-1077, September.
    6. Marika Karanassou & Héctor Sala, 2020. "Distributional Consequences of Technology, Trade Globalisation and Financialisation in the US," The Economic and Social Review, Economic and Social Studies, vol. 51(2), pages 275-303.

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