Exposure to Offshoring and the Politics of Trade Liberalization: Debate and Votes on Free Trade Agreements in the 108th U.s. Congress
Abstract: The movement of jobs overseas, known as offshoring, is one of the most politicized aspects of globalization in the United States. Concerns about the loss of jobs to foreign workers are central to debates about further economic integration. Because trade liberalization reduces the costs of offshoring, it has negative welfare consequences for workers in offshorable jobs in both manufacturing and services. I argue that vulnerability to offshoring introduces a new dimension of protectionist sentiment distinct from skill or industry cleavages. I hypothesize that legislators are more likely to oppose trade liberalization when a larger share of their constituents are vulnerable to offshoring. Looking at debates and roll call votes on free trade agreements (FTAs) in the U.S. House of Representatives between 2003 and 2004, I find that legislators are more likely to discuss the costs of trade for workers and vote against FTAs when constituency vulnerability to offshoring is greater.
