Public Finance And Individual Preferences Over Globalization Strategies

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1、ECONOMICS&POLITICS0954-1985Volume19March2007No.1PUBLICFINANCEANDINDIVIDUALPREFERENCESOVERGLOBALIZATIONSTRATEGIESGORDONH.HANSON,KENNETHSCHEVE,ANDMATTHEWJ.SLAUGHTERDopreferencestowardglobalizationstrategiesvaryacrosspublic-financeregimes?Inthispaper,weusedataonindividualp

2、referencestowardimmigrationandtradepolicytoexaminehowpre-taxandpost-taxcleavagesdifferacrossglobalizationstrategiesandstatefiscaljur-isdictions.HighexposuretoimmigrantfiscalpressuresreducessupportforfreerimmigrationamongU.S.natives,especiallythemoreskilled.Themagnitudeofth

3、ispost-taxfiscalcleavageiscomparabletothepre-taxlabor-marketeffectsofskillitself.Thereisnopublic-financevaria-tioninopinionovertradepolicy,consistentwithU.S.tradepolicyhavingnegligiblefiscal-policyimpacts.Publicfinancethusappearstoshapeopinionstowardglobalizationstrategies.1

4、.INTRODUCTIONINTERNATIONALECONOMICpoliciesthatregulatetheflowofgoods,capital,andlaboracrossbordersvarysubstantiallynotonlyacrosscountriesandovertimebutalsowithinthesedifferentdimensionsofintegrationwiththeworldeconomy.Oneofthemajorpuzzlesinpoliticaleconomyiswhysomanycount

5、riesappeartoadoptrelativelyliberaltradepoliciesbutrelativelyilliberalimmigrationregulations.Tradeandimmigrationliberalizationbothhavethepotentialtoimproveacountry’seconomicwelfarethrougheffi-ciencygains.Becauseinternationalflowsofgoodsandlaborbothworktointegratenationallab

6、ormarketswiththeglobaleconomy,thesepoliciesoftenhavesimilareffectsonworkeroutcomesinthelabormarket,leadingmanyscholarstoviewthedistributionalconsequencesofliberalizationtobequitesimilaraswell.Absentasimpleefficiencyordistributionalexplanation,mostexistingscholarshipturnsto

7、importantnon-economicdifferencesbetweentradeandimmigrationpolicy.Mostobviously,negativevoterattitudestowardforeignculturesandminoritygroupsmaybemoreinfluentialforimmigrationthantrade,leadingtorelativelymorepublicsupportforliberaltradepolicies.Inthispaper,wedevelopanaltern

8、ativeargument:governmentpoliciesthatredistributeincomealterthedistributionalpoliticsovertradeandim-migrationpo