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Who is Afraid of Globalization? The Challenge of Domestic Adjustment in Europe and America

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  • Sapir, André

Abstract

The paper examines why ?globaphobia? seems to be more prevalent among labour in the United States than in Europe. It argues that globalization has generated more wealth, but also more income inequality and adjustment problems, in America than in Europe. In the United States, the median voter has lost wages and experienced rising job insecurity due to globalization. By contrast, in Europe, the welfare state has largely insulated the median voter from the pains of globalization. The paper also examines international labour mobility, the grand absentee of the current wave of globalization. Here it finds that phobia runs higher in Europe than in America. It claims that the relative generosity of Europe?s welfare state makes it less open to migration than the United States.

Suggested Citation

  • Sapir, André, 2000. "Who is Afraid of Globalization? The Challenge of Domestic Adjustment in Europe and America," CEPR Discussion Papers 2595, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2595
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    Cited by:

    1. Henk Kox & Arjan Lejour, 2005. "Regulatory heterogeneity as obstacle for international services trade," CPB Discussion Paper 49.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Koeniger, Winfried, 2002. "Defensive Innovations," IZA Discussion Papers 454, Institute of Labor Economics (IZA).
    3. Ruud de Mooij & Paul Tang, 2003. "Four futures of Europe," CPB Special Publication 49.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Daniele Checchi & Gianfranco De Simone & Riccardo Faini, 2007. "Skilled Migration, FDI and Human Capital Investment," Development Working Papers 235, Centro Studi Luca d'Agliano, University of Milano.
    5. Chung, Heejung, 2008. "Do institutions matter? Explaining the use of working time flexibility arrangements of companies across 21 European countries using a multilevel model focusing on country level determinants," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2008-107, WZB Berlin Social Science Center.
    6. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 13(4), pages 55-121.
    7. Ethier, Wilfred J., 2005. "Globalization, globalisation: Trade, technology, and wages," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 237-258.
    8. Koeniger, Winfried, 2001. "Trade, Labor Market Rigidities, and Government-Financed Technological Change," IZA Discussion Papers 241, Institute of Labor Economics (IZA).
    9. Bacchetta, Marc & Jansen, Marion, 2003. "Adjusting to trade liberalization: The role of policy, institutions and WTO Disciplines," WTO Special Studies, World Trade Organization (WTO), Economic Research and Statistics Division, volume 7, number 7.
    10. Forum Franco Allemand, 2000. "The Future of Banking in Europe," Working Papers 2000-22, CEPII research center.
    11. Wilfred J. Ethier, 2002. "Globalization, Globalisation," Tinbergen Institute Discussion Papers 02-088/2, Tinbergen Institute.
    12. Chung, Heejung, 2005. "Different paths towards Flexibility, Deregulated employment protection or temporary employment?," MPRA Paper 2396, University Library of Munich, Germany, revised Oct 2005.
    13. Bernard Hoekman, 2007. "Doha, Development And Discrimination," Pacific Economic Review, Wiley Blackwell, vol. 12(3), pages 267-292, August.

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    More about this item

    Keywords

    Trade liberalization; International migration; Labour adjustment;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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