The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Globalization and the Welfare State

  • Heinrich W. Ursprung
Reference work entry


Most scholarly investigations do not support the often heard claim that globalization impairs the welfare state: observed cuts in welfare programmes appear to be mainly driven by domestic factors. The empirical evidence supporting the converse claim – that globalization gains are used to compensate the losers from global economic integration – is, however, also inconclusive. In order to disentangle the multifaceted and potentially inconsistent globalization effects on the plethora of welfare state activities, future research will have to adopt a more explicit micro-orientation, better econometric techniques, and an empirical research strategy that is more firmly based on political economic theories.


Compensation effect of globalization Deindustrialization Diffusion processes Efficiency effect of globalization Globalization Globalization and the welfare state Labour market institutions Labour market risk Political economy Risk sharing Social insurance Trade openness Welfare state 

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Heinrich W. Ursprung
    • 1
  1. 1.