Extending the neo-Schumpeterian trade model, we estimate a 'social-gap' model for a group of 17 OECD countries over the period 1975-1995. We find that government spending on social protection, employment protection regulations, union density, strike activity, and income security in the labor...

Countries subject to the same degree of exposure to globalization may experience very different levels of economic insecurity depending on social support or employment protections provided by the state or even due to insurance obtained by households. We identify five varieties of industrialized...