How an Industry’s History Affects Status Loss Under Foreign Competition

• In Event: Analyzing the Globalization Backlash: New Explanations

Abstract

Most accounts of the recent rise in populism come in one of two flavors: economic or cultural. Yet scholars are increasingly recognizing that material and non-material considerations are intertwined, rather than mutually exclusive. The question is, how do they interact? We address this puzzle by looking to the regional history of particular industries in the United States. We argue that import competition is more likely to generate political effects when an industry has a long history in a given area. The longer that history is, the more workers are likely to identify with their work, and the greater the status loss that results when those jobs are threatened by foreign competition. The triggering mechanism is thus an economic one, but individuals become more likely to act politically on that trigger when it threatens an established way of life. Whether an economic variable like import competition generates political effects hinges on questions of family, community, and local history. We also argue that longer-established industries feature higher barriers to entry, benefiting local populations at the expense of newly arrived immigrants. It is one more reason why job losses in such industries are likely to loom especially large. Evidence from US census data and original surveys provide support for these beliefs. An industry’s history magnifies the political effects of economic shocks

Authors

• Sung Eun Kim, Korea University

• Krzysztof J. Pelc, McGill University