Public Finance and Individual Preferences over Globalization Strategies

33 Pages Posted: 17 Feb 2007

See all articles by Gordon H. Hanson

Gordon H. Hanson

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS); National Bureau of Economic Research (NBER)

Kenneth Scheve

Stanford University

Matthew J. Slaughter

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER)

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Abstract

Do preferences toward globalization strategies vary across public-finance regimes? In this paper, we use data on individual preferences toward immigration and trade policy to examine how pre-tax and post-tax cleavages differ across globalization strategies and state fiscal jurisdictions. High exposure to immigrant fiscal pressures reduces support for freer immigration among U.S. natives, especially the more skilled. The magnitude of this post-tax fiscal cleavage is comparable to the pre-tax labor-market effects of skill itself. There is no public-finance variation in opinion over trade policy, consistent with U.S. trade policy having negligible fiscal-policy impacts. Public finance thus appears to shape opinions toward globalization strategies.

Suggested Citation

Hanson, Gordon H. and Scheve, Kenneth F. and Slaughter, Matthew J., Public Finance and Individual Preferences over Globalization Strategies. Economics & Politics, Vol. 19, No. 1, pp. 1-33, March 2007. Available at SSRN: https://ssrn.com/abstract=963825 or http://dx.doi.org/10.1111/j.1468-0343.2007.00300.x

Gordon H. Hanson

University of California, San Diego (UCSD) - Graduate School of International Relations and Pacific Studies (IRPS) ( email )

9500 Gilman Drive
La Jolla, CA 92093-0519
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kenneth F. Scheve (Contact Author)

Stanford University ( email )

Stanford, CA 94305
United States

Matthew J. Slaughter

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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