Populism and the skill content of globalisation

populism illustration

A new Voxeu Column by Prs Frédéric Docquier, Stefano Iandolo, Hillel Rapoport, Riccardo Turati and Gonzague Vannoorenberghe.

Abstract : The rise of populism worldwide is largely seen as a backlash against globalisation. This column contends that, when examining the determinants of populism, the two dimensions of globalisation – trade and migration – need to be jointly accounted for, as well as their skill content. Low-skill and high-skill globalisation have opposite effects on populism: imports of high-skill goods negatively affect support for right-wing populism, while low-skill immigration results in more right-wing populism and less left-wing populism. Any policy recommendations for protectionism or immigration must consider their skill content and carefully weigh their diverse impacts.

Published on March 25, 2024