Globalization sparks pressure to expand welfare compensation, study finds.
Globalization affects welfare systems differently depending on the type of openness involved. Low-wage competition can lead to more pressure to expand welfare benefits. Different groups within society are impacted in various ways by globalization, with some social policies being affected more than others. This can result in changes to welfare programs, with some aspects being expanded, others reduced, and some remaining unchanged. Data from eighteen OECD countries supports these findings.