Working Paper: NBER ID: w9872
Authors: Kevin H. O'Rourke
Abstract: The aim of the paper is to see whether individuals' attitudes towards globalization are consistent with the predictions of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade and immigration should depend on a country's skill endowments, with the skilled being less anti-trade and anti-immigration in more skill-abundant countries (here taken to be richer countries) than in more unskilled-labour-abundant countries (here taken to be poorer countries). These predictions are confirmed, using survey data for 24 countries. Being high-skilled is associated with more pro-globalization attitudes in rich countries; while in some of the very poorest countries in the sample being high-skilled has a negative (if statistically insignificant) impact on pro-globalization sentiment. More generally, an interaction term between skills and GDP per capita has a negative impact in regressions explaining anti-globalization sentiment. Furthermore, individuals view protectionism and anti-immigrant policies as complements rather than as substitutes, which is what simple Heckscher-Ohlin theory predicts.
Keywords: No keywords provided
JEL Codes: F1; F2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| high-skilled individuals (J24) | pro-globalization attitudes (F69) |
| country’s wealth (D31) | effect of skill level on attitudes (J24) |
| interaction term between skills and GDP per capita (J24) | anti-globalization sentiment (F69) |
| pro-protectionist attitudes (F52) | anti-immigrant sentiments (K37) |