Compensating the Losers: An Examination of Congressional Votes on Trade Adjustment Assistance

Globalization intensifies political conflict between citizens whose circumstances improve from foreign trade and those whose lives deteriorate as a result of trade. To pacify these rival interests, governments may assist citizens who become unemployed due to trade. When and under what conditions will legislators fund such assistance programs? The current study addresses this question by examining Congressional roll call votes in the United States during a period of rapid economic integration (1980–2004). The analysis reveals that protrade legislators who represent relatively more exporters are more likely to vote for increased spending on Trade Adjustment Assistance (TAA) programs. Exporters and their elected representatives arguably support such expenditures to broaden the protrade coalition.