Solidarity with Losers of Free Trade

Solidarity with Losers of Free Trade

Grossman, Gene M./ Helpman, Elhanan (2018), Identity Politics and Trade Policy: National Bureau of Economic Research, NBER Working Papers 25348 Cambridge, MA: National Bureau of Economic Research. This paper argues against the dominanting view in the literature on international trade that people perceive trade relations first and foremost as determined by clear cost-benefit calculations. Instead the growing popular scepticism against free trade (particularly in the United States) is driven by a strong solidarity with the losers of international trade. The social environement pressures its members not to deviate too far from the community they live in.

Immigration and National Voting

Immigration and National Voting

Moriconi, Simone/ Peri, Giovanni/ Turati, Riccardo (2018), Skill of the Immigrants and Vote of the Natives: Immigration and Nationalism in European Elections 2007-2016. National Bureau of Economic Research, NBER Working Papers 25077, Cambridge, MA: National Bureau of Economic Research. This working paper analyses the impact of migration on voters’ decisions in Europe. These decisions vary according to how voters perceive migration as an asset or as a liability to the society. Older and less educated voters perceive migrants differently and migration does not just mobilize former non-voters but changes the voting behavior of broad sections of the society.

Financial Crisis and Polarization of Politics

Financial Crisis and Polarization of Politics

Funke, Manuel/ Schularick, Moritz/ Trebesch, Christoph (2015), Goeing to the Extremes: Politics after Financial Crisis, 1870-2014: Center for Economic Studies & Ifo Institute, CESIfo Working Papers 5553 München: Center for Economic Studies & Ifo Institute. This publication shows how financial crisis historically generated political polarization and a drift of voters to far right parties. Moreover, polarization and fragmentation of politics decreases the much needed ability to govern after a financial crisis has hit.