This project investigates how individuals’ exposure to global competition influences their feeling of economic security and a wide range of policy preferences, and how the emergence of new conflict lines between beneficiaries and losers of globalization changes the constituencies of political parties.I argue that globalization has very heterogenous effects, which depend both on individuals' exposure to global competition and their factor-endowments. This suggests that even within the same industry, exposure to global competition can be harmful to some people, but not to others. In developed countries, high-skilled individuals in exposed industries or occupations can be characterized as “globalization winners,” because they can sell their skills to global markets. In contrast, low-skilled individuals working in an exposed sector face serious problems. The goods they produce are most likely to be substituted with imports from low-wage countries and their jobs are the most likely to be moved abroad, so that they can be classified as “globalization losers.” Individuals working in sheltered industries or occupations constitute an intermediate category. I use individual-level data to test the implications of these differentiated effects of globalization.
Output and Work in Progress:
Ahlquist, John, Mark Copelovitch, and Stefanie Walter (2018). The Political Consequences of International Financial Shocks: Evidence from Poland. CIS Working Paper No.97.
Rommel, Tobias and Stefanie Walter (2017). The Electoral Consequences of Offshoring. How the Globalization of Production Shapes Party Preferences in Multi-Party Systems.Comparative Political Studies. 51(5): 621– 658.
Walter, Stefanie (2017). "Globalization and the Demand-Side of Politics. How globalization shapes labor market risk perceptions and policy preferences." Political Science Research and Methods 5(1): 55-80.
Walter, Stefanie (2016). Mitten durch die Gesellschaft. DeFacto Expert Blog Entry, 4 April 2016.
Dancygier, Rafaela and Stefanie Walter (2015). 'Globalization, Labor Market Risks, and Class Cleavages'. In: Beramendi, Pablo, Silja Häusermann, Hebert Kitschelt and Hanspeter Kriese (eds). The Politics of Advanced Capitalism. Cambridge: Cambridge University Press. 133-56.
Walter, Stefanie (2010). Globalization and the Welfare State. Testing the Microfoundations of the Compensation Hypothesis. International Studies Quarterly.54(2):40326.http://www.stefaniewalter.de/app/download/4123411/Walter.2010.ISQ.pdf]