Arbeitspapier

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

This paper shows that import exposure affects voting behavior because it affects local labor markets. We develop a new framework for mediation analysis where one instrumental variable is sufficient to identify three causal effects. Using German data from 1987–2009, we find that import exposure increases the support of nationalist parties and causes labor market turmoil. The voting response to import exposure can entirely be explained by the labor market adjustments to import exposure. Individual-level data corroborate our findings. Our novel estimation framework is applicable to a broad range of empirical studies interested in the causal mechanisms behind causal effects.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 6816

Klassifikation
Wirtschaft
Multiple or Simultaneous Equation Models: Instrumental Variables (IV) Estimation
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Economic Impacts of Globalization: General
Demand and Supply of Labor: General
Thema
instrumental variables
causal mediation analysis
import exposure
voting
local labor markets

Ereignis
Geistige Schöpfung
(wer)
Dippel, Christian
Gold, Robert
Heblich, Stephan
Pinto, Rodrigo
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dippel, Christian
  • Gold, Robert
  • Heblich, Stephan
  • Pinto, Rodrigo
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2017

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