Hostname: page-component-78c5997874-94fs2 Total loading time: 0 Render date: 2024-11-02T19:48:32.576Z Has data issue: false hasContentIssue false
  • English
  • Français

Globalization and Welfare Compensation: Disentangling the Ties that Bind

Published online by Cambridge University Press:  09 July 2003

Brian Burgoon
Get access

Abstract

Three perspectives dominate debate over the relationship between globalization and the welfare state in industrialized countries: that globalization constrains the welfare that hitherto legitimated openness, that globalization still sparks demands for welfare while opening few forces to flee or fight against it, and that openness has little effect on welfare. A closer look at the “globalization” and “welfare” aggregates on which most scholars focus, however, reveals varying politics connecting different elements of globalization and welfare that may help reconcile this debate. First, compared to general trade openness, low-wage competition may spark stronger pressure to expand and less pressure to constrain welfare compensation. Second, all kinds of openness affect vulnerable and thriving groups in ways that differ across social policies, especially training and relocation benefits compared to benefits for youth dependents and the elderly. Consequently, different faces of openness may spark predictably different politics that spur some aspects of welfare, retrench others, and have little effect on still others. Panel data for eighteen OECD countries supports this argument.

Type
Articles
Information
International Organization , Volume 55 , Issue 3 , Summer 2001 , pp. 509 - 551
Copyright
Copyright © The IO Foundation 2001

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alesina, Alberto, and Perotti, Roberto. 1997. The Welfare State and Competitiveness. American Economic Review 87 (5):921–39.Google Scholar
Alt, James, Frieden, Jeffry, Gilligan, Michael J., Rodrik, Dani, and Rogowski, Ronald. 1996. The Political Economy of International Trade: Enduring Puzzles and an Agenda for Inquiry. Comparative Political Studies 29 (6):689–717.CrossRefGoogle Scholar
Barro, Robert J. 1991. Economic Growth in a Cross Section of Countries. The Quarterly Journal of Economics 106 (2):407–43.CrossRefGoogle Scholar
Barro, Robert J., and Sala-i-Martin, Xavier. 1995. Economic Growth. New York: McGraw Hill.Google Scholar
Bates, Robert, Brock, Philip, and Tiefenthaler, Jill. 1991. Risk and Trade Regimes: Another Explanation. International Organization 45 (1):1–18.CrossRefGoogle Scholar
Beck, Nathaniel. 1998. Time-Series Cross-Section Data. Unpublished manuscript, University of California, San Diego.Google Scholar
Beck, Nathaniel, and Katz, Jonathan N.. 1995. What to Do (and Not to Do) with Time-Series-Cross-Section Data in Comparative Politics. American Political Science Review 89 (3):634–47.CrossRefGoogle Scholar
Berger, Suzanne, and Dore, Ronald, eds. 1996. National Diversity and Global Capitalism. Ithaca, N.Y.: Cornell University Press.CrossRefGoogle Scholar
Blais, Andre. 1986. The Political Economy of Public Subsidies. Comparative Political Studies 19 (2):201–16.CrossRefGoogle Scholar
Boix, Carles, and Adsera, Alicia. 2000. Trade, Democracy, and the Size of the Public Sector: The Political Underpinnings of Openness. Paper presented at the 96th Annual Meeting of the American Political Science Association, Washington, D.C.Google Scholar
Bowles, Paul, and Wagman, Barnet. 1997. Globalization and the Welfare State: Four Hypotheses and Some Empirical Evidence. Eastern Economic Journal 23 (3):317–36.Google Scholar
Burgoon, Brian. 1998. Compensated Liberalization: Using Side Payment Compensation to Facilitate and Humanize International Economic Openness. Ph.D. diss., Massachusetts Institute of Technology.Google Scholar
Cameron, David. 1978. The Expansion of the Public Economy. American Political Science Review 72 (4):1243–61.CrossRefGoogle Scholar
Cameron, David, Kim, Soo Yeon, and McDermott, Kathryn A.. 2000. Openness, Political Institutions, and the Size of Government. Paper presented at the 96th Annual Meeting of the American Political Science Association, Washington, D.C.Google Scholar
Cerny, Philip G. 1995. Globalization and the Changing Logic of Collective Action. International Organization 49 (4):595–625.CrossRefGoogle Scholar
Cline, William R. 1997. Trade and Income Distribution. Washington, D.C: Institute for International Economics.Google Scholar
Ebbinghaus, B. 1998. European Labor Relations and Welfare States: A Comparative Analysis of Their “Elective Affinities.” Paper presented at the 11th International Conference of Europeanists, Baltimore, Maryland.Google Scholar
Ebbinghaus, B., and Hassel, A.. 2000. Striking Deals: Concertation in the Reform of Continental European Welfare States, Journal of European Public Policy 7 (1):44–62.CrossRefGoogle Scholar
Eichengreen, Barry. 1999. The Global Gamble on Financial Liberalization: Reflections on Capital Mobility, National Autonomy, and Social Justice. Ethics and International Affairs 13:205–26.CrossRefGoogle Scholar
Esping-Andersen, Gosta. 1990. Three Worlds of Welfare Capitalism. Princeton, N.J.: Princeton University Press.Google Scholar
Esping-Andersen, Gosta, ed. 1996. Welfare States in Transition: National Adaptations in Global Economies. London: Sage Publications.Google Scholar
Estevez-Abe, Margarita, Iversen, Torben, and Soskice, David. 1999. Social Protection and the Formation of Skills: A Reinterpretation of the Welfare State. Paper presented at the 95th Annual Meeting of the American Political Science Association, Atlanta, Georgia.Google Scholar
Ferrara, Maurizio, Hemerijck, Anton, and Rhodes, Martin. 2000. Preserving the European Social Model. Brussels: European Union.Google Scholar
Frieden, Jeffry A., and Rogowski, Ronald. 1996. The Impact of the International Economy on National Policies: An Analytical Overview. In Internationalization and Domestic Politics, edited by Keohane, Robert O. and Milner, Helen V., 25–47. New York: Cambridge University Press.CrossRefGoogle Scholar
Garrett, Geoffrey. 1998. Partisan Politics in the Global Economy. New York: Cambridge University Press.CrossRefGoogle Scholar
Garrett, Geoffrey. 1995. Capital Mobility, Trade, and the Politics of Economic Policy. International Organization 49 (4):657–87.CrossRefGoogle Scholar
Garrett, Geoffrey, and Lange, Peter. 1991. Political Responses to Interdependence: What's “Left”' for the Left? International Organization 45 (4):539–64CrossRefGoogle Scholar
Garrett, Geoffrey, and Mitchell, Deborah. 2001. Globalization and the Welfare State. European Journal of Political Research 39 (2):145–77.CrossRefGoogle Scholar
Greider, William. 1997. One World, Ready or Not: The Manic Logic of Global Capitalism. New York: Simon and Schuster.Google Scholar
Grossman, Gene M., and Helpman, Elhanan. 1994. Endogenous Innovation in the Theory of Growth. Journal of Economic Perspectives 8 (1):23–44.CrossRefGoogle Scholar
Hemerijck, Anton, and Schludi, Martin. 2000. Welfare Adjustment in Europe: The Search for an Effective Policy Mix. Paper presented at the 96th Annual Meeting of the American Political Science Association, Washington, D.C.Google Scholar
Hiscox, Michael J. 2001. Class Versus Industry Cleavages: Inter-Industry Factor Mobility and the Politics of Trade. International Organization 55 (1):1–46.CrossRefGoogle Scholar
Honaker, James, Joseph, Anne, King, Gary, Scheve, Kenneth, and Singh, Naunihal. 1999. Amelia: A Program for Missing Data (Windows version). Available at ⟨http://gking.harvard.edu/⟩.Google Scholar
Huber, Evelyne, Stephens, John D., and Ray, Leonard. 1997. The Welfare State in Hard Times. Revised version of paper prepared for conference “Politics and Political Economy of Contemporary Capitalism,” Humbolt University, Berlin, 1995.Google Scholar
International Monetary Fund. Various years. Balance of Payments Statistics Yearbook. Washington, D.C.: IMF.Google Scholar
Iversen, Torben, and Cusack, Thomas R.. 2000. The Causes of Welfare State Expansion: Deindustrialization or Globalization? World Politics 52 (3):313–49.CrossRefGoogle Scholar
Jessop, Bob. 1993. Towards a Schumpeterian Workfare State? Preliminary Remarks on Post-Fordist Political Economy. Studies in Political Economy 40 (spring):7–39.CrossRefGoogle Scholar
Kapstein, Ethan. 1996. Workers in the World Economy. Foreign Affairs 75 (3):16–37.CrossRefGoogle Scholar
Katzenstein, Peter J. 1985. Small States in World Markets: Industrial Policy in Europe. Ithaca, N.Y.: Cornell University Press.Google Scholar
King, Gary, Honaker, James, Joseph, Anne, and Scheve, Kenneth. 2001. Analyzing Incomplete Political Science Data: An Alternative Algorithm for Multiple Imputation. American Political Science Review 95 (1):49–69.CrossRefGoogle Scholar
Kurzer, Paulette. 1993. Business and Banking: Political Change and Economic Integration in Western Europe. Ithaca, N.Y.: Cornell University Press.Google Scholar
Lawrence, Robert Z., and Slaughter, Matthew J.. 1993. International Trade and Anerican Wages in the 1980s: Giant Sucking Sound or Small Hiccup? Brookings Papers on Economic Activity. Washington, D.C.: Brookings Institution.Google Scholar
Leamer, Edward. 1997. A Trade Economist's View of U.S. Wages and “Globalization.” Unpublished manuscript, University of California, Los Angeles.Google Scholar
Martin, Cathie Jo. 2000. Business Policy Legacies and the Welfare State. Paper presented at the 96th Annual Meeting of the American Political Science Association, Washington, D.C.Google Scholar
Ohmae, Kenichi. 1991. The Borderless World: Power and Strategy in the Interlinked Economy. New York: Harper Perennial.Google Scholar
Organization for Economic Cooperation and Development (OECD). Various years. Historical Statistics. Paris: OECD.Google Scholar
Organization for Economic Cooperation and Development (OECD). Various years. Quarterly Labour Force Statistics. Paris: OECD.Google Scholar
Organization for Economic Cooperation and Development (OECD). Various years. Quarterly National Accounts, Part II: Detailed Tables. Paris: OECD.Google Scholar
Organization for Economic Cooperation and Development (OECD). 1996. Social Expenditure Statistics for OECD Member Countries. Labour Market and Social Policy Occasional Papers 17. Paris: OECD.Google Scholar
Organization for Economic Cooperation and Development (OECD). 1998. Social Expenditures Database. Paris: OECD.Google Scholar
Organization for Economic Cooperation and Development (OECD). 1999. Net Social Expenditure. Labour Market and Social Policy Occasional Papers 39. Paris: OECD.Google Scholar
Pierson, Paul. 1996. The New Politics of the Welfare State. World Politics 48 (2):143–79.CrossRefGoogle Scholar
Pierson, Paul. 2000a. Three Worlds of Welfare State Research. Comparative Political Studies 33 (6/7):791–821.CrossRefGoogle Scholar
Pierson, Paul, ed. 2000b. The New Politics of the Welfare State. Oxford: Oxford University Press.Google Scholar
Polanyi, Karl. [1944] 1957. The Great Transformation: The Political and Economic Origins of Our Time. Boston: Beacon Press.Google Scholar
Quinn, Dennis. 1997. The Correlates of Change in International Financial Regulation. American Political Science Review 91 (3):531–51.CrossRefGoogle Scholar
Reich, Robert B. 1992. The Work of Nations: Preparing Ourselves for the 21st Century Capitalism. New York: Vintage Press.Google Scholar
Rodrik, Dani. 1997. Has Globalization Gone Too Far? Washington, D.C.: Institute for International Economics.CrossRefGoogle Scholar
Rodrik, Dani. 1998. Why Do More Open Economies Have Bigger Governments? Journal of Political Economy 106 (5):997–1032.CrossRefGoogle Scholar
Romer, Paul M. 1994. The Origins of Endogenous Growth. Journal of Economic Perspectives 8 (1):3–22.CrossRefGoogle Scholar
Ruggie, John Gerard. 1983. International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order. In International Regimes, edited by Krasner, Stephen D., 195–231. Ithaca, N.Y.: Cornell University Press.Google Scholar
Ruggie, John Gerard. 1994. Trade, Protectionism, and the Future of Welfare Capitalism. Journal of International Affairs 48 (1):1–11.Google Scholar
Scharpf, Fritz, and Schmidt, Vivienne, eds. Forthcoming. Work and Welfare in the Open Economy, Vol. 1 and 2. Oxford: Oxford University Press.Google Scholar
Soros, George. 1998. Crisis of Global Capitalism: Open Society Endangered. New York: Perseus Book Group.Google Scholar
Steinmo, Sven. 1994. The End of Redistribution? International Pressures and Domestic Tax Policy Choices. Challenge 37 (6):9–18.CrossRefGoogle Scholar
Streeck, Wolfgang. 1995. From Market Making to State Building? Reflections on the Political Economy of European Social Policy. In European Social Policy: Between Fragmentation and Integration, edited by Leibfried, Stephan and Pierson, Paul, 389–431. Washington, D. C.: Brookings Institution.Google Scholar
Streeck, Wolfgang, and Schmitter, Philippe C.. 1991. From National Corporatism to Transnational Pluralism: Organized Interests in the Single European Market. Politics and Society 19 (2):133–64.CrossRefGoogle Scholar
Stryker, Robin. 1998. Globalization and the Welfare State. International Journal of Sociology and Social Policy 18 (2/3/4):1–49.CrossRefGoogle Scholar
Swank, Duane. 1995. Eighteen Nation Pooled Time Series Data Set, 1955–92, mimeo, Marquette University.Google Scholar
Swank, Duane. 1998a. Funding the Welfare State: Globalization and the Taxation of Business in Advanced Market Economies. Political Studies 46 (4):671–92.CrossRefGoogle Scholar
Swank, Duane. 1998b. Global Capital, Democracy, and the Welfare State: Why Political Institutions Are So Important in Shaping the Domestic Response to Internationalization. Political Economy of European Integration Working Paper No. 1.66. Berkeley: Center for German and European Studies, University of California.Google Scholar
Swank, Duane. 2000. Globalization, Democratic Institutions, and Policy Change in European Welfare States: The Corporatist Conservative Cases. Paper presented at the 96th Annual Meeting of the American Political Science Association, Washington, D. C.Google Scholar
Swank, Duane, and Jo Martin, Cathie. Forthcoming. Employers and the Welfare State. Comparative Political Studies.Google Scholar
Wade, Robert. 1996. Globalization and Its Limits: Reports of the Death of the National Economy Are Greatly Exaggerated. In National Diversity and Global Capitalism, edited by Berger, Suzanne and Dore, Ronald, 60–88. Ithaca, N.Y.: Cornell University Press.Google Scholar
Wood, Adrian. 1994. North-South Trade, Employment, and Inequality. New York: Oxford University Press.Google Scholar