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Intro Lit Review Theory Evidence Conclusion Additional Slides Where You Work Is Where You Stand: A Firm-Based Theory of Trade Opinion Haillie Na-Kyung Lee 1 & Yu-Ming Liou 1 1 Department of Government, Georgetown University International Political Economy Society Stanford University November 14, 2015 Lee & Liou Georgetown Where You Work Is Where You Stand:

Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

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Page 1: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Where You Work Is Where You Stand:A Firm-Based Theory of Trade Opinion

Haillie Na-Kyung Lee1 & Yu-Ming Liou1

1Department of Government, Georgetown University

International Political Economy SocietyStanford UniversityNovember 14, 2015

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 2: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Motivation

Motivation

I Employers are critical to individual economic identity andinterests

I Attention to firms as investors, importers, exporters, but notas employers

I Attention to individuals as consumers, producers, but not asemployees

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 3: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Motivation

Motivation

I Employers are critical to individual economic identity andinterests

I Attention to firms as investors, importers, exporters, but notas employers

I Attention to individuals as consumers, producers, but not asemployees

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 4: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Motivation

Motivation

I Employers are critical to individual economic identity andinterests

I Attention to firms as investors, importers, exporters, but notas employers

I Attention to individuals as consumers, producers, but not asemployees

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 5: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Puzzle

Puzzle

Prominent theories predict trade policy cleavages by skill or sector:Heckscher-Ohlin (Ohlin, 1933); Ricardo-Viner (Viner,1931)

Increasingly complex globalization produces anomalies for current theory:

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 6: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Puzzle

Puzzle

Prominent theories predict trade policy cleavages by skill or sector:

Increasingly complex globalization produces anomalies for current theory:What explains variation in trade preferences amongworkers at the same skill level, who are employed inthe same sector?

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 7: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Puzzle

Textiles Manufacturing in the United States

This is a textile factory...

American Apparel Factory. LosAngeles, CA (LA Times)

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 8: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Puzzle

Textiles Manufacturing in the United States

This is a textile factory...

American Apparel Factory. LosAngeles, CA (LA Times)

So is this.

Toray International Factory.Seattle, WA (Seattle Times)

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 9: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Trade Opinion

Trade Preferences

I Stolper-Samuelson: Rogowski (1989); Scheve & Slaughter(2000), Mayda & Rodrik (2005) etc.

I Ricardo-Viner: Irwin (1996); Irwin & Kroszner (1999); Busch& Reinhardt (2000)

I Non-economic: Hainmueller & Hiscox (2006); Mansfield &Mutz (2009); Guisinger (2009)

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 10: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Trade Opinion

Trade Preferences

I Stolper-Samuelson: Rogowski (1989); Scheve & Slaughter(2000), Mayda & Rodrik (2005) etc.

I Ricardo-Viner: Irwin (1996); Irwin & Kroszner (1999); Busch& Reinhardt (2000)

I Non-economic: Hainmueller & Hiscox (2006); Mansfield &Mutz (2009); Guisinger (2009)

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 11: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Trade Opinion

Trade Preferences

I Stolper-Samuelson: Rogowski (1989); Scheve & Slaughter(2000), Mayda & Rodrik (2005) etc.

I Ricardo-Viner: Irwin (1996); Irwin & Kroszner (1999); Busch& Reinhardt (2000)

I Non-economic: Hainmueller & Hiscox (2006); Mansfield &Mutz (2009); Guisinger (2009)

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 12: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Accounting for Transaction Costs

I Firms are the primary locus of economic activityI Theory of the firm: Coase (1937); Williamson (1975)

I Employee interests are tied closely to employer interestsI Better fits intuition about individual preferences (e.g., LG vs.

Samsung employees)I Non-trivial costs of changing employers (Jacobson et al., 1993)

I Distributive theories of globalization need to account for firms

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 13: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Accounting for Transaction Costs

I Firms are the primary locus of economic activityI Theory of the firm: Coase (1937); Williamson (1975)

I Employee interests are tied closely to employer interestsI Better fits intuition about individual preferences (e.g., LG vs.

Samsung employees)I Non-trivial costs of changing employers (Jacobson et al., 1993)

I Distributive theories of globalization need to account for firms

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 14: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Accounting for Transaction Costs

I Firms are the primary locus of economic activityI Theory of the firm: Coase (1937); Williamson (1975)

I Employee interests are tied closely to employer interestsI Better fits intuition about individual preferences (e.g., LG vs.

Samsung employees)I Non-trivial costs of changing employers (Jacobson et al., 1993)

I Distributive theories of globalization need to account for firms

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 15: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Accounting for Transaction Costs

I Firms are the primary locus of economic activityI Theory of the firm: Coase (1937); Williamson (1975)

I Employee interests are tied closely to employer interestsI Better fits intuition about individual preferences (e.g., LG vs.

Samsung employees)I Non-trivial costs of changing employers (Jacobson et al., 1993)

I Distributive theories of globalization need to account for firms

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 16: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Accounting for Transaction Costs

I Firms are the primary locus of economic activityI Theory of the firm: Coase (1937); Williamson (1975)

I Employee interests are tied closely to employer interestsI Better fits intuition about individual preferences (e.g., LG vs.

Samsung employees)I Non-trivial costs of changing employers (Jacobson et al., 1993)

I Distributive theories of globalization need to account for firms

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 17: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Accounting for Transaction Costs

I Firms are the primary locus of economic activityI Theory of the firm: Coase (1937); Williamson (1975)

I Employee interests are tied closely to employer interestsI Better fits intuition about individual preferences (e.g., LG vs.

Samsung employees)I Non-trivial costs of changing employers (Jacobson et al., 1993)

I Distributive theories of globalization need to account for firms

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 18: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Heterogeneity in Employer Preferences

I Firms vary in productivity (Melitz, 2003)I More productive firms should favor openness (Helpman et al.,

2004)I Jensen et al. (2015)I Baccini et al. (2015)

I Not much attention to effect on employees’ preferences

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 19: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Heterogeneity in Employer Preferences

I Firms vary in productivity (Melitz, 2003)I More productive firms should favor openness (Helpman et al.,

2004)I Jensen et al. (2015)I Baccini et al. (2015)

I Not much attention to effect on employees’ preferences

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 20: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Heterogeneity in Employer Preferences

I Firms vary in productivity (Melitz, 2003)I More productive firms should favor openness (Helpman et al.,

2004)I Jensen et al. (2015)I Baccini et al. (2015)

I Not much attention to effect on employees’ preferences

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 21: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Heterogeneity in Employer Preferences

I Firms vary in productivity (Melitz, 2003)I More productive firms should favor openness (Helpman et al.,

2004)I Jensen et al. (2015)I Baccini et al. (2015)

I Not much attention to effect on employees’ preferences

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 22: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory of the Firm

Heterogeneity in Employer Preferences

I Firms vary in productivity (Melitz, 2003)I More productive firms should favor openness (Helpman et al.,

2004)I Jensen et al. (2015)I Baccini et al. (2015)

I Not much attention to effect on employees’ preferences

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 23: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Hecksher-Ohlin

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 24: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Hecksher-Ohlin Ricardo-Viner

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 25: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 26: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 27: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 28: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 29: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 30: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 31: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Theory and Alternatives

Predicted Distributional Cleavages

Firm-Based Theory

I Employers are central tomost individuals’ economicinterests.

I Firms dominate economicactivity

I More productive firmsfavor openness

I Firm competition shapeslabor market competition

I Individuals’ trade opinionsinfluenced by employer type

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 32: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Hypotheses

Hypotheses

H1: Individuals employed by internationally-competitive firmsare more likely to favor trade openness than those employedby less-competitive firms.

H2: Employer competitiveness moderates the effects of othereconomic interests (e.g., skill level, sector, occupation).

H3: The effect of employer competitiveness is conditioned byemployees’ position in their firms. Higher-status employeeswill have systematically higher support for openness.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 33: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Hypotheses

Hypotheses

H1: Individuals employed by internationally-competitive firmsare more likely to favor trade openness than those employedby less-competitive firms.

H2: Employer competitiveness moderates the effects of othereconomic interests (e.g., skill level, sector, occupation).

H3: The effect of employer competitiveness is conditioned byemployees’ position in their firms. Higher-status employeeswill have systematically higher support for openness.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 34: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Hypotheses

Hypotheses

H1: Individuals employed by internationally-competitive firmsare more likely to favor trade openness than those employedby less-competitive firms.

H2: Employer competitiveness moderates the effects of othereconomic interests (e.g., skill level, sector, occupation).

H3: The effect of employer competitiveness is conditioned byemployees’ position in their firms. Higher-status employeeswill have systematically higher support for openness.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 35: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Data Sources

I EASS 2008 (China, Japan, Taiwan)I Large, nationally-representative surveys analogous to GSSI 2008 Wave offers micro-level data on employment

I JGSS 2008I Offers finer-grained measures of employer characteristics

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 36: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Data Sources

I EASS 2008 (China, Japan, Taiwan)I Large, nationally-representative surveys analogous to GSSI 2008 Wave offers micro-level data on employment

I JGSS 2008I Offers finer-grained measures of employer characteristics

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 37: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Data Sources

I EASS 2008 (China, Japan, Taiwan)I Large, nationally-representative surveys analogous to GSSI 2008 Wave offers micro-level data on employment

I JGSS 2008I Offers finer-grained measures of employer characteristics

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 38: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Data Sources

I EASS 2008 (China, Japan, Taiwan)I Large, nationally-representative surveys analogous to GSSI 2008 Wave offers micro-level data on employment

I JGSS 2008I Offers finer-grained measures of employer characteristics

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 39: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Data Sources

I EASS 2008 (China, Japan, Taiwan)I Large, nationally-representative surveys analogous to GSSI 2008 Wave offers micro-level data on employment

I JGSS 2008I Offers finer-grained measures of employer characteristics

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 40: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Key Variables

I protection: Seven point scale measuring agreement withlimits on foreign imports ”to protect [the] national economy.”

I foreign firm: Dichotomous variable indicating whetherrespondents are employed by a foreign-owned firm.

I globalized employer: Dichotomous variable indicating ifemployer imports, exports, or produces in a foreign country.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 41: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Key Variables

I protection: Seven point scale measuring agreement withlimits on foreign imports ”to protect [the] national economy.”

I foreign firm: Dichotomous variable indicating whetherrespondents are employed by a foreign-owned firm.

I globalized employer: Dichotomous variable indicating ifemployer imports, exports, or produces in a foreign country.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 42: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Data

Key Variables

I protection: Seven point scale measuring agreement withlimits on foreign imports ”to protect [the] national economy.”

I foreign firm: Dichotomous variable indicating whetherrespondents are employed by a foreign-owned firm.

I globalized employer: Dichotomous variable indicating ifemployer imports, exports, or produces in a foreign country.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 43: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Plots

Hypothesis 1: Base Model

.07

.08

.09

.1.1

1.1

2

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Employer Globalized Employer

Employer Type

Base Model

Figure 1: Ordered Logit (P=6). Shown with robust, region-clusteredSEs.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 44: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Plots

Hypothesis 2: Sector, Skill Interactions.0

2.0

4.0

6.0

8.1

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Globalized

Employer Type

Non-Graduates

.02

.04

.06

.08

.1(P

) su

ppor

ting

limits

on

impo

rts

Domestic Globalized

Employer Type

College Graduates

Skill Level

.05

.1.1

5.2

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Globalized

Employer Type

Comparative Advantage

.05

.1.1

5.2

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Globalized

Employer Type

Comparative Disadvantage

Sector Competitiveness

Figure 2: Ordered Logit (P=6). Shown with robust, region-clusteredSEs.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 45: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Plots

Hypothesis 2: Offshorability at mean Task Routineness

0.0

5.1

.15

(P)

supp

ortin

g lim

its o

n im

port

s

-4 -2 0 2 4

Task Offshorability

All Employers

0.0

5.1

.15

(P)

supp

ortin

g lim

its o

n im

port

s

-4 -2 0 2 4

Task Offshorability

Domestic

0.0

5.1

.15

(P)

supp

ortin

g lim

its o

n im

port

s

-4 -2 0 2 4

Task Offshorability

Globalized

Exposure to Offshoring at Mean Task Routineness

Figure 3: Ordered Logit (P=6). Shown with robust, region-clusteredSEs.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 46: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Plots

Hypothesis 2: Task Routineness at mean Offshorability

.02

.04

.06

.08

.1.1

2

(P)

supp

ortin

g lim

its o

n im

port

s

2 4 6 8 10

Task Routineness

All Employers

.02

.04

.06

.08

.1.1

2

(P)

supp

ortin

g lim

its o

n im

port

s

2 4 6 8 10

Task Routineness

Domestic

.02

.04

.06

.08

.1.1

2

(P)

supp

ortin

g lim

its o

n im

port

s

2 4 6 8 10

Task Routineness

Globalized

Task Routineness at Mean Offshorability

Figure 4: Ordered Logit (P=6). Shown with robust, region-clusteredSEs.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 47: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Plots

Hypothesis 3: Conditional Effects of Relative Status0

.2.4

.6(P

) su

ppor

ting

limits

on

impo

rts

Domestic Globalized

Employer Type

Job Secure

0.2

.4.6

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Globalized

Employer Type

Job Not Secure

Job Security

.1.2

.3.4

.5(P

) su

ppor

ting

limits

on

impo

rts

Domestic Globalized

Employer Type

Permanent Employees

.1.2

.3.4

.5(P

) su

ppor

ting

limits

on

impo

rts

Domestic Globalized

Employer Type

Temporary Employees

Temporary Work Status

0.1

.2.3

.4.5

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Globalized

Employer Type

Non-Executives

0.1

.2.3

.4.5

(P)

supp

ortin

g lim

its o

n im

port

s

Domestic Globalized

Employer Type

Executives

Job Role

.2.2

5.3

.35

.4.4

5(P

) su

ppor

ting

limits

on

impo

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Ownership

Figure 5: Ordered Logit (P=6). Shown with robust, region-clusteredSEs.

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 48: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Contributions

Contributions

I Introduces firm-based theory of trade opinion

I Extends logic of heterogeneous firms to individual level

I Generates and tests novel predictions about distributionalcleavages due to complex globalization

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 49: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Contributions

Contributions

I Introduces firm-based theory of trade opinion

I Extends logic of heterogeneous firms to individual level

I Generates and tests novel predictions about distributionalcleavages due to complex globalization

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 50: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Contributions

Contributions

I Introduces firm-based theory of trade opinion

I Extends logic of heterogeneous firms to individual level

I Generates and tests novel predictions about distributionalcleavages due to complex globalization

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 51: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Future Research

Future Research

I Extension to other policy preferences

I Investigate effect of internal firm organization on employeepreferences

I Campaign finance and/or lobbying behavior by individual firms

I Cross-national variation

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 52: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Future Research

Future Research

I Extension to other policy preferences

I Investigate effect of internal firm organization on employeepreferences

I Campaign finance and/or lobbying behavior by individual firms

I Cross-national variation

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 53: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Future Research

Future Research

I Extension to other policy preferences

I Investigate effect of internal firm organization on employeepreferences

I Campaign finance and/or lobbying behavior by individual firms

I Cross-national variation

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 54: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Future Research

Future Research

I Extension to other policy preferences

I Investigate effect of internal firm organization on employeepreferences

I Campaign finance and/or lobbying behavior by individual firms

I Cross-national variation

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 55: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Descriptive Statistics

JGSS 2008 Descriptive Statistics

variable mean sd p50 min maxProtection 4.25523 1.143816 4 1 7Has Opinion .5097156 .4999648 1 0 1Female .5293839 .499195 1 0 1Age 3.817062 1.667472 4 1 7Household Income 9.497143 3.339243 9 1 19College Graduate .2077825 .4057709 0 0 1Redistribution 3.825756 .9584776 4 1 5Union .191786 .3937798 0 0 1Cosmopolitan Index .5735429 .3075328 .7222222 0 1Globalized Employer .2525597 .4345629 0 0 1Job Insecurity 1.652451 .8024428 1 1 4Temporary Worker .252529 .4345444 0 0 1Disadvantaged Industry .2070004 .4052321 0 0 1Management .180592 .3847518 0 0 1

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 56: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Descriptive Statistics

EASS 2008 Descriptive Statistics

variable mean sd p50 min maxProtection 4.430884 1.54542 5 1 7Has opinion .9959977 .0631405 1 0 1Female .5237278 .4994652 1 0 1Age 46.01556 16.36493 45 18 98Household Income 2.60276 .8229466 3 1 5College Graduate .1735139 .3787127 0 0 1Foreign Employer .0602887 .2380547 0 0 1Temporary Worker .3000843 .4583587 0 0 1Realism 5.104423 1.366118 5 1 7Localism 3.211201 .7057727 3 1 4Cosmopolitanism Index .6236263 .3607997 .6666667 0 1

Lee & Liou Georgetown

Where You Work Is Where You Stand:

Page 57: Where You Work Is Where You Stand: - A Firm-Based Theory ......Intro Lit Review Theory Evidence Conclusion Additional Slides Motivation Motivation I Employers are critical to individual

Intro Lit Review Theory Evidence Conclusion Additional Slides

Geographic Concentration

Geographic Concentration of Globalized Firms

Total Number of Globalized Employers

0

10

20

30

40

50

Labor Productivity

-0.1

0.0

0.1

0.2

0.3

Figure 6: Number Employed by Globalized Firms (L); LaborProductivity (R).

Lee & Liou Georgetown

Where You Work Is Where You Stand: