Risk management in a globalizing world. An empirical analysis of individual preferences in 26 European countries.

The risks that people face in everyday life, such as illness and unemployment, can be covered through the market, the government or the community consisting of informal relationships. The market can function with the lowest level of solidarity compared to the other two mechanisms, the government mechanism requires the highest level of compulsory solidarity and communities are associated with voluntary solidarity. Their social context affects people¿s preference for one of the mechanisms. This article investigates to what extent these preferences are influenced by globalization, the economic, social and political openness of countries. The dataset used in this study combines the European Values Study 1999-2000 (EVS), the International Monetary Fund (IMF), and the KOF Index of Globalization, containing information about 31,554 people living in 26 European countries. The results form logistic multilevel analysis show that preferences towards the organization of solidarity are related to the different dimensions of globalization.