Konferenzbeitrag

Instrumental Variables and Causal Mechanisms: Unpacking the Effect of Trade on Workers and Voters

We identify how German voters responded to the labor market turmoil caused by increasing trade with low-wage manufacturing countries. We first establish that import competition increased voters’ support for only extreme (right) parties. We then decompose this populist ‘total effect’ of trade on voting into a ‘mediated effect’ running through labor market adjustments and an independent ‘direct effect’. Our Causal Mediation Analysis reveals that direct and indirect effect work in opposite directions.

Language
Englisch

Bibliographic citation
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Voting ; No. C20-V1

Classification
Wirtschaft
Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Trade and Labor Market Interactions

Event
Geistige Schöpfung
(who)
Gold, Robert
Dippel, Christian
Heblich, Stephan
Pinto, Rodrigo
Event
Veröffentlichung
(who)
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
(where)
Kiel, Hamburg
(when)
2017

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Gold, Robert
  • Dippel, Christian
  • Heblich, Stephan
  • Pinto, Rodrigo
  • ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft

Time of origin

  • 2017

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