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The compensation hypothesis goes east

FDI and welfare state demand in postcommunist countries

Bibliographic Data

ID6257553
AuthorsCeleste Beesley (0000-0002-6986-6553, Department of Political Science Brigham Young University USA, corresponding author)
Year2020
Volume59
Issue2
Pages354-375
Publication date2020-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEuropean Journal of Political Research (JOURNAL)
Journal identifiersISSN: 0304-4130 • E-ISSN: 1475-6765
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1475-6765.12349
OpenAlexW2954104912
LanguageEN
Citations received3
References cited44

While existing research provides evidence that globalisation sparks citizen demand for the welfare state in wealthy Western democracies, less is known about how globalisation affects public demand for welfare elsewhere. This study explores the link between globalisation and welfare preferences in postcommunist countries by examining workers at multinational corporations (MNCs). These workers have previously been found to have lower levels of job security, even in Western Europe. Additionally, in the postcommunist context, MNC employment also frequently offers better opportunities than other available jobs. This combination of risk and benefit creates higher demand for social insurance (such as unemployment insurance) because MNC workers have both higher job insecurity and higher costs of job loss (if the benefits of MNC employment make it difficult to find an equally good job). Original survey data from Ukraine shows that MNC workers experience greater insecurity and are paid more than other workers. They also express preferences for more expansive welfare programmes, prioritising those related to labour market insurance. This pattern of MNC workers’ experience and preferences is confirmed in cross‐national survey data from 30 peripheral economies, demonstrating that the compensation hypothesis has wider application than previously shown

Business · Context (archaeology · Demographic economics · Economic growth · Economics · Globalization · Immigration · Job security · Labour economics · Market economy · Multinational corporation · Political science · Social insurance · Unemployment · Welfare · Welfare state · Migration and Labor Dynamics · Social Policy and Reform Studies · Taxation and Compliance Studies

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Unique citing works3
Citations per year3
Citation span2025 - 2026 (2)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 3

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