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The Career Effects Of Graduating In A Recession | NBER
The Career Effects Of Graduating In A Recession
https://www.nber.org
[ "Molly Dahl", "Sophie Shin", "Sven Sinclair", "Polina Vlasenko" ]
They also find that recessions lead workers to start out with employers that are smaller on average and pay less. The data suggest that declines ...
Graduating in a recession leads to large initial earnings losses. These losses, which amount to about 9 percent of annual earnings in the initial stage, eventually recede, but slowly -- halving within five years but not disappearing until about ten years after graduation. In the first ten years of work, individuals experience 70 percent of their overall wage growth, change jobs frequently, and often settle on a particular line of business or industry. Those college graduates who enter a robust job market are often considered lucky because more job opportunities are available to them. Those who graduate during a recession have more difficulty finding a job that fits. But, how long lasting is the impact of that good or bad luck? In The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates (NBER Working Paper No. 12159), co-authors Philip Oreopoulos, Till von Wachter, and Andrew Heisz turn to three large administrative data sets for some answers. They analyze data on about 70 percent of Canadian college students and graduates from a wide range of disciplines in the years 1976-95, and individual income tax records and payroll information from 1982-99. The data also include information on the students' courses of study, their annual earnings, and other aspects of their employment or unemployment, including information on the characteristics of the workers' employers early in their careers. The period under study encompasses two distinct recessions. The researchers first analyze the long-term effect of on earnings of a typical recurring shock - an economic downturn - affecting a large group of workers. Then they use the information on employment, job mobility, and employer characteristics over a 10-year period to assess the sources of persistent effects of early labor market conditions. Finally, information about the individual's academic program allows them to investigate whether workers predicted to be less advantaged from the outset actually suffer larger long-term losses and adjust differently to an initial shock. There are three central findings in this study. First, luck matters, because graduating in a recession leads to large initial earnings losses. These losses, which amount to about 9 percent of annual earnings in the initial stage, eventually recede, but slowly -- halving within five years but not disappearing until about ten years after graduation. Second, initial random shocks affect the entire career. Graduating in a recession leads workers to start at smaller and lower paying firms, and they catch-up by switching jobs more frequently than those who graduate in better times. Third, some workers are more affected by luck than others. In particular, earnings losses from temporarily high unemployment rates are minimal for workers with two or more years of work experience and are greatest for labor market entrants. Among graduates, those with the lowest predicted earnings suffer significantly larger and much more persistent earnings losses than those at the top. The results suggest that changes in the quality of jobs and job mobility are important in explaining the long-term effects of bad luck for those graduating in a recession. For example, Oreopoulos, von Wachter, and Heisz note that mobility among jobs and industries initially will rise and then, gradually, will decline in response to an initial adverse shock -- this implies that graduating from college in a recession reduces the quality of initial employment. However, moving from job to job proves to be highly productive for young graduates, and this is even more the case for workers affected early on by restricted job markets. The subsequent increased job search can explain about 30 percent of the reversion in initial wage losses, the authors find. They also find that recessions lead workers to start out with employers that are smaller on average and pay less. The data suggest that declines in the size and average wages of first employers of young college graduates could explain about 30-40 percent of the initial wage losses from starting a career in a recession. Labor market entry in bad times leads to less desirable job placement, or mismatches of workers into firms, and workers catch up by searching for and getting themselves into more desirable firms. Oreopoulos, von Wachter, and Heisz further find that college graduates at the bottom of the wage-and-ability distribution experience larger and more persistent losses, while for those at the top the effects are small and short-lived. The researchers believe that the (present discounted value of) losses in annual earnings could be three to four times larger for the least relative to the most advantaged workers. This suggests an even larger degree of dispersion in the costs of recession, even within the group of college graduates. The patterns discerned in the data support the importance of job mobility and changes in firm quality, the authors conclude, with the exception of those least advantaged, who suffer permanent earnings losses and are permanently relegated to lower wages. -- Matt Nesvisky
2006-11-01T00:00:00
https://www.nber.org/digest/nov06/career-effects-graduating-recession
[ { "date": "2006/11/01", "position": 29, "query": "economic recession equity in the workplace" } ]
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Technology and Labor Regulations | NBER
Technology and Labor Regulations
https://www.nber.org
[ "Alberto Alesina", "Joseph Zeira", "Molly Dahl", "Sophie Shin", "Sven Sinclair", "Polina Vlasenko" ]
European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum wage laws, permanent ...
Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the US, while technological progress at the "top", i.e. at the high-tech sector, is faster in the US than in Europe. This paper suggests that the main difference between Europe and the US in this respect is their different labor market policies. European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum wage laws, permanent unemployment subsidies, firing costs, etc. Such policies create incentives to develop and adopt labor saving capital intensive technologies at the low end of the skill distribution. At the same time technical change in the US is more skill biased than in Europe, since American skilled wages are higher. In the last few years some partial labor market reforms in Europe may have started to slow down or even reverse this trend.
2006-10-13T00:00:00
2006/10/13
https://www.nber.org/papers/w12581
[ { "date": "2006/10/13", "position": 37, "query": "technology regulation wage distribution" } ]
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Computer use and the U.S. wage distribution, 1984-2003
Computer use and the U.S. wage distribution, 1984-2003
https://ideas.repec.org
[ "Robert G. Valletta", "Author", "Listed" ]
I investigate this link by testing for direct effects of rising computer use on the distribution of wages in the United States. Analysis of data from the ...
Given past estimates of wage increases associated with workplace computer use and higher usage rates among more skilled workers, the diffusion of computers has been interpreted as a mechanism for skill-biased technological change and consequent widening of the earnings distribution. I investigate this link by testing for direct effects of rising computer use on the distribution of wages in the United States. Analysis of data from the periodic CPS computer use supplements over the years 1984-2003 reveals that the positive association between workplace computer use and wages declines at higher skill levels, with the notable exception of a higher return to computer use for highly educated workers that emerged after 1997. Over my complete sample frame, however, the net association between rising computer use and the distribution of wages was quite limited. For broad groups defined by educational attainment, rising computer use was associated with rising between-group inequality that was offset by falling within-group inequality, suggesting that computers have exerted a \"leveling\" rather than a \"polarizing\" effect on wages. These are the items that most often cite the same works as this one and are cited by the same works as this one. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfwp:2006-34. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
2006-08-06T00:00:00
2006/08/06
https://ideas.repec.org/p/fip/fedfwp/2006-34.html
[ { "date": "2025/04/01", "position": 21, "query": "technology regulation wage distribution" } ]
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Why Innovation in Health Care Is So Hard - Harvard Business Review
Why Innovation in Health Care Is So Hard
https://hbr.org
[ "Regina E. Herzlinger", "Is The Nancy R. Mcpherson Professor Of Business Administration At Harvard Business School", "The Author Of Multiple Books" ]
Medical specialists wage turf warfare for control of patient services, and insurers battle medical service and technology providers over which treatments and ...
Health care—in the United States, certainly, but also in most other developed countries—is ailing and in need of help. Yes, medical treatment has made astonishing advances over the years. But the packaging and delivery of that treatment are often inefficient, ineffective, and consumer unfriendly.
2006-05-01T00:00:00
2006/05/01
https://hbr.org/2006/05/why-innovation-in-health-care-is-so-hard
[ { "date": "2023/07/01", "position": 95, "query": "technology regulation healthcare workers" }, { "date": "2024/07/01", "position": 99, "query": "technology regulation healthcare workers" } ]
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How to Form a Labor Union - LegalMatch
How to Form a Labor Union
https://www.legalmatch.com
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The International Brotherhood of Teamsters is another example of a labor organization. It represents a number of blue-collar workers ...
Many states have laws addressing the subject of unions, as well as state labor union rules and regulations, in addition to the federal NLRA. Several of these states have legislation that resembles the NLRA. Employers not covered by the federal law may nevertheless be subject to them. The National Labor Relations Board (NLRB), an administrative body that adjudicates conflicts between employers and unions, was formed by the NLRA. The NLRB also chooses which union will represent a particular set of workers. The Board has developed rules and steps for organizing unions. Additionally, the NLRB employs a General Counsel who develops policies and guidelines for collective bargaining and looks into unfair negotiating complaints from employers or unions. The Taft-Hartley Act, an addendum to the NLRA, further controls unions by prohibiting them from pressuring workers into joining or refusing to engage in good-faith negotiations with employers. Additionally, the act restricts unions from levying excessive dues and prohibits the use of threats or violence to advance union agendas. The National Labor Relations Act (NLRA), passed by Congress in 1935, is the union labor law that provides protection for labor unions. The NLRA protects workers’ rights to union representation. Additionally, the NLRA forbids employers from interfering with their employees’ decision to join a union. Additionally, it supports collective bargaining through its provisions. The International Brotherhood of Teamsters is another example of a labor organization. It represents a number of blue-collar workers, including truck drivers, warehouse workers, sanitation workers, and construction workers. The union bargains for wages, benefits, and working conditions for its members. The CBA specifies issues like the minimum wage a player may be paid, the season’s schedule, and the terms of free agency. This gives people some leeway to set up their own contracts while allowing the MLBPA to negotiate to assure particular terms for its players. The Major League Baseball Players Association serves as an illustration of a labor union. The union represents baseball players who work for Major League Baseball teams. Although every player has the right to discuss contract details with their clubs, the MLBPA bargains with Major League Baseball to create a collective bargaining agreement (CBA). A group of workers who band together to negotiate on an equal basis with management is known as a labor union. Employers are more inclined to hear the complaints of employees who are members of a labor organization since they have a collective voice. What Activities are Forbidden? The NLRA forbids certain union activities, such as the following: A threat to terminate workers’ employment if they don’t support the union; Seeking to penalize a worker for not belonging to a union despite the worker having paid or pledged to pay the necessary dues; Refusing to address a grievance filed by an employee in a jurisdiction where union security clauses are prohibited because the employee has insulted the union or because the employee is not a union member; Attempting to impose fines on workers who have lawfully quit their union or crossed an illegal picket line; Behavior on picket lines, such as making threats, hitting people, or preventing non-strikers from entering the employer’s property; Striking about topics such as politics that have nothing to do with the terms and conditions of employment. When a union is certified by the vote of the workers in a particular place of employment, the NLRA imposes a duty on both employer and union to engage in “good faith” collective bargaining over the future terms and conditions of employment. Collective bargaining happens when employers and unionized employees meet and negotiate the terms and conditions of employment in the employer’s business. How Is a Labor Union Formed? There are two options for workers interested in starting a union: either they can choose an existing union or start their own. It is highly challenging to start a new union; most frequently, workers unionize through labor union elections. In any case, the NLRB must certify a union (a federal agency). Here are the steps to forming a union. Before expressing their readiness to organize a union, an employee must first sign an authorization card. A minimum of 30% of the workforce must sign the ballots for an election to form a union. A majority of the workers must sign the cards in order for a new union to be formed. A union cannot be formed in any other case. If enough authorization cards have been signed, they are sent to the NLRB for approval of a union election as an appropriate bargaining unit (ABU). Only ABU employees will have their union election approved by the NLRB. This indicates that the workers are non-management and work in a nearby geographic area. They also have similar obligations placed on them. If the aforementioned conditions are satisfied, the NLRB will certify and preside over a union election. How Many Employees Are Needed to Form a Labor Union? Employees can unionize even if the company just has a small number of non-supervisory employees. All private enterprises participating in interstate commerce are subject to the National Labor Relations Act, which essentially applies to every small firm in the country. A suitable “bargaining unit” under the NLRA might be composed of two or more qualified employees who “have a community of interest.” How Are Labor Union Elections Held? The NLRB presides over a union election during the process of forming a union. Employees of the NLRB ensure that the election is free and open to all eligible voters. The NLRB next tallies the ballots and appoints the winning union as the negotiating agent for the electorate of workers. The old collective bargaining agreement remains in effect until a new one can be decided upon and put into effect if an existing one expires before the parties can agree to a new one. Of course, the agreement must be approved by a majority of the union members before it can go into force. Naturally, a collective bargaining agreement might be extended if both sides so desire. To do so, the membership would need to approve the extension by a majority vote, at which point the agreement would become effective. The deal would need to be renegotiated if the membership were to reject it. All of the terms and conditions of employment, including pay, overtime pay, the availability of paid vacation days and their value, the availability of paid sick days and their value, the conditions under which benefits are provided to employees, and other factors, may be covered by a collective bargaining agreement. How Can a Lawyer Help Me? The day-to-day operations of a union to representation in federal and state courts, boards, and commissions are just a few of the topics that a labor relations lawyer may address. Thus, to ensure that your labor law concerns are appropriately addressed, talking with a professional and experienced labor lawyer is essential. Typically, the union’s representatives will hire the union’s attorney. Depending on its size, a union may hire more than one attorney for extraordinary circumstances, such as when the union needs to represent itself in court and another to handle its regular legal matters. If you ever need to engage a labor relations attorney, you want to be sure they have the expertise and are knowledgeable about that branch of the law.
2005-01-14T00:00:00
2005/01/14
https://www.legalmatch.com/law-library/article/how-to-form-a-labor-union.html
[ { "date": "2022/11/09", "position": 91, "query": "worker organization labor unions blue collar workers" }, { "date": "2022/11/09", "position": 93, "query": "worker organization labor unions blue collar workers" } ]
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Workers' Rights In The United States | Union for Reform Judaism
Workers' Rights In The United States
https://urj.org
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Those who oppose right-to-work laws point out that union security agreements require employees to pay only core dues-dues that cover the ...
Submitted by the Commission on Social Action of Reform Judaism to the 68th Union for Reform Judaism General Assembly Passed - Houston, November 2005 Background In 1935, Congress enacted the National Labor Relations Act (NLRA), also known as the Wagner Act. The act codified the basic rights of most workers to bargain collectively through representatives of their own choosing and sanctioned activities, including strikes, designed to protect their bargaining rights. The NLRA also set up an enforcement body, the National Labor Relations Board, to administer the act and provide federal oversight over union representation elections. In recent years, workers' rights to organize and bargain collectively have come under increasing attack, and gaps in existing law provide insufficient protection for many workers. For example, the NLRA has never offered protections to certain categories of workers, including agricultural workers. Furthermore, since 1935, changes in both U.S. labor law and in the workforce have weakened the ability of workers to organize unions. Current penalties for unfair labor practices, particularly the discriminatory discharge of union supporters, are not strong enough to be a deterrent to employers that are fighting organizing drives. The current remedy for an employer's unfair labor practices is to require reinstatement of workers with back pay, reduced by any interim earnings. That penalty, however, may take up to two years before it is imposed and is too easily written off as just another business expense. Employees seeking union representation face an election process that favors opponents of unionization and allows employers a disproportionate role. Increasing penalties for unfair labor violations only partially addresses the current power imbalance in the election process. In "Free and Fair: How Labor Law Fails U.S. Democratic Election Standards," University of Oregon Professor Gordon Lafer evaluated the rules surrounding union elections according to six democratic elections standards (equal access to information, freedom of speech, equal access to the voters, absence of voter coercion, timely implementation of the voters' will and campaign finance regulation) and found that union elections fail all six tests. For example, while employers have access to employees throughout the work day, union representatives have access to employees only after work hours when and if they can find them. Specifically, during a representation election campaign, employers frequently require employees to attend "captive audience" meetings, in which company representatives attempt to deter employees from voting in favor of unionization. At the same time, employers routinely prevent employees from discussing their union activities on the job through rules against solicitation. Furthermore, union representatives are often barred from distributing information in publicly accessible parking lots in which employees park their cars while at work. These inequities are exacerbated by delays in processing representation petitions and directing an election, often because of disagreements over who belongs in the appropriate bargaining unit. During a delay, an election can be made to seem futile; the impending petition freezes most changes and delay thus becomes a tool to discourage employee support for representation. Furthermore, delay increases the opportunity for an employer who chooses to use unlawful tactics to defeat an election campaign to do so. In addition, delay can increase the acrimony that makes negotiating a first contract following a successful representation election difficult. Delay and lack of access are both matters that can be dealt with by procedural reform. Prospective employee representatives should be provided equal access to employees within the workplace and elections should be conducted early, allowing employees whose status is at issue to vote subject to challenge and impounding ballots until other issues are resolved. Though the NLRA, along with the Fair Labor Standards Act (FLSA), provides protections for most American workers, state labor laws also play an important role in guaranteeing U.S. workers' ability to exercise their right to organize. State laws govern labor relations for all workplaces not engaged in interstate commerce. Some states, like New York and California, have created model labor relations legislation. These states not only protect the organizing rights of both public sector and private employees, but they also provide this protection to agricultural workers who, though frequently engaged in the work of interstate commerce, have never been protected by the NLRA. Other states have been less proactive in enacting legislation that protects worker rights. In many states, state employees are not provided with legal protections to ensure their right to organize, and recent decisions by Missouri and Indiana governors to rescind collective bargaining agreements with state employees suggest that there is a movement at the state level to roll back worker rights protections. In many states, "right-to-work" laws create an impediment to effective union representation. Although the National Labor Relations Act authorizes employers and unions to enter into collective bargaining agreements that require employees to pay union dues after they become employed, such agreements are not permitted in states with right-to-work laws. Advocates of right-to-work laws argue that this legislation allows individuals who disagree with their union's political activities to avoid supporting positions that violate their conscience, and that employees who do not wish to pay dues should not be required to do so. Those who oppose right-to-work laws point out that union security agreements require employees to pay only core dues-dues that cover the expenses for negotiating and enforcing collective bargaining agreements-and not expenses for political activities or organizing other employees. Because unions are obligated to bargain on behalf of all members of the bargaining unit and to represent all bargaining unit members in grievance proceedings-whether or not they pay dues-right-to-work laws make it financially more difficult for unions to effectively represent workers. The ability to organize and to engage in collective bargaining can make a significant difference in the lives of American workers. According to the Economic Policy Institute, the union wage premium-the degree to which union wages exceed non-union wages-is 15.5 percent when adjusted for comparable experience, education, region, industry, occupation and marital status. For minorities, this premium is even greater: 20.9 percent for African Americans and 23.2 percent for Hispanics. But the right to organize is not only an economic issue; it is also a human rights issue. The 1948 Universal Declaration of Human Rights asserts that "[E]veryone has the right to form and to join trade unions for the protection of his interests." As employers are increasingly able to move their capital across international borders, ensuring that workers' rights are protected both domestically and abroad is a critical part of the fight against human rights abuses and global poverty. In its 2001 study on organizing rights in the United States, Human Rights Watch found that "workers' freedom of association is under sustained attack in the United States, and the government is often failing its responsibility under international human rights standards to deter such attacks and protect workers' rights." Worker health and safety also remains a serious concern. Currently, willful violations of safety regulations that result in a fatality are only misdemeanors, and the Occupational Safety and Health Administration (OSHA) rarely recommends cases to the Justice Department for prosecution. Judaism has a strong tradition of supporting the right to employment with dignity. We are taught in the Torah, "You shall not abuse a needy and destitute laborer, whether a fellow Israelite or a stranger in one of the communities of your land. You must pay out the wages due on the same day, before the sun sets, for the worker is needy and urgently depends on it; else a cry to the Eternal will be issued against you and you will incur guilt" (Deut. 24:14-15). Later tradition expands on this teaching by addressing not only wages but also working conditions. The rabbis of the Talmud taught in the case in which an employer says to workers, "I raised your wages in order that you would begin early and stay late," they may reply, "You raised our wages in order that we would do better work" (Bava M'tzia 83a). While Jewish law traditionally assumed that an individual contract between an employer and an employee regulates workplace relationships, with the rise of the industrial economy in the nineteenth century, many Jewish workers in Europe and in North America realized that their livelihood and safety depended on collective action. In the United States, Jewish immigrants played a dominant role in the founding of several unions, including the International Ladies' Garment Workers Union and the Amalgamated Clothing Workers of America, and in 1935, Jewish activists joined with fellow members of the labor movement to support the passage of the NLRA. Both the Union for Reform Judaism and the Central Conference of American Rabbis have been active supporters of workers' rights, and the Union's own administrative and maintenance staff are unionized. In a series of resolutions beginning in the early 1960s, the Union and the CCAR extended their support to agricultural workers seeking better working conditions and union recognition. In 1997, the Union and the CCAR affirmed their support for worker dignity, speaking out forcefully against sweatshops and child labor both at home and abroad in their resolutions on "Sweatshops and Child Labor." These resolutions also called upon the U.S., Canadian, state and provincial governments to "provide for adequate staffing and funding to enforce existing workers' protection statutes." In 1999, the Union adopted a resolution supporting living wage campaigns, which would "require that to qualify for government contracts or assistance, service providers must pay their employees living wages, often defined as no less than the poverty line for a family of four." In 2003, the Commission on Social Action of Reform Judaism passed a resolution in support of the rights of federal employees to bargain collectively. There is, however, no general resolution that deals more broadly with workers' rights to organize and bargain collectively. Therefore, the Union for Reform Judaism resolves to:
2005-01-10T00:00:00
https://urj.org/what-we-believe/resolutions/workers-rights-united-states
[ { "date": "2005/01/10", "position": 81, "query": "worker organization labor unions worker rights" }, { "date": "2005/01/10", "position": 98, "query": "worker organization labor unions worker rights" } ]
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Guide to Labor Unions - Employment Law - LegalMatch
Guide to Labor Unions
https://www.legalmatch.com
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Labor union laws by state vary widely. Some states have “right-to-work” laws, which means that employees cannot be compelled to join a union as a condition of ...
The labor movement has a rich history, with organizations ranging from local labor unions catering to specific industries or regions to the national labor union, which operates on a larger scale, often addressing broad-based concerns and advocating for workers’ rights at the national level. A labor union, often simply referred to as a “union,” is an organized group of workers who collectively bargain with employers about conditions related to employment, such as wages, working hours, and workplace safety. Labor Union Laws Labor union laws by state vary widely. Some states have “right-to-work” laws, which means that employees cannot be compelled to join a union as a condition of employment. On the other hand, some states provide more robust protections for union activities. Apart from state-specific laws, federal laws govern union activities across the country, ensuring a baseline of rights for union workers. How To Form a Labor Union? If a group of workers decides to form a union, they typically follow these steps. Initial Organization: Workers Discuss the Possibility of Unionizing At this preliminary stage, workers typically gather informally to discuss the need and potential benefits of forming a union. These discussions may arise due to persistent workplace issues, such as low wages, unsafe working conditions, or a lack of benefits. Communication can occur during breaks, after work hours, or in off-site locations to ensure privacy. Employees may also begin researching the benefits of unionization and the processes involved. Seek Affiliation: Joining a Local or National Labor Union Once the idea has gained traction among the workers, they might consider affiliating with an existing union. By doing so, they can tap into: Experience : Existing unions have faced and overcome many challenges, and their expertise can be invaluable for workers trying to form a new union. : Existing unions have faced and overcome many challenges, and their expertise can be invaluable for workers trying to form a new union. Resources : From legal advice to financial backing and organizational tools, an established union can provide resources that would be otherwise unavailable or difficult to secure. : From legal advice to financial backing and organizational tools, an established union can provide resources that would be otherwise unavailable or difficult to secure. Training: Many established unions offer training sessions on workers’ rights, negotiation tactics, and more for new members. Sign Authorization Cards: Formal Interest Declaration Authorization cards serve as a formal declaration of a worker’s interest in unionizing. Here’s how they work: Distribution : Workers or union organizers distribute these cards discreetly among interested employees. : Workers or union organizers distribute these cards discreetly among interested employees. Privacy : The signing of these cards is confidential. Employers often oppose unionization, so workers must maintain privacy during this phase. : The signing of these cards is confidential. Employers often oppose unionization, so workers must maintain privacy during this phase. Threshold: Usually, a certain percentage of workers (often around 30%) must sign these cards before moving on to the next step. Petition for Representation: Filing with the National Labor Relations Board (NLRB) With enough signed authorization cards, a petition can be filed with the NLRB to request a formal election. This step is crucial because: Verification : The NLRB will verify the validity of the signed authorization cards and ensure that the minimum threshold is met. : The NLRB will verify the validity of the signed authorization cards and ensure that the minimum threshold is met. Setting Terms: If the petition is approved, the NLRB works with the employer and the union to set the terms of the election, including the date, location, and eligible voters. Election: A Vote for Unionization The culmination of the organizing process is the election, and here’s what it entails: Secret Ballot : The election is typically done through a secret ballot. : The election is typically done through a secret ballot. Majority Rules : For the union to be officially recognized, a majority of the voting workers must vote in favor of unionization. : For the union to be officially recognized, a majority of the voting workers must vote in favor of unionization. Post-Election: If the union is voted in, it becomes the official representative of the workers for collective bargaining purposes. If the union is voted down, workers may have to wait a set period (typically one year) before attempting to unionize again. The entire process requires patience, commitment, and solidarity among workers. Being well-informed and organized can significantly increase the likelihood of successful union formation. What Is the Fair Labor Standards Act? The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and other employment standards affecting both full-time and part-time workers in the private sector and in federal, state, and local governments. What Rights Do I Have If I Join a Union? Joining a union provides a worker with several rights, including the following. Collective Bargaining: Negotiating Wages, Working Conditions, and Benefits Collective bargaining is one of the fundamental rights granted to unionized workers. It’s the process by which workers, through their chosen representatives (typically union leaders), negotiate with their employer regarding various aspects of their employment. Here’s how it’s significant: Leveling the Playing Field: Collective bargaining prevents individual workers from negotiating terms on their own, which could put them at a disadvantage against larger employers. Collective bargaining prevents individual workers from negotiating terms on their own, which could put them at a disadvantage against larger employers. Contractual Agreements: The outcome of collective bargaining is often a legally binding contract (sometimes called a “collective bargaining agreement” or CBA). This contract sets the terms of employment and can cover everything from salary scales and overtime pay to health benefits, vacation time, and safety protocols. The outcome of collective bargaining is often a legally binding contract (sometimes called a “collective bargaining agreement” or CBA). This contract sets the terms of employment and can cover everything from salary scales and overtime pay to health benefits, vacation time, and safety protocols. Dispute Resolution: CBAs often include provisions on handling disputes, such as grievance procedures or arbitration processes, providing workers a structured way to address issues. Protection Against Unfair Treatment: Safeguarding Workers’ Rights Unions play a pivotal role in ensuring that their members are treated fairly. Here’s what that protection looks like: Grievance Processes: Most unions have established procedures that workers can follow if treated unfairly. This might involve formal meetings, mediation, or even arbitration. Most unions have established procedures that workers can follow if treated unfairly. This might involve formal meetings, mediation, or even arbitration. Protection Against Unfair Dismissal: With a union’s backing, it becomes more challenging for employers to dismiss workers without a valid reason. Unions can challenge dismissals they deem unfair or without proper cause. With a union’s backing, it becomes more challenging for employers to dismiss workers without a valid reason. Unions can challenge dismissals they deem unfair or without proper cause. Safety and Health: Unions often advocate for better workplace safety standards, ensuring their members have safe working conditions. Representation: Support During Disciplinary Processes Having the right to representation during disciplinary meetings is invaluable for workers. Here’s why: Voice and Advocacy: Union representatives can speak on behalf of the worker, ensuring their side of the story is heard and understood. Union representatives can speak on behalf of the worker, ensuring their side of the story is heard and understood. Knowledge and Experience: Union representatives often deeply understand workplace rights and the specific terms of collective bargaining agreements. Their expertise can be crucial in navigating complex disciplinary issues. Union representatives often deeply understand workplace rights and the specific terms of collective bargaining agreements. Their expertise can be crucial in navigating complex disciplinary issues. Moral Support: Disciplinary processes can be intimidating. Having a representative present can provide emotional and moral support, letting the worker know they aren’t facing the situation alone. Disciplinary processes can be intimidating. Having a representative present can provide emotional and moral support, letting the worker know they aren’t facing the situation alone. Ensuring Fairness: With a representative present, employers are more likely to follow correct procedures and avoid potential biases, ensuring that the disciplinary process is fair and just. Each of these rights highlights the power and importance of unions in balancing the dynamic between workers and employers. Through collective action and solidarity, unions aim to ensure that workers are treated with the respect and fairness they deserve. What Does the Labor Management Reporting and Disclosure Act Provide? This act, commonly known as the Landrum-Griffin Act, protects union members from corrupt activities and ensures transparency and democracy within labor organizations. It mandates reporting by labor unions, consultants, and employers and guarantees certain rights for all union members. Wage Disputes and the Law Wage disputes arise when there’s a disagreement between the worker and the employer regarding payment. This could be due to unpaid overtime, breach of contract, or unpaid wages. Labor unions often support members in such disputes, ensuring they are paid fairly and per the law. What Do Union Lawyers Do? Union lawyers represent unions and their members. They might: Advocate for workers in labor union lawsuits. Provide legal advice during collective bargaining. Defend the rights of the union and its members in disputes with employers. Seeking Help From an Employment Attorney If you’re facing issues related to labor unions, wages, or any other employment-related concern, an attorney can provide crucial guidance. Knowing your rights and responsibilities is essential whether you’re a union member, an individual worker, or an employer. Are you considering a labor union lawsuit or need guidance on labor laws? Connect with an experienced labor lawyer through LegalMatch today. They can help you understand the complexities of employment law, ensuring that your rights are protected and upheld.
2004-12-29T00:00:00
2004/12/29
https://www.legalmatch.com/law-library/article/union-labor-law.html
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Unions and wage inequality | Journal of Labor Research
Unions and wage inequality
https://link.springer.com
[ "Card", "University Of California", "Lemieux", "University Of British Columbia", "Vancouver", "Riddell", "W. Craig", "Berkeley", "David Card", "Bc" ]
The impact of unions on the structure of wages has recently attracted renewed interest as analysts have struggled to explain the rise in earnings inequality.
The impact of unions on the structure of wages has recently attracted renewed interest as analysts have struggled to explain the rise in earnings inequality in several industrialized countries. Canada, the United Kingdom, and the United States provide a potentially valuable set of countries for examining this question. All three countries now collect comparable data on wages and union status in their regular labor force surveys. Several features of the collective bargaining institutions of these countries make them suitable for studying the relationship between unions and wage inequality. Bargaining is highly decentralized; there are no general mechanisms for extending collective bargaining provisions beyond the “organized” sector; and the fraction of the work force covered by collective bargaining is relatively modest. Thus it is possible to compare the structure of wages for workers covered by union contracts to those who are not covered, and potentially infer the effect of unions on overall wage inequality.
2004-12-06T00:00:00
2004/12/06
https://link.springer.com/article/10.1007/s12122-004-1011-z
[ { "date": "2023/01/01", "position": 81, "query": "worker organization labor unions wage distribution" }, { "date": "2024/07/01", "position": 79, "query": "worker organization labor unions wage distribution" } ]
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America's Looming Creativity Crisis - Harvard Business Review
America’s Looming Creativity Crisis
https://hbr.org
[ "Richard Florida", "Is A University Professor At The Rotman School Of Management", "Distinguished Scholar-In-Residence At The School Of Cities", "University Of Toronto", "As Well As An Academic Adviser To Bcg Henderson Institute." ]
... economic growth are sure to follow. The Dawn of the Creative Age. There's a whole new class of workers in the U.S. that's 38 million strong: the creative class.
The United States of America—for generations known around the world as the land of opportunity and innovation—is on the verge of losing its competitive edge. It is facing perhaps its greatest economic challenge since the dawn of the industrial revolution. This challenge has little to do with business costs and even less with manufacturing prowess. And, no, the main competitive threats are not from China or India.
2004-10-01T00:00:00
2004/10/01
https://hbr.org/2004/10/americas-looming-creativity-crisis
[ { "date": "2024/04/01", "position": 61, "query": "economic recession creative workers" }, { "date": "2025/04/01", "position": 79, "query": "economic recession creative workers" } ]
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Intercultural competence and its relevance for international ...
Intercultural competence and its relevance for international diplomacy
https://www.diplomacy.edu
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The research presented in this paper serves to inform current and future planning for the selection, training, and evaluation of international diplomats.
An ever increasing consensus suggests that the field of international diplomacy is becoming more complicated due to many factors, including the pressures of globalization, the threat of terrorism, and the technological revolution. That international diplomats and others managing and working on international projects need to become more knowledgeable and skilled in the art of working across cultures is a given. We believe that Jonas Stier echoes the conviction and wish of the world community when he writes that “It seems inevitable that future generations, in order to function in a global world, will see the value of intercultural competencies and be more prone to seek knowledge and experiences outside their home country.” However, two key questions remain to be answered. First, what do we know about what it takes to be interculturally competent? And second, what can we do to better enable individuals and organizations to become interculturally competent? This paper, organized into three sections, will attempt to answer these two questions. The first part will present some of the key research findings on expatriate intercultural competence, derived primarily from the extensive study of professionals working in international development, business, and peacekeeping. In the second part, we will discuss the relevance of these research findings for those working in the field of international diplomacy. Finally, the third part will describe a major project undertaken by the Centre for Intercultural Learning (CIL) aimed at establishing clear and measurable indicators of intercultural competence, the results of which were to become the foundation for a new approach for the selection, training, and evaluation of international personnel. Research on Expatriate Intercultural Competence: Key Findings Much research on intercultural competence derives from the study of sojourners, people who go to live and work in another culture on a temporary basis but often for an extended period. Sojourner groups include business personnel, military personnel, foreign students, international development advisors, diplomats, emergency relief workers, and international peacekeepers. Professionally, the authors have had extensive experience studying the experience of sojourners and developing standards for the selection, training, and evaluation of international personnel. What follows is a review of some of the key research findings on intercultural competence derived primarily from over two decades of work by Kealey and colleagues. It should be noted, however, that many of the findings reported have indeed been replicated in research undertaken by others in the same period. A Definition of Expatriate Intercultural Competence Two major challenges confront all people making an international transition. The first challenge has to do with the person’s capacity to become well-adjusted and personally satisfied in the new culture. The second challenge has to do with the person’s potential to function and work effectively in the new environment. Accordingly, by our definition, an interculturally competent person is someone who is able to live contentedly and work successfully in another culture. Further, our research has found that what predicts the ability to live contentedly in a new culture often differs from what is needed to achieve professional success. For example, we have often found in our work assessing candidates for international assignments that an individual or couple might possess the emotional readiness and personal skills needed to adapt to the new environment, yet lack other skills (such as relationship building, social and cultural insight) needed to work effectively in the new culture. The reverse also occurs commonly. Effectiveness versus Satisfaction In a study of Canadian development advisors it was determined that only 20% of advisors were rated by colleagues and supervisors as highly effective at their jobs whereas over 75% reported a high level of personal satisfaction on their foreign assignment. These findings are in keeping with the results of other research on international business personnel. One explanation for this finding is that expatriates derive their satisfaction from “living the foreign lifestyle” (enjoying frequent socializing with other expatriates, having servants, etc.) rather than from meeting professional challenges. In a recent study of Canadian peacekeepers it was reported that 92% of Canadian civilian peacekeepers in Kosovo would readily undertake a second peacekeeping mission but less than a third were rated as highly effective interculturally. Interviews identified the excitement and adventure of the assignment as being particularly motivating and satisfying. The Role of Previous Overseas Experience Kealey also found that Canadians with previous overseas experience generally adjusted to life in a new country more quickly and easily than those on their first overseas assignment. They reported lower levels of stress than those without overseas experience and higher levels of satisfaction. The study found, however, that ease of adjustment is not predictive of effectiveness in transferring skills and knowledge, despite the fact that advisors with prior experience express confident expectations prior to departure and rate themselves as being highly effective once they are working overseas. When rated by their peers, counterparts, and researchers, these advisors did not rate as more effective than those without overseas experience. In fact, too much previous experience may lead to complacency, forming a barrier to establishing effective relationships with nationals. This finding is important for its implications in the selection of candidates for overseas assignments. To date, previous experience has been an important factor in selecting people for overseas assignment. Too often, otherwise qualified people are eliminated from the selection process because they lack international experience, a fact clearly demonstrated in this study where only 35% of the sample were on their first overseas assignment. While previous experience does have some merits, its importance as a selection criterion should be tempered. Such an action would have the added benefit of enlarging the pool of talent from which to select overseas advisors. Culture Shock and Effectiveness Many researchers have identified a number of interpersonal skills associated with overseas effectiveness. However, Kealey found that the presence of those skills – flexibility, respect, attentiveness, cooperation, control, and sensitivity is also associated with greater difficulty in adjusting to a foreign culture. People who were judged by their peers to be most effective overseas were also likely to experience the greatest degree of culture shock during the transition period. Although these findings seem counterintuitive, they are perhaps not surprising. People with well-developed interpersonal skills place a high value on the people in their lives. In moving to a foreign culture, they are cut off from their friends and family in Canada and are unknown in their new environment. They experience acculturative stress from both a sense of loss of the old and familiar and a confrontation with the new and unfamiliar. That initial sense of loss is diminished as they become settled in the new environment and establish new relationships. These findings have important implications for the selection of overseas personnel. To date, many recruiters have stressed adaptability as a primary consideration for selection and look for an individual who will experience the least acculturative stress, that is, someone who can move to a foreign country and begin functioning immediately. Results of this study recommend against this practice as at least some of the individuals who ultimately will be most successful will also undergo severe acculturative stress. By selecting only those individuals judged as highly adaptable, recruiters of international personnel may be screening out some of the best candidates. The Reality of Culture Shock and the Stages of Adaptation Although people may be unaware of experiencing culture shock on an international assignment, almost all sojourners experience some degree of culture shock or culture fatigue during their stay in a new culture. Research has also identified three distinct phases in the process of adaptation. An initial stage of elation is followed by a period of depression which usually gives way to renewed feelings of satisfaction. This was identified as the “U” curve theory of cross-cultural adaptation and it still remains valid for sojourners today although the timing and severity of the down phase (the “culture shock” or “culture fatigue” stage) varies greatly depending on prior experience and pre-departure knowledge and expectations. That the experience of fatigue and stress on encountering a new culture can seriously affect performance is clear and for this reason pre-departure training sessions usually include training on how to recognize and cope with this experience. The Reality of the Expatriate Ghetto Research on sojourners reveals the tendency of expatriates to socialize among themselves, that is, to live in an expatriate ghetto. Although this has the advantage of providing a support structure for those expatriates, it also serves as a barrier to becoming interculturally effective. The study of Canadian development advisors determined that the 20% of advisors who were rated highly effective at their jobs tended to be more involved with the local people and the host culture and had made an effort to learn and use the local language. Interestingly, these advisors paid a price, for they tended also to be rejected by their fellow countrymen who likely were threatened by such behavior. Torbiorn reports a similar finding in his research on Swedish business personnel working in other cultures. Hardship and Satisfaction Canadians posted to countries with severe living and working conditions tend to report higher levels of satisfaction than those assigned to countries of lesser hardship. Faced with a difficult situation, people tend to bond together for mutual support. This serves to increase the morale and effectiveness of the team. It is this experience of camaraderie which returning soldiers from World War II and other military expeditions described as so personally enriching and so powerful in its effects. Headquarters versus Field One of the recurring findings in the studies of sojourner groups is the difficulty of communication between personnel working in the field and headquarters managers. Overall, field personnel report that they do not feel understood, supported, or trusted by headquarters’ managers. They feel that managers at headquarters are out of touch with the reality of the field, make decisions and give directions that inhibit rather than enhance their effectiveness. Profile of Skills for Intercultural Effectiveness Over the past 50 years, extensive empirical research has attempted to identify the skills, knowledge, and attitudes needed to live and work in another culture. Recent research continues to replicate previous findings and thus serves to confirm the validity of a set of general traits and skills needed to be successful in another culture. Traits such as relationship building, respect, tolerance for ambiguity, flexibility, realistic expectations, initiative, and self-confidence, among others, are consistently identified by researchers as part of the skills profile needed for success in another culture. Building on this research, the recent work of Vulpe and colleagues has succeeded in establishing a very detailed description of the actual behavior of interculturally effective people. The profile of skills and knowledge identifies nine major competency areas for a person to be acknowledged as being interculturally competent. The nine competency areas are: Adaptation skills; Adaptation skills; An attitude of modesty and respect; An attitude of modesty and respect; An understanding of the concept of culture; An understanding of the concept of culture; Knowledge of the host country and culture; Knowledge of the host country and culture; Relationship-building; Relationship-building; Self-knowledge; Self-knowledge; Intercultural communication; Intercultural communication; Organizational skills; Organizational skills; Personal and professional commitment. For each competency area, a detailed description of behavioral indicators is provided. These are the observable, concrete actions displayed by interculturally competent individuals. Accordingly, we do know a great deal about what it takes to be effective in another culture, at least in terms of the personal skills and traits associated with intercultural success. The Role and Impact of Intercultural Training Although studies attempting to evaluate the impact of intercultural training remain inadequate for “proving” its effectiveness in equipping people with intercultural skills, the need to prepare and assist people in being able to live and work effectively in another culture is clear. Evidence abounds with respect to the multiplicity and variety of problems which people encounter on entering a new culture. Many types of intercultural training, from the very didactic to the very experiential, have been tried over the years. The recent emphasis in cross-cultural training, and in the field of training more generally, has been to identify the behavioral competencies needed for success and to then design training programs aimed at acquiring these skills. This new behavior-based approach to intercultural training provides trainees with the opportunity to learn about and actually practice interacting with people from different cultures. One of the benefits of this approach is that it makes it easier to measure skills acquisition and thus may permit a more scientific evaluation of the effectiveness of intercultural training programs. Monitoring and Support Anyone who has had responsibility for recruiting and managing expatriate personnel will readily speak to the importance of monitoring performance and providing support to employees and staff posted abroad. Too often people are sent into other cultures and left to fend for themselves. Failure rates measured by early return are estimated from 15% to 40% for American business personnel; of those who stay, less than 50% perform adequately. Often the reason for early return has to do with family adjustment problems. In a study of Canadian technical advisors posted to Egypt, over 90%, including spouses, identified the need for in-country support services (such as on-arrival orientation, seminars, and counseling) to help them adapt and be effective while living and working in Egypt. Debriefing and Re-Entry Although research on expatriates has found that re-entry culture shock is often more severe than the culture shock experienced in adapting to the foreign culture, few international agencies or companies offer their employees any systematic debriefing/re-entry program on return. The opportunity to learn from the employee’s intercultural experience is lost and the need to assist employees and families to re-adapt to the home culture is ignored. Returning personnel often express frustration because they feel their international experience is not exploited by their employer and the difficulty of their re-entry on themselves and their families is unacknowledged. This is often cited as one of the reasons why many returning expatriates actually resign from the companies which sent them to work internationally. The Role of Motivation, Attitudes, and Expectations Most researchers would agree with the view that one’s motivation, attitudes, and expectations are critical determinants of whether or not a person will adapt and perform effectively in a new culture. A strong professional commitment and a desire and energy to contribute to improving conditions in the host country has repeatedly been found to be associated with success in another culture. Additionally, having positive attitudes and a spirit of adventure are also predictive of personal contentment and professional success in a new culture. Ambivalence about whether or not to undertake the foreign posting or excessive fear or concern about the future are negative indicators with respect to overseas adaptation. And, finally, possessing a set of realistic expectations prior to departure has often been found to be associated with international success as it guards against becoming disappointed or even disillusioned with the process of adapting to a new culture. On this latter point, however, it is interesting to note that Kealey’s research adds an important addendum to these general findings. For example, he found an order or priority with respect to positive attitudes and realistic expectations. Although he confirmed the importance of both, positive attitudes were found to be more important than realistic expectations in predicting success in another culture. It seemed that those possessing very positive attitudes prior to departure were simply confident and determined to make the posting work. Once in the new culture, even if they were disappointed or disillusioned due to not being adequately realistic about the conditions that awaited them in the new country, they did not let their disappointment or surprise prevent them from becoming content and effective in the new culture. The Experience of Spouses Most of the research on spouses involves the study of women who accompany their husbands and children on the overseas assignment. Although it is becoming more common to find men who are the accompanying spouse, very little research has been conducted on their experiences. Kealey’s data on spouses identifies three key problems which confront spouses. First, in comparison with their husbands, they undergo a greater degree of stress and difficulty in adjusting to the new culture. It is their responsibility to get the house in order as their husbands go off to the office. The tasks of settling in (e.g., housing, unpacking, shopping), dealing with children’s adaptation problems, establishing relationships with domestic staff, loss of privacy, and adjusting to the expatriate community are often simply overwhelming. Second, spouses report feeling isolated and dependent. They miss their family and friends back home and often come to resent their financial and emotional dependence on their husbands as they try to establish a life for themselves in the new environment. Third, many spouses report difficulty and even anger at having had to put their own career on hold in order to support the career of their husband. The research of Kealey and others serves to illustrate the critical importance of the situation of the spouse overseas. Put simply, the capacity of the accompanying spouse to adjust to the foreign environment is at least equally important, if not more important, as the capacity for adjustment of the working spouse. With respect to the characteristics of successful spouses, Kealey identifies three key factors: initiative, an interest in culture, and a willingness to put their own career on hold. The spouses who cope best in a new culture see the posting as an opportunity to explore, learn, and develop themselves. They have come to terms with interrupting their own career and see the posting as an adventure and a break from their own job responsibilities. For spouses who do not cope well, it is most often the case that they fundamentally did not want to go overseas but felt they had no choice but to support the career opportunity of their partner. Relevance of Research Findings for International Diplomats Although the foregoing discussion of research findings on expatriate intercultural competence derives primarily from the study of international development workers, foreign students, and international business people, many of the findings also likely hold true for foreign service personnel. Unfortunately, very little research has focused on the personal adjustment and professional effectiveness of individuals and families in the diplomatic service. It may be that the traditional role of the diplomat as representing the interests of his/her own country has justified a certain distance from local culture and, therefore, less need to be interculturally competent. However, increasing evidence shows that the role of the diplomat is changing. Joseph Nye and others argue that traditional self-interested diplomacy is being replaced by a diplomacy of mutuality of interests. Nye points out that the end of the cold war, economic globalization, and the technological revolution have changed diplomacy fundamentally. Accordingly, the “hard power” of military force should give way to “soft power,” such as “the capacity for effective communication and for developing and using multilateral institutions.” Although some will argue with this position, especially given current world events, it seems that the role of the diplomat is indeed changing and becoming more demanding in terms of the personal qualities and skills needed for success. For example, an American observer has suggested that the role of his country’s diplomats will evolve toward being “networkers,” who link up home and host country businesses, NGOs, and other organizations for mutual advantage. More recently, Glen Fisher, after spending more than 20 years in the foreign service, concluded that his profession ignored and continues to remain ignorant of what he terms the “psychocultural dimension of international affairs.” He argues that diplomats and others involved in international projects need new skills to be effective in their jobs. Just learning facts and the language of another culture is insufficient for effective cross-cultural collaboration. International personnel need to be interculturally competent, able to communicate, empathize with, and understand the “mindsets” of local colleagues. It is his opinion that international operations have indeed developed greater technical “know-how” and efficiency, but continue to ignore the need to train their people in understanding and managing the psychocultural dimensions of their business. Without focusing on the issue of intercultural competence per se, other writers and researchers in the field of international affairs plead for a new direction. Helena Finn argues that more than military force is needed to fight foreign extremism. She makes the point “that dialogue is essential to winning the hearts and minds of moderate elements in societies vulnerable to radicalism.” Interestingly, Robert McNamara had already alerted the international community to this point in his retrospective on Vietnam. But McNamara went further, to deplore his nation’s continued ignorance of other cultures: “Our judgments of friend and foe alike reflected our profound ignorance of the history, culture, and politics of the people in the area, and the personalities and habits of their leaders.” Finally, in an interesting article, Samuel Huntington issues a wake-up call for the West as he feels many are mistakenly convinced that modernization equals Westernization equals an eventual single, global culture. He argues very convincingly that the widespread acceptance of American food, music, and consumer goods does not at all mean that other nations are forsaking their own ways: “Drinking Coca-Cola does not make Russians think like Americans any more than eating sushi makes Americans think like Japanese.” Clearly, the DiploFoundation has increasingly acknowledged the changing nature of international diplomacy and is working to bring new knowledge and awareness of intercultural and other skills needed to perform effectively in the role of diplomat. It is hoped that the foregoing presentation of research findings can serve to inform current and future planning for the selection, training, and evaluation of international diplomats. This research has enabled us to better understand the personal and professional challenges in working across cultures, identified the interpersonal and intercultural knowledge and skills needed to be successful, and enabled a number of international organizations to improve their management of international operations. More specifically, the research findings led the Centre for Intercultural Learning of the Canadian Foreign Service Institute to conduct further research related to intercultural competence with a view to redesigning its programs in support of international selection, training, and performance evaluation. We now turn to a discussion of A Profile of an Interculturally Effective Person, a project which enabled the Centre to redesign its intercultural programs and services. The paper will conclude with a description of the new programs and services being developed to address the need for foreign service personnel to become more interculturally competent. Profile of an Interculturally Effective Person Prior to undertaking the exercise described here, the Centre for Intercultural Training had considered a plan to evaluate the impact of pre-departure intercultural effectiveness training on expatriate performance in the field. This study was put off, because it was felt that a clear and measurable statement of the performance expected of an interculturally effective person did not yet exist. What is it that a person does or does not do, says or does not say, that would indicate to an observer that he or she is, in fact, interculturally effective? In other words, a proper evaluation required an elucidation of the behavioral indicators of intercultural effectiveness. This thinking, and a review of other sources such as Kirkpatrick and Mager, led us to the development of a framework for selection and training design and evaluation, which we called a profile of the interculturally effective person. This new profile presents an integrated hierarchy of the skills, knowledge, and attitudes expected of an interculturally effective person working in a foreign culture. It covers three levels of skills and knowledge, which we called major competency areas, core competencies, and behavioral indicators. At the most general level are nine major competency areas, or the most essential qualities required of an interculturally effective person. Although a knowledge of these nine major areas is useful to organize a multitude of competencies and behavioral indicators, and to quickly assess areas of priority attention when selecting individuals for overseas assignment or for designing training programs, their use for evaluation purposes is minimal. The second level gets more specific and measurable. Some 30 core competencies flesh out and begin to defuzzify the aforementioned major competency areas. These core competencies serve as precise learning objectives in the design of training programs and are used as such by trainers. But they are still not precise and observable enough for evaluation purposes. Therefore, our ultimate level of specificity lies at the third level, that of behavioral indicators. These indicators are conceived as behaviorally defined and observable, and hence provide evaluable statements of what an interculturally effective person would actually do and say in real life. Table 1 provides a visual presentation of a part of the intercultural effectiveness profile. Due to space constraints, the complete sequence is given for only one of the major competency areas and its related core competencies and behavioral indicators. Table 1: An Example of CIL’s Profile of an Interculturally Effective Person (IEP) The IEP Profile in Use The development of the competencies and indicators in our profile of an interculturally effective person has provided a common language and set of reference points or benchmarks for consistent use throughout our selection, training design, and evaluation processes. We have now developed a series of tools and procedures for the screening and selection of international personnel. This system, called the International Personnel Assessment (IPA) Program, assesses an individual’s overall readiness and capacity to perform effectively in another culture. These instruments are designed to assist organizations in identifying the best candidates to undertake an overseas assignment. Results of the IPA program are also useful for identifying the knowledge and skills that need to be upgraded in order to perform effectively on an international assignment. With regard to training design, our flagship intercultural course, a three-day pre-departure course designed for professionals and their spouses undertaking an international assignment, has been revamped by using the competencies and indicators in the profile as baseline measures and constructs for conducting assessments of learning needs and articulating the baseline learning objectives. In other words, the profile provides the performance standards against which an individual trainee’s current level of intercultural skills can be assessed prior to training. Identifying the gap between actual and needed skills permits a large degree of customization. We also give a copy of the profile to all course participants as a reference for helping them to align their behaviors with the learning objectives. The Centre has also taken the comprehensiveness, precision, and behavioral observability of the competencies and indicators to construct and implement evaluation frameworks with which one can assess not only the learning that takes place in our courses but also the extent to which this learning transfers to effective intercultural performance in an overseas assignment. Finally, the profile has proven a valuable marketing and client relations tool, permitting our potential and new clients to grasp more clearly the tangible benefits that they can expect from our intercultural learning products and services.
2004-08-19T00:00:00
2004/08/19
https://www.diplomacy.edu/resource/intercultural-competence-and-its-relevance-for-international-diplomacy/
[ { "date": "2024/08/28", "position": 13, "query": "geopolitics diplomacy employment rate" }, { "date": "2024/08/28", "position": 8, "query": "geopolitics diplomacy worker rights" } ]
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America's Newest Export: White-Collar Jobs - SHRM
America's Newest Export: White-Collar Jobs
https://www.shrm.org
[ "Pamela Babcock" ]
The debate over offshoring white-collar jobs is red hot. Dissecting the rhetoric and grounding the predictions will help HR plan for future workforce needs.
Demonstrate your ability to apply HR principles to real-life situations. Attend a SHRM state event to network with other HR professionals and learn more about the future of work. Stand out from among your HR peers with the skills obtained from a SHRM Seminar.
2004-04-01T00:00:00
https://www.shrm.org/topics-tools/news/hr-magazine/americas-newest-export-white-collar-jobs
[ { "date": "2004/04/01", "position": 14, "query": "geopolitics diplomacy white collar workers" }, { "date": "2004/04/01", "position": 16, "query": "geopolitics diplomacy white collar workers" }, { "date": "2004/04/01", "position": 16, "query": "geopolitics diplomacy white collar workers" }, { "date": "2004/04/01", "position": 15, "query": "geopolitics diplomacy white collar workers" } ]
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Blue collar blues - CommonWealth Beacon
Blue collar blues
https://commonwealthbeacon.org
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The decline of manufacturing jobs has become a big issue nationally. Between 1999 and 2003, during the recent recession and tepid recovery since ...
Economist Paul Harrington has lots of data about manufacturing employment in Massachusetts, and all of it is ugly. In 1984, about 670,000 people were employed in making things, or about one in every four non-agricultural workers; just a decade later, manufacturing was down to 447,000 employees, or about 16 percent of the state’s private sector workforce. That was far from the end of the slide. Last fall, manufacturing accounted for just 331,000 of Massachusetts’s 3.2 million private sector jobs. In just two decades, manufacturing’s share of total employment in Massachusetts fell from 25 percent to barely 10 percent. But Harrington, co-director of Northeastern University’s Center for Labor Market Studies, says there’s another way to capture the reality of these vanishing blue-collar jobs–with a colloquialism that’s vanishing as well. WORCESTER TELEGRAM & GAZETTE Worcester’s Wyman-Gordon Co. was still at full power in 1982. “Do you remember when someone used to go work for some big, established company around here?” Harrington asks. “You’d say, he’s at General Motors or Polaroid or whatever–he’s set for life. You just don’t hear that expression any more.” Set for life. It’s a phrase the workers profiled below would find familiar, if poignant. Kevin Casella figured he was set for life when he went to work at Wyman-Gordon Co., in Worcester, as a high school graduate and community college dropout in 1985. He never thought that, at 46, he’d be a laid-off father of two. And Karl Farmer thought that the social compact that had long marked Cambridge-based Polaroid’s relationship with its employees was something he could count on forever. Those were expectations of a different era. It was an era that promised not only security but also opportunity for society’s have-nots–those who had a dream they were willing to work for. For more than a century, manufacturing was the first rung on a ladder to the middle class for wave after wave of immigrants and for countless Bay State residents who did not or could not attend college. “In manufacturing, you had this upward mobility based on skills acquired on the job,” Harrington explains. “Even without formal schooling, you could work your way up the mobility ladder. Now that ladder has broken down and doesn’t work anymore.” Manufacturing still provides a haven for immigrants, Harrington says, but for fewer of them. High school dropouts, for whom factories long served as an economic and social lifeline, have caught particularly bad colds from manufacturing’s big sneeze. “Access to full-time jobs for high school dropouts is way below what it was in the past,” says Harrington. “Even when they do find full-time work, real earnings today are about two-thirds of what they were 30 years ago.” The consequences, he says, go well beyond a shrinking paycheck: “The loss of manufacturing undermines basic family structure and community.” The decline of manufacturing jobs has become a big issue nationally. Between 1999 and 2003, during the recent recession and tepid recovery since, 2.8 million manufacturing jobs disappeared, devastating the industrial Midwest. But in Massachusetts, the drain of manufacturing jobs is an old story, one that attracts little attention today. “If one company were closing with the sudden loss of thousands of jobs, then we’d maybe see big headlines,” says Massachusetts AFL-CIO treasurer Kathleen Casavant. “But it’s been a slow bleed over many years to the point that people don’t even know about some of these companies until they start closing.” Example: Last October, Main Street Textiles, in Fall River, closed, with the loss of 400 jobs, but the event merited just a one-paragraph squib in The Boston Globe. The slightest hiccup in biotech gets more ink than that. And it’s not just the media that have lost interest. “Unfortunately, too many policy-makers see manufacturing as a thing of the past in Massachusetts,” says Richard Lord, president of Associated Industries of Massachusetts. “AIM is trying to change the stereotype that the New Economy isn’t going to contain manufacturing jobs. It has to include manufacturing, and for a lot of reasons. The most basic is that manufacturing creates wealth. Losing our manufacturing base will have a profoundly negative impact on our economy.” For now, however, the negative impact seems confined to people like those you’ll meet here, people who saw themselves once as the source of a nation’s wealth–as well as their families’ breadwinners–but now as society’s castoffs. The economy will adjust, providing opportunities for the next generation that the factory hands of yesterday–or those remaining today–would find difficult to imagine. But for individuals who knew a different era, and who bought into a social contract that is no longer being honored, change comes hard. “Blue-collar guys without a lot of skills were never going to be rich. We knew we’d have to work until 62 or so. And we always understood that,” says Paul Soucy, president of United Steelworkers Local 2285, who put in 25 years at Wyman-Gordon. His father and his uncles racked up more than 40 years apiece at the company; his brother is working there still. “What I don’t understand is why people don’t get what’s happening to us now,” he says. “We’re Middle America. We’re what makes America go. We’re the ones buying the cars, keeping the local stores afloat, trying to put our kids through college and provide for our families. We’re the core of America. And it boggles my mind that we’re under attack.” Kevin Casella: “Wyman’s was it” Attack might not be the right word, even if that’s what it feels like to Soucy and other factory workers. But there’s no doubt that the world of factory work has almost disappeared in Massachusetts, and it’s on the way out elsewhere. Kevin Casella: “Good pay, good benefits. You assumed you were set for life.” Kevin Casella, 46, has watched–and lived–the change. Back when work was steady, Casella could spot his fellow workers in blue-collar bars around Worcester even if he had never met them. “You could always tell the guys from Wyman’s,” he says. “They were the ones with cash.” Casella was one of those guys from Wyman’s, as the 120-year-old Wyman-Gordon Co. was known to generations of workers who produced the firm’s complex metal components and other products for aircraft engines, energy turbines, and other heavy equipment. “If you grew up around here, Wyman’s was it,” says Casella, who was raised in Grafton. “I went to community college for a couple of years but never finished. You didn’t really need to. There were a lot of places to get good work, but Wyman’s was it. Good pay, good benefits. You worked at Wyman’s, you assumed you were set for life.” Founded in Worcester in 1883, Wyman-Gordon had a customer base of defense, energy, aircraft, and other clients that would seem to immunize it from the rise and fall of the business cycle. Or so Casella thought. After working in construction and other jobs, Casella started at Wyman-Gordon in 1985 as a chip puller in the machine shop at the Worcester plant. Part of that plant has since been closed. Gone, too, is the local ownership. In 1999, the company was acquired by Oregon-based Precision Castparts Corp. After less than a year on the job, Casella faced the first of a string of layoffs that came and went with contracts, recessions, and market cycles. They didn’t discourage him. “With every layoff, I always thought I’d be back,” says Casella. And a layoff didn’t always mean being out of work, he says. “It used to be that you’d get laid off, you could go across the street and find work. It maybe wouldn’t pay as much as Wyman’s, but it was a paycheck until you got back. Now it’s different. The places across the street aren’t there anymore. You have to go to Malaysia or China.” Indeed, Casella did go back, a few months after his first layoff, shifting to the company’s Grafton plant. There he was a millwright, helping to maintain the plant’s complex machinery. “In Worcester, I’d heard that you don’t get laid off in the Big House–that’s one of my names for Grafton,” says Casella. “But I did.” His longest layoff, in 1993, lasted eight months. Casella, who married in 1989 and has a daughter who is now 12 and a son who is 9, has tried other jobs. He sold copy machines for a while, but it was not for him. Wages, habit, and colleagues kept drawing him back to Wyman-Gordon. “It was dirty, loud, hard, and heavy, but you took pride in making products that were going to help your country.” Helping the country took Wyman-Gordon only so far. The company was hit hard by defense cutbacks in the early 1990s. It rebounded with commercial air sales, but then they plummeted too. Lately, the company has suffered by its choice of customers: One major energy-related contract, for example, fell victim to the collapse of Enron. Manufacturers cite high labor costs and union work rules as factors in their inability to compete with overseas operations. Casella, who served on Steelworkers Local 2285’s executive board for six years and was a Wyman-Gordon shop steward for eight, knows that. “People say we were overpaid crybabies, but I sometimes think it’s because they were jealous that we made more. They don’t realize that we set the standard that brings up everybody’s wages. But at the same time, I can see the company’s point. I’m a union man, but the fact is that if there’s no company, there’s no work. No mortgage payments. No toys.” Despite nearly two decades of seniority, last year Casella joined the rank of unemployed manufacturing workers with solid credentials and work histories but few options. “I know people who started when they were 18, and now they’re 45 and laid-off,” says Casella. “Everything they’ve ever known is at Wyman-Gordon.” He tries to keep things in perspective. “My wife and I saw this coming, and we prepared for it. We put money aside for the kids.” But Casella also feels the ground shifting under him. “I’d like to think this is just another layoff, but this one’s deep. A lot of people won’t be going back. My son says to me, ‘Dad, now you’re going to be a mailman, right?’ Then, after a while, he says, ‘Dad, when are you going to get a job?'” Casella was beginning to wonder the same thing. “You miss the pay”–about $19 an hour, down from $22– “and you miss getting up and going in every day,” he says. He got called back in late December to Wyman-Gordon’s Worcester plant. Less than two months later, he was laid off again. Now he doubts he’ll ever be called back again. “They keep laying more people off as they keep sending more work out of the country,” Casella says. “If you work at a place like Wyman-Gordon, you always took layoffs as a given. It was always peaks and valleys. The difference now is outsourcing and job elimination. This time it isn’t a cycle. This time, it’s an exit.” Karl Farmer: “Polaroid culture was family” A few years ago, Karl Farmer was sitting with a group of other Polaroid workers when he realized something that would be almost unimaginable in today’s manufacturing world. “I’d been with the company for about 28 years at that point,” says Farmer, “And I was [still] the least senior person at the table.” At that time, he didn’t feel that there was anything strange about making a life at the company Dr. Edward Land built. “That’s just how it was at Polaroid,” he says. “Management made you feel wanted, and you trusted management. It meant good production and steady operation for the company, and longevity and security for the people who worked there.” Karl Farmer: “Corporate officials priced their own company out of the market at the workers’ expense.” Farmer, 57, was raised in Roxbury, attended Boston public schools, and graduated from Northeastern University in 1970 with a degree in electrical engineering. In 1971, Polaroid was actively recruiting black engineers, and Farmer was one that Polaroid got. “But I wasn’t trying to milk the situation,” he says. “My brother was working for Polaroid as a financial representative, and he thought it would be a good place for me. The Polaroid culture really was family. Some companies frown on husband and wife working together, but at Polaroid, it was a way of life. And you wouldn’t invite your mother or daughter or brother to work for a company that didn’t treat you well.” Farmer eventually held various production, management, design, and service positions. If the image of manufacturing work–skilled or unskilled–is of rote jobs and rigid divisions of labor, Polaroid was anything but, he says. “There were so many facets to the company that you could virtually get an advanced degree without ever going to school. If you felt stagnant in your job, you could do something different without ever leaving the company. Management encouraged it. Dr. Land always tried to knock down walls.” But the picture changed at Polaroid as quickly and completely as an image on Dr. Land’s famous instant-developing film. Polaroid, which once employed 13,000 people and 9,000 as recently as early 2001, faced mounting business losses. Once an icon of innovation in Massachusetts and around the world, Polaroid filed for bankruptcy protection in October 2002. A new Polaroid–based in Waltham, not Cambridge–has emerged, but a gaping hole remains not only on Memorial Drive, but also in the psyches and pocketbooks of former employees. “In late 2001, I was told my job was going to be gone, so I had to either accept another job in the company or take a layoff into retirement,” Farmer recalls. “A job was available in Wayland, but it meant a long commute. I was going to be 55 [in January 2002], so I decided to take the layoff. Remember, we didn’t know what was going to happen. And people at Polaroid used to say that we can’t wait to go because the retirement package was so great. We owned Polaroid stock that we thought would always be worth a lot. I figured I could easily afford to retire. I’d be able to do other things, like take courses or teach golf. Then the roof fell in.” The sweet retirement offers fell off the table, replaced by vastly reduced packages. The stock fell to near zero. Farmer and other Polaroid retirees and laid-off workers have angrily challenged their treatment, with a rage stoked by the hefty salaries and golden parachutes given to former executives who led the company to bankruptcy–and also to the officers and directors of the new Polaroid formed from assets of the bankrupt entity. “The way I look at it, corporate officials priced their own company out of the market at the workers’ expense,” Farmer says. “Workers did what they could to economize, like shipping work offshore. We kept the company going, but it turns out all we did was protect huge salaries for executives who had great contracts but no accountability. “The people who have really paid are the workers at the bottom,” he continues. “A lot of corporate America thinks you can have companies of just offices and no workers. Corporate offices may bring about some projects, but they don’t add any value to a company. It’s the line worker who actually adds the widget that produces the real value.” Farmer now works as a mechanic at a golf course in Bedford. Even as an engineer, he found that his skills were a better fit for Polaroid than for today’s job market. “At Polaroid, I never became an expert in one field,” he says. “I was more a jack-of-all-trades, which was an asset to Polaroid. But today, it’s a liability. Employers can pick from all the résumés in the world right now and find the exact square peg they need for a square hole. I was kind of a gel that would fit into any hole. A company could train me for a particular task, but why should it? With so many unemployed workers out there, companies can pick a specialist out of a pool of specialists. They just don’t see the benefits of a person like me.” Maria Furtado: “All I knew was Cliftex” Even as a teenager, Maria Furtado had her future all figured out. “By the time I was 16, it was already programmed into my mind that I was going to quit school to go work in a factory,” she says. Maria Furtado: “You could just tell something was going to happen to the company.” Furtado moved from the Azores to New Bedford with her family when she was 8, following two sisters who had come over earlier. “My parents worked in the local mills,” she says. “I remember sitting in junior high school counting the years until I could go to work. Two days after my 16th birthday, I quit school and went to work. It was my first job, and I assumed it was my last job.” That’s because the job she got, 20 years ago, was at Cliftex. At the time, Cliftex employed 2,000 people making men’s suits and other clothing. Though she felt “like a little girl in a grown-up world,” Furtado says, the work fit her like a tailored suit. “The work was heavy, but it wasn’t as boring as straight sewing because I did detail work, closing the sleeves on men’s suit jackets,” says Furtado. “On good days, I’d close up to 400 coats, which is 800 sleeves. I was fast, and because my pay was based on how many pieces I did, I always made at least $100 a day. With no education, there was no other way I could have made that kind of money in New Bedford. I was able to save enough to get married and to help out my parents.” But this immigrant dream of hard work for reliable reward didn’t last. Like other textile makers, Cliftex was hit hard by market changes, imports, and stiff competitive winds. Once New Bedford’s second largest employer, Cliftex filed for bankruptcy in August 2000, and has since shut down. To the AFL-CIO’s Kathleen Casavant, who spent 17 years as a union organizer and representative for clothing and textile workers, the story is all too familiar. “There is nothing like being a union rep and walking into a plant and telling folks they’re going to close, and I’ve done it too many times,” says Casavant. “The workers are angry at the union, angry at the company. But I don’t blame Cliftex and other employers for closing their doors. It’s our trade and other public policies that are responsible. How can these companies compete with low-wage places like China?” At Cliftex, rumors of serious problems had long been in the factory air. “You could just tell something was going to happen to the company,” says Furtado, who heeded the warning signal by getting her GED in 1999. “If Cliftex closed, I wanted to at least be able to get into a training program for something else,” she says. The next year, she was laid off from the job she had assumed would last forever. She had two young children, a marriage (to a fisherman) that was ending, and little education. The skill she did have–stitching men’s suit coats–was no longer worth $100 a day to anyone. The day after getting her layoff notice, Furtado dropped her two daughters off at school and headed for the stone wall that separates New Bedford from the sea. “I just sat there and cried,” she recalls. “I was totally depressed. What was I going to do? All I knew was Cliftex. I didn’t even have a side job. All I knew was sitting at a machine and sewing. It was so scary.” Then came a call from her union, UNITE Local 377, about a meeting with the state’s Rapid Response Team, which offers information about training programs and other services for workers who have been or are about to lose their jobs. “That’s where my GED began to pay off,” says Furtado. “I learned about openings in health care and went back to school.” Even with some help and some direction, making the transition to a new job in a new industry was not easy, she says. “I had to take care of my kids while enrolled in a training program fulltime for nine months and making just $250 week in unemployment insurance.” Making the transition from factory to health care was difficult in other ways, says Furtado. “A job counselor said I could become a medical assistant in phlebotomy. I said, what’s that? Drawing blood, she said. I didn’t think I could do that.” But she finished the training program, then went to work in a medical office in Wareham. A few months later, Furtado became a medical assistant at the New Bedford Health Center, then a laboratory assistant. Her goal now is to become a registered nurse. Furtado is still earning less than she did at Cliftex, but at least it’s not piecework. And a part of her still doesn’t believe the change she’s made in her working life. “At times, I just stop at the job I have now and ask myself if I’m really doing this,” says Furtado, who is also taking courses toward a bachelor’s degree at Bristol Community College. “I was so used to stitching work, and now I’m doing something I’d only seen other people do in a doctor’s office. If you told me four years ago I’d be doing this, I’d say you were crazy.” Manufacturing will never regain its dominant position on the Massachusetts industrial landscape. No one appreciates that reality more than those who have seen the notion of “set for life” lost to harsher phrases such as permanent layoff, outsourcing, and foreign competition. People who once prospered with manufacturing are trying to make sure the hard lessons they learned are not lost on their own children. “If one of my kids wanted to go to school to become a machinist, I’d say that that may not be the right choice today,” says Kevin Casella. “You want to help your kids get a job in a vocation that’s going to last. And you have to make sure they are adaptable to the changes they’re going to face.” If they do follow in his blue-collar footsteps, they should plan on a volatile working life, he says. “It would be OK with me if my kids went to work for Wyman-Gordon or a company like that if that’s what they wanted to do. You can make a decent wage and can take pride in the fact that you’re helping supply industry with the parts that help make this country run. But I’d also tell my kids that they’d better be prepared to move on to a different company and to different kinds of work.” Maria Furtado offers similar advice to her two daughters. “I’m telling them how important it is to go to college, to get an education. It’s true that people even my age were once able to do OK financially without going to college. People were able to make it to the middle class without a lot of education, and they were able to afford their kids a better future that was not in the factory. But today, I tell my children that you can’t do that. There are no factories around here any more.” Though she still earns less in the medical field than she did at Cliftex, Furtado thinks her children are learning something from her own experience. “My daughter is proud that I got out of the factory, that I’m doing something that is not factory-related. In a way, it was good for me that Cliftex closed down because another door opened to a field in which I’m very happy.” Karl Farmer’s three children have all found work that is far from Farmer’s life of making things. One works in criminal justice, another advocates for mentally challenged adults, and the third is a phone company service representative. They’re all doing well. But Farmer worries about people trading on their specialties in the open market, rather than signing on with a company and doing what’s needed to make it a success. “The kind of engineering work I did at Polaroid–being a jack-of-all-trades–is a thing of the past,” says Farmer. “I got a lot of satisfaction out of being able to do different things, to think about how to solve different problems. That’s all gone now. Today, it’s specialize in this and specialize in that. In the long run, I think that’s bad for industry. But I don’t think industry cares.” Phil Primack, a Medford-based freelancer, writes about economic development and other public policy issues.
2004-04-01T00:00:00
2004/04/01
https://commonwealthbeacon.org/economy/blue-collar-blues/
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Globalization of IT Services and White Collar Jobs: The Next
Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth
https://ideas.repec.org
[ "Catherine L. Mann", "Peterson Institute For International Economics", "Author", "Listed" ]
... transformation are investment in the information technology (IT) package (hardware, software, and business-service applications) and reorientation of ...
Businesses throughout the US economy continue to transform even after the technology boom has faded. The key sources of this continuing transformation are investment in the information technology (IT) package (hardware, software, and business-service applications) and reorientation of business activities and processes to use both information and technology effectively. These are the items that most often cite the same works as this one and are cited by the same works as this one. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iie:pbrief:pb03-11. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peterson Institute webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/iieeeus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
2003-12-06T00:00:00
2003/12/06
https://ideas.repec.org/p/iie/pbrief/pb03-11.html
[ { "date": "2023/07/01", "position": 79, "query": "digital transformation white collar workers" }, { "date": "2024/01/01", "position": 74, "query": "digital transformation white collar workers" }, { "date": "2024/04/01", "position": 81, "query": "digital transformation white collar workers" }, { "date": "2024/07/01", "position": 79, "query": "digital transformation white collar workers" }, { "date": "2024/10/01", "position": 81, "query": "digital transformation white collar workers" }, { "date": "2025/01/01", "position": 81, "query": "digital transformation white collar workers" }, { "date": "2025/04/01", "position": 79, "query": "digital transformation white collar workers" } ]
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The Geopolitics of Currencies and the Future of the International ...
The Geopolitics of Currencies and the Future of the International System
https://escholarship.org
[ "Cohen", "Benjamin J." ]
with both unquestioned political stability and an enviably low rate of inflation, backed by a joint monetary authority, the European Central Bank, that is ...
Geopolitics, the dictionary tells us, is about international great-power rivalries – the struggle for dominance among territorially defined states. Conflict is at the heart of geopolitics. Geopolitical relations are dynamic, strategic, and hierarchical. In geopolitics, the meek definitely do not inherit the earth. Today, much the same can be said about currencies, which in recent years have become increasingly competitive on a global scale. Monetary relations, too, have become conflictual and hierarchical; and the meek are similarly disadvantaged. At issue is a breakdown of the neat territorial monopolies that national governments have historically claimed in the management of money, a market-driven process that elsewhere I have described as the deterritorialization of money (Cohen 1998, 2003a). In lieu of monopoly, what we have now is more like oligopoly – a finite number of autonomous suppliers, national governments, all vying ceaselessly to shape and manage demand for their respective currencies. Since state are no longer able to exercise supreme control over the circulation and use of money within their own frontiers, they must instead do what they can to preserve or promote market share. As a result, the population of the monetary universe is becoming ever more stratified, assuming the appearance of a vast Currency Pyramid -- narrow at the top, where the strongest monies dominate; and increasingly broad below, reflecting varying degrees of competitive inferiority.
2003-11-07T00:00:00
2003/11/07
https://escholarship.org/uc/item/5pc0p3rc
[ { "date": "2023/01/01", "position": 76, "query": "geopolitics diplomacy inflation rate" }, { "date": "2023/04/01", "position": 74, "query": "geopolitics diplomacy inflation rate" }, { "date": "2023/07/01", "position": 75, "query": "geopolitics diplomacy inflation rate" } ]
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Study: A Union Label More Often on a White Collar | PLANSPONSOR
Study: A Union Label More Often on a White Collar
https://www.plansponsor.com
[ "Fred Schneyer" ]
According to a September report by the AFL-CIO's Department for Professional Employees (DPE), almost a third of new union members are ...
According to a September report by the AFL-CIO’s Department for Professional Employees (DPE), almost a third of new union members are professional, white-collar workers, according to a report in HR Management. The study, Rising Tide-Professionals: The New Face of America’s Unions, published by the AFL-CIO’s Department for Professional Employees (DPE), said almost 66,000 white collar workers voted to join an AFL-CIO-affiliated union in 2002, making it the fastest growing occupational group within the federation. The result is that nearly half of the current AFL-CIO membership is white collar – larger than any other occupational group. Other union findings include:
2003-10-20T00:00:00
https://www.plansponsor.com/study-a-union-label-more-often-on-a-white-collar/
[ { "date": "2003/10/20", "position": 68, "query": "worker organization labor unions white collar workers" } ]
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Employers' Benefits from Workers' Health Insurance - PMC
Employers' Benefits from Workers' Health Insurance
https://pmc.ncbi.nlm.nih.gov
[ "Ellen O'Brien", "Georgetown University" ]
The Business Case. Why do employers offer health insurance benefits to workers? The cost and tax advantages of employment-based coverage, along with workers' ...
Most nonelderly Americans receive their health insurance coverage through their workplace. Almost all large firms offer a health insurance plan, and even though they face greater barriers to providing coverage, so do the majority of very small firms. These employment-based plans cover two-thirds of nonelderly Americans and pay most of working families’ expenses for health care and about one-quarter of national health spending. Despite employers’ role in the health insurance market, however, very little attention has been paid to employers’ motivations for providing health insurance to workers. Why do employers offer health insurance to workers? Is it because workers want it? Because their unions demand it? Or do employers offer health benefits to workers because their productivity and profitability depend on it? The standard economic theory of the availability of employer-provided health insurance focuses on worker demand (Cutler 1997; Pauly 1997; Summers 1989). According to that theory, employers are willing to arrange health insurance plans for workers because workers are willing to “buy” that health insurance through wages reduced by the amount of the cost of the insurance. The theory states that rather than receiving additional cash compensation and finding and purchasing health insurance on their own, workers prefer to obtain coverage through their employers and so accept a wage offset to cover the cost of that coverage. This theory has a number of problems, though, not the least of which is that the data provide very little support for it. Despite decades of effort to demonstrate its validity, the empirical basis for the theory of compensating differentials remains surprisingly weak. Many empirical studies suggest that workers covered by employment-based health insurance plans earn more, not less, than do workers without health benefits (Buchmueller and Lettau 1997; Levy and Feldman 2001; Monheit et al. 1985; Simon 2001). But rather than reassess the theory, economists have focused on why the empirical research fails to produce the expected result. This article makes a case for reassessing the theory. A key flaw in the standard theory is that it ignores the benefits accruing to employers from offering health benefits. According to the conventional view, employees pay the full cost of coverage presumably because they believe that the benefits of health coverage are entirely for themselves. The alternative view that I am investigating posits a “business case” for employment-based health coverage, acknowledging that employers may want to offer coverage because offering a compensation package composed of both wages and health insurance is more profitable than providing wages alone. Employers might benefit from providing health insurance, for example, if it allowed them to recruit and retain high-quality workers. Perhaps employees who demand health benefits have other qualities that employers value; they might be forward-looking or less mobile (e.g., workers with children). Thus by offering health insurance, the firm could attract employees who anticipate establishing a long-term employment relationship. Firms might also provide health insurance if health insurance improves workers’ health, by increasing their productivity at work and reducing absenteeism and turnover. Moreover, workers in “good jobs” are happier and more productive. Rather than having only some workers insured or having wide variation in the extent and quality of coverage—as would likely happen if workers were left on their own to purchase insurance—employers could benefit from having all or most of their employees covered under plans with standard minimum benefits. This “business case” merits a passing mention in some discussions of the availability of employment-based health benefits (see Currie and Madrian 1999, 3368; Wolaver, McBride, and Wolfe 1997), but it is not central to the standard theory, and economists have typically minimized its importance. In a discussion of the impact of a government mandate, for example, economist Mark Pauly ruled out any real benefits to the employer. Employer-provided health benefits, he argued, “will have little effect on the employer's bottom-line. Workers may be a little bit healthier and a little happier … and that will presumably benefit employers a little. But the main consequences, positive or negative, of increasing workers’ insurance coverage will fall on the workers themselves” (Pauly 1997, 84). In a recent paper in which he reviewed existing empirical evidence, economist Thomas Buchmueller also found that employers reap few or no “spillover benefits” from providing health insurance to workers. Academic studies, he concluded, show little evidence that health insurance improves workers’ health and productivity, reduces turnover, or substantially cuts employers’ costs associated with workers’ compensation and absenteeism (Buchmueller 2000). Despite the short shrift afforded the business case in mainstream economics, it seems worthwhile to reassess it. Although Buchmueller's review may seem to settle the matter, he neglected to discuss a number of recent studies analyzing the productivity effects of poor health. But perhaps a more compelling reason for a reassessment is that many employers seem to think health and health coverage affect workers’ productivity and organizational performance. A burgeoning “health and productivity management” literature argues that the value of health coverage far exceeds its direct cost to employers. Even if employers have only recently begun to appreciate the value of health coverage for employee and firm performance, as some experts suggest (e.g., Ceniceros 2000), it would be helpful to document and understand that shift in perceptions. Changes in the business community's perceptions of the value of secondary education in the early 20th century offer a useful comparison. As economic historian Claudia Goldin explained, at the turn of the century, education at the secondary and higher level was viewed as providing “‘private,’” not public, goods: “unlike the elementary schools, which taught basic skills thought to be essential to a democracy and needed to coordinate commercial activity, high schools were often depicted as producing skills accruing entirely to the individual” (Goldin 2001, 19–20; italics added). By the early 20th century, though, people and training, not capital and technology, had become the new concerns. Capital embodied in people—human capital—mattered. The result of this shift in perceptions, according to Goldin, was that for the first time “the post-literacy schooling of the masses was perceived to greatly economic production” (Goldin 2001, 1). The growing sense in the American business community that secondary education mattered to them helped spur investments in education. Like education, health is a key component of human capital (Becker 1964; Fuchs 1966; Grossman 1972). Education and skills, after all, are embedded in people, whose productivity depends on their health. It thus seems reasonable to suspect that at the turn of the 21st century, employers may have concluded that health insurance coverage and other investments in their employees’ health are important to productivity and organizational performance—and more now than in the past because of advances in medical care and its rising cost. Indeed, employers are said to be concerned with the return on investments in employer-provided on-the-job training, for which U.S. employers budgeted an estimated $58.6 billion in 1997 (Bartel 2000, 502). It thus seems incongruous that employers would see no potential for returns on investments in health, on which more than $335 billion was spent in 2000 (Cowan et al. 2002). Furthermore, even if empirical progress has been slow to date, it bears keeping in mind that economists have frequently struggled to demonstrate the empirical importance of certain propositions because the principal concern is notoriously difficult to measure. In a revealing comment in a lengthy survey article on health, health insurance, and the labor market, economists Janet Currie and Brigitte Madrian observed that “academic research has only recently substantiated that health is a consequential determinant of labor market outcomes. Economic agents, however, have long recognized the importance of this relationship” (Currie and Madrian 1999, 3363). Their comment is noteworthy because it acknowledges that it took economists a very long time to quantify a phenomenon that seems intuitive to noneconomists (i.e., that health affects individual economic performance). The question I am raising is whether economists should make a greater effort to assess the relationship between health coverage and firms’ outcomes. The Business Case Why do employers offer health insurance benefits to workers? The cost and tax advantages of employment-based coverage, along with workers’ willingness to pay at least part of the cost, may be the primary factors. To better understand the reasons for the availability of employment-based coverage, however, it is necessary to look at the value of health insurance coverage not just to employees but to employers as well. Why Do Workers Want Employment-Based Coverage? Workers want health insurance for themselves and their families in order to protect against the catastrophic costs of serious illnesses and to ensure access to medical care. For those without the time or income to save for it, insurance may be the only way to obtain medical care that would otherwise be unaffordable (Nyman 1999). Although it is possible for individuals to purchase insurance on their own, the high cost of private individual coverage, barriers to access to that coverage, and steep transactions costs help account for the value of group coverage to workers and thus explain why, in the absence of any viable alternative, workers demand coverage through their employers. Employment-based coverage is far less expensive than individually purchased coverage, for several reasons. First, through “pooling,” employers can reduce adverse selection and administrative expenses. These cost advantages are significant, especially for large firms. Moreover, employers are able to offer relatively inexpensive health insurance because most people covered by employment-based plans are in good health. Those people who are most expensive to insure—the elderly and people with serious disabilities and chronic conditions—are typically covered by public programs such as Medicare and Medicaid, thereby reducing the cost of employment-based insurance (Davis 2001). Second, under federal law, employment-based insurance receives special tax treatment. Although employees pay income tax on their wage earnings, the portion used for health insurance is not taxed as income, and payroll taxes do not include the amount paid for these benefits. And if their employers arrange for it, employees can also pay their share of the insurance premium out of pretax income. Indeed, the tax advantages for employment-based coverage are significant. According to one estimate, the tax exclusion reduces the “price” of employment-based health insurance by an average of 27 percent (Gruber and Poterba 1996, cited in Currie and Madrian 1999, 3366). By contrast, individuals buying insurance on their own must pay for health insurance with aftertax dollars. They receive no tax benefit unless their spending on medical care exceeds 7.5 percent of their adjusted gross annual income, and they must itemize the deductions on their tax return. (The self-employed, however, may deduct a portion of the amount paid for health insurance premiums—60 percent in 2000—when determining their taxable income.) Third, the transactions costs of buying an individual insurance policy are high for both individual workers and their families. Even when workers and their families are young and healthy, shopping for insurance in the individual market requires a lot of time to assess and compare different plans’ benefits. In those states where the individual market is not well regulated, premiums vary substantially by age and health status. Moreover, health insurers may exclude coverage for certain conditions, exclude coverage for some services, or deny coverage altogether for people with preexisting health conditions or who are perceived to be at high risk (Pollitz, Sorian, and Thomas 2001). By comparison, because risks are pooled in group health insurance plans, the cost to an individual does not depend on his or her particular health status. These advantages of employment-based health insurance suggest that it is worth considerably more to most workers than the additional wages that some economists say they would earn in its absence. Because there is no dollar-for-dollar trade-off—a similar product in the individual market, if available at all, would be much more expensive and impose transactions costs on workers and their families—the value to the employee of employment-based health benefits far exceeds whatever the employer is paying for it. Indeed, given the cost advantage to the employer, there is “quite a bit of leeway for employers to get the wage/benefits bundle ‘wrong’ and still leave employees better off than they would be if given only wage compensation and left to their own devices” (Currie and Madrian 1999, 3366). Do workers also regard insurance in this way? Surveys confirm that workers view employment-based health insurance as a very valuable benefit of work. Most workers report that the availability of health insurance is a key factor in their decision to take or keep a job. In one recent survey, 73 percent of workers said that the insurance provided by their employer was a “very important” factor in their decision to take or keep a job (Duchon et al. 2000). Of all the fringe benefits offered by employers, health insurance was by far the most important: 65 percent of workers in another survey ranked health insurance as the most important employee benefit, compared with 21 percent who said a retirement savings plan was the most important benefit (Salisbury and Ostuw 2000). In addition, most workers with employment-based health insurance reported that either they were satisfied with the amount of health insurance benefits they were receiving or would prefer a higher benefit (87 percent); only 10 percent said that they would prefer a higher wage (Salisbury and Ostuw 2000). In another study of what workers wanted at work, “having some say in benefits decision-making” was ranked third in importance after “influence in deciding how to do their job and organize their work,” and “deciding what training is needed.” But although workers reported that they did, in fact, have a good deal of influence on the organization of work and training, they reported having very little influence on decisions about benefits, substantially less influence than they would like (Freeman and Rogers 1999, 48–9). At the same time, other research has found that employees believe their employers are “good agents” in the market for health coverage (Peele et al. 2000). What Do Employers Gain? If workers prefer to obtain health insurance through their employers rather than on their own, why are employers willing to act as their health insurance “agents”? Part of the explanation undoubtedly rests with the tax incentives for employers to offer coverage to workers and their dependents. Payments for health insurance are deducted from gross revenues in calculating the employer's taxable income, and they also are excluded from the base payroll in determining the employer's share of the payroll tax for Medicare and Social Security. More important, however, employers may want to offer health insurance to their workers because failing to do so could harm the firm's performance. The evolution of company-sponsored medical care plans suggests that employers have long recognized the value of providing health insurance to workers. With the rapid growth of manufacturing and unions before World War I, the provision of welfare benefits, including health insurance, was widely acknowledged to be “good business”: The employee plans relieved the employer of the solicitations for aid for the destitute dependents of deceased employees; also, it was not necessary for the employees to “pass the hat” among themselves during working hours for the same purpose; the program assisted in attracting better employees and in retaining those already employed, employee morale was enhanced, job relations improved and the public relations of some firms favorably affected. (Strong 1950, cited in Munts 1967, 8) The history of early union-sponsored “sickness funds” (which offered protection against lost income and coverage for medical expenses) reveals that unions had strategic considerations in mind when they offered these funds. That is, the growth of union-sponsored funds in the 1880s was based on the notion that the union benefits would help retain workers during depressions, strikes, and wage cuts. Providing protection against illness for workers and their families was expensive, however, and in the search for the greatest appeal to workers, the discussion shifted back and forth between the need for low dues as an incentive for workers to join the union, and better benefit systems through higher dues as incentives to stay, between wage and job security on the one hand and security against the expenses of illness and death on the other. (Munts 1967, 4–5) These historical references suggest that early employer and union plans were formed in response to the needs of both the workers and the sponsoring organizations. Just as workers still need financial protection today—and undoubtedly more so because of the high cost of medical care—employers also still benefit from offering health benefits to workers. The economic value of health insurance to employers comes from a variety of sources. First, because the productivity of any firm depends on the quality of its employees, employers may provide health insurance in order to attract high-quality workers. Although many job-related factors affect the number and quality of the applicants an employer succeeds in attracting—such as the nature of the work, wages, and opportunities for promotion—health insurance may be a required component of a competitive compensation package. Simple observation suggests that health insurance is the common denominator in employer fringe benefit packages. According to the standard theory, firms offering health benefits are more likely than those not offering them to attract workers in poor health (or with sick dependents) who are more costly and less productive (Lazear 1998, 418). But this characterization may not accurately represent the attitudes of the majority of prospective employees or the choices they face. Even healthy workers are likely to value employment-based health insurance at far more than its cost. Moreover, the additional cash compensation that some economists assert would be forthcoming without health benefits may not, in fact, be provided. Second, once employers hire workers, they have a vested interest in keeping them. The costs of hiring and especially for turnover are expensive when employers have invested in training and workers have firm-specific skills. If the basic model of the wage-health insurance trade-off holds and employees value health insurance at the cost to their employers of providing it, then health insurance can be considered as just another component of the compensation package, and its effects on turnover should not be different from receiving the cash equivalent of health insurance in wage compensation. However, since group health insurance plans typically end when a worker leaves a firm (or shortly thereafter if COBRA coverage is available and the worker elects to enroll in it), turnover involves changing not only jobs but also health insurance. In addition, the loss of health insurance may leave a worker and family exposed to uninsured changes in health status. Some workers may be able obtain coverage through a new employer, but in many cases they must undergo a waiting period for coverage, and plans often exclude coverage for preexisting medical conditions (although the 1996 Health Insurance Portability and Accountability Act addressed this portability problem and protects those people in employer plans who have already served out an exclusion period for preexisting conditions from facing another such period, provided they have maintained continuous coverage). Health insurance benefits can, therefore, help keep workers in a firm, whereas dissatisfaction with health benefits may cause workers to consider other employment opportunities (Rynes and Gearhart 2000, 33–4). Employers may also have productivity or recruiting considerations in mind when deciding to provide retiree health benefits. Firms with a stable, long-term workforce may offer retiree health benefits to encourage efficient retirement patterns. Without health benefits, a firm's turnover may be too high, and without retiree benefits, workers’ decisions to delay retirement may interfere with the firm's productivity. The recent erosion in retiree benefits may mean that employers no longer believe they need to provide retiree health benefits to attract high-quality workers or encourage efficient retirements. Third, health insurance may enhance workers’ effort and productivity because of the psychosocial aspects of having a “good job.” Most workers recognize that good health coverage is necessary to ensure access to medical care and protect economic well-being. Consequently, the simple fact of its offering health insurance may increase satisfaction with a job. Conversely, the lack of insurance imposes burdens on workers and their families. For the uninsured, the financial consequences of a serious illness can quickly exhaust the additional wages provided to workers not offered employment-based health coverage. Workers who do not have to worry as much about their own illnesses or those of family members covered by health insurance may also be more productive. The economic theory of “efficiency wages” may justify an employer's decision to provide health benefits. The theory of efficiency wages suggests that employers who pay their workers more than the going market rate are likely to have more productive workers. Employees who would have a difficult time finding a better-paying job if they left or were fired from their current job work harder than do workers who could easily move to another job that paid equally well. Thus, some employers pay above-market wages in order to reduce turnover, improve morale, and obtain the best performance from their employees. Most employers’ investment in their workers extends beyond wages to include education and training, health coverage, and other compensation and work-life benefits. Many analysts “accept as fact that investments made in human resources, employee services and general workplace environment have a positive impact on productivity.” Consequently, firms’ expenditures for health coverage and services can be viewed as a “complex investment” designed to maintain and improve health (Berger et al. 2001, 23). Fourth, health insurance may contribute to workers’ and firms’ productivity, as healthy workers are usually more productive than unhealthy workers. Since workers with health insurance may be more likely to seek regular preventive care and get needed treatment for illnesses and injuries, those with health insurance may be less likely to miss work and to miss fewer days of work when they do fall ill. Workers’ absences are expensive to employers—finding temporary replacements is costly; the operation of production teams may suffer; and assets may be left idle—and sick employees may be less productive when they are at work. Similarly, other workers in the firm do not feel obligated to work harder to compensate for employees who are absent or unproductive at work. Unhealthy workers also may quit or retire early, creating a costly source of turnover. The benefits to employers of having healthier workers may also lower other labor costs, especially the cost of short-term and long-term disability insurance and workers’ compensation. Finally, it may simply make more sense for employers to provide health insurance because it is good business for their workers to have more or less standard health insurance benefits. Workers seeking coverage on their own may end up with different levels of insurance protection. Even if those differences reflect the workers’ varying preferences, they may not meet their employers’ needs, and many workers may end up without insurance and face high out-of-pocket bills or difficulties getting needed medical care. Do employers think health coverage affects workers’ and firms’ performance? The cost, quality, and generosity of the health coverage and of the other kinds of health-related investments that employers make all vary. Some employers offer comprehensive and generous health benefits. Some also provide access to on-site medical care and prevention and wellness programs. Some even invest in community health activities and work with providers to improve the quality of medical care available to the community as a whole. These differences suggest that employers may perceive different returns on these investments. However, at least anecdotal evidence from employer surveys and commentary in the business press shows that most employers believe that health insurance and their employees’ health are important to productivity and organizational performance. In surveys of employers both large and small, employers report that offering health benefits improves the firm's performance. In one recent survey, a large majority of small employers (78 percent) reported that offering health benefits affected recruitment; three-fourths said that it helped retain employees; and a similar proportion maintained that it improved employees’ attitudes and performance. Two-thirds reported that health benefits helped improve the health of employees, and almost 60 percent believed that helped reduce absenteeism (EBRI/CHEC/BCBSA 2000). To human resource experts, the conventional wisdom is that health insurance matters to the firm's performance. Health benefits are used to recruit and retain the best employees in a competitive labor market, and investments in health, including health insurance, wellness programs, and disability management, are seen as key components of a strategy of investing in the firm's human capital. Consultants advising employers also frequently stress the gains to employers from offering coverage. “Organizations may experience reduced costs and a more loyal workforce,” one consultant suggested. Furthermore, when benefits are made available to lower-level employees as well as “core” employees, the effect is to “emphasize a team concept and strengthen relationships between employees” (Davy 1998). Consultants acknowledge, however, that a full understanding of “the impact of employee benefits on productivity has been lacking and is just starting to emerge.” Those corporate benefit managers and chief financial officers who emphasized controlling the cost of employee benefits now realize that managing productivity losses is more important than controlling costs. Employers are now concerned with managing medical costs “with an eye toward how the management of disease will affect lost time and productivity” (Ceniceros 2000). With respect to some of these investments in health, some employers have begun to assess the effect on productivity of investing in their employees’ health and to calculate the return on their investment. As one analyst observed, “Programs that focused on health, disability, absence and turnover [have rarely] been associated with the achievement of corporate objectives. However, there is an increasing awareness that these programs may play a significant role in achieving improved organizational productivity and, for commercial enterprises, improved profitability” (Goetzel et al. 2001, 15). Suggestions for Future Research Additional research is needed to better document the value of health and health insurance coverage to employers. However, since almost all large firms offer health insurance to at least some of their employees, there is no easy way to demonstrate that not offering health coverage adversely affects firms’ performance. One way to proceed is to take advantage of differences in health plan offerings across large firms—differences in the proportion of workers made eligible for coverage, the share of premiums paid by workers, the availability of dependent coverage, the generosity of coverage, and the like—to determine how these differences affect workers’ take-up and firms’ performance. Another approach is to devise better measures of the value of the production losses associated with poor health. Existing efforts to measure the “cost of illness”—or to quantify the value of the production losses attributable to employees’ poor health—have always been uncertain. Recently, Berger and colleagues (2001) called for an improved assessment of the returns to investments in health. They argued that the existing methods of valuing productivity losses, including the “human capital” (based on lost wages or earnings) approach and the “friction cost” approach (developed in Koopmanschap and Rutten 1996 and Koopmanschap et al. 1995), are problematic and that a more careful accounting is needed to ensure an appropriate investment in health. The authors explained that “although employers realize that sick leave and mortality have a meaningful economic impact, questions are still unanswered about the best way to measure the gains and costs in a manner that helps decision makers analyze the consequences of their health investment decisions” (Berger et al. 2001, 19). They suggested that existing approaches to measuring the costs of illness are flawed because they adopt a societal, rather than an employer, perspective. For example, although premature mortality may be properly counted as a cost of illness from the perspective of society, the employer may bear only a portion of these costs. Furthermore, the existing methods of measuring the costs of illness may underestimate the true gain to employers from improved health. To complicate matters, the authors noted that no single measurement approach is likely to work for all firms. Different methods of valuing work loss are needed for firms that use team-based production approaches, for example, since the impact of a worker's absence on output is quite different in that kind of firm compared with a firm that does not use a team-based production approach (for an extensive discussion, see Pauly et al. 2002). Another useful direction for research on the business case would be to follow the model used in the industrial relations literature. There, research has focused on the benefits of workplace innovation or “high-performance work practices.” This literature shows that groups of innovative work practices greatly affect productivity. That is, firms experience large productivity gains when they adopt complementary practices such as careful recruiting and selection of workers, skills training, employment security, work teams, flexible job assignments, and labor-management communication. Analysis of the implementation of these innovative employment practices in steel-finishing lines, for example, reveals significant productivity gains (Ichniowski, Shaw, and Prennushi 1997). Other studies show that reorganizing work to facilitate team-based processes and other high-performance practices, such as incentive pay and labor-management communication, also generate significant productivity gains in the apparel industry and in medical devices and digital-imaging production (Appelbaum 2000). In much of this research, the success of these practices is not dependent on the specific conditions for any one firm. When old firms overcome the nonpecuniary costs of switching to new human resources policies and employment practices, their productivity rises significantly (Ichniowski 2000). Researchers concerned with demonstrating the importance of health coverage to firms’ productivity should draw on the lessons learned in the literature on workplace innovation. One lesson is that the productivity effects of high-performance work practices are not observed when employers adopt one or two innovative practices. Rather, the effects depend on adopting several of these innovations. However, a second observation from this literature is that even when firms face similar markets and use similar technologies, firms nevertheless adopt different practices because their business strategies are different (Cappelli 1999). Some firms adopt “high-road” employment practices—providing worker training, participatory work processes, job ladders, high wages, and good benefits—in order to cultivate a stable workforce, engender worker loyalty, and promote superior employee performance. Others may pursue a low-cost strategy. Economists cannot yet explain the different choices that firms make, but recent research suggests that similar firms, faced with similar markets, make very different choices regarding workers. And the choice of worker mix is inextricably bound up with other choices that firms make. “Firms ultimately locate along a productivity/earnings/skill locus with some firms being high productivity, high wage, and high skill while others are low productivity, low wage, and low skill” (Haltiwanger, Lane, and Speltzer 2000, 4). Making progress demonstrating the importance of health coverage to firm productivity may depend on taking into account the complex web of choices that firms make. Conclusions Although empirical research has not yet adequately documented the gains to employers, some research sheds light on what employers may gain, including lower turnover, improved access to care, healthier and more productive workers, and fewer disability claims. But the existing evidence is far from conclusive, and noticeably absent are studies that assess the direct effects of health coverage on the bottom line. Despite the difficulties of this empirical research, a more accurate accounting of the value of employer-provided health insurance to both employers and employees is needed to reveal employers’ behavior and coverage patterns. Whether or not economists demonstrate the empirical validity of the proposition that health insurance and the access to care that it provides are important determinants of firms’ productivity and profitability, many employers will continue to offer health insurance to workers and retirees and their families in order to remain competitive in labor markets. Others, though, with little evidence on the magnitude of performance gains, will find it difficult to evaluate the likely payoff from offering health insurance to workers. Quantitative evidence that health insurance matters for worker and firm outcomes may provide the kind of information that employers need to expand their investments in health insurance and workers’ health. A better understanding of employers’ motivations for offering coverage also is needed to inform policy debates. Many discussions of the anticipated effects of policy changes depend on the value that employers place on their existing plans. For example, it has been suggested that a policy to provide tax credits for individually purchased health insurance may cause many employers to drop their existing health plans. Similarly, predictions about whether employers are likely to replace defined benefit plans with defined contributions for health care also depend on employers’ valuations of employment-based health benefits. In at least one series of discussions on the topic, “veteran employee benefits managers” acknowledged that a defined contribution strategy “could disrupt employee relationships, squander the years of effort employers have invested in cost containment, and lose the efficiencies associated with … employer-sponsored health insurance products.” The change would amount to “a substantial setback for companies that have been trying to promote a stronger link between health, health benefits, and productivity, including reducing disability and absenteeism” (Office of the Assistant Secretary for Planning and Evaluation 2000, 6). To the extent that employers view health benefits as investments in the workforce, the likelihood that they would drop employment-based plans in response to individual tax credits or shift to defined contributions may have been overstated. A more explicit accounting of the value of employment-based health insurance to both workers and firms would provide a more complete understanding of why workers want group health insurance and why firms provide it.
2003-03-06T00:00:00
2003/03/06
https://pmc.ncbi.nlm.nih.gov/articles/PMC2690190/
[ { "date": "2024/01/01", "position": 41, "query": "corporate taxes worker well-being" }, { "date": "2024/04/01", "position": 45, "query": "corporate taxes worker well-being" } ]
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Los Angeles City Enacts Healthcare Workers Minimum Wage ...
Los Angeles City Enacts Healthcare Workers Minimum Wage Ordinance
https://www.cdflaborlaw.com
[ "Carolina Schwalbach", "Mark S. Spring", "Joel M. Van Parys" ]
“Healthcare Workers Minimum Wage Ordinance” provides Los Angeles City healthcare workers with minimum wage of $25 on August 13, 2022 and rising in 2024.
Since the start of the COVID-19 pandemic, many cities throughout California have enacted “hazard pay” or “hero pay” ordinances across a variety of industries with the healthcare industry as a focal point. On July 7, 2022 Los Angeles Mayor Eric Garcetti signed the “Healthcare Workers Minimum Wage Ordinance” (“Ordinance”) which, effective August 13, 2022, increases minimum wages for non-supervisory/managerial employees of privately-owned healthcare facilities within the City of Los Angeles. The stated purpose of the Ordinance is to “fairly compensate[] [healthcare workers] for keeping us safe while facing risks to themselves and their families.” The bill recites that between 2019 and 2020 job vacancies for various types of nursing personnel increased by up to 30%, and that nearly 30% of healthcare workers are considering leaving the profession altogether (based on a 2021 survey by the Washington Post-Kaiser Family Foundation). The authors claim that an increase in the minimum wage to $25.00 per hour will help alleviate some of these concerns. The Ordinance will go into effect on August 13, 2022 and provides for further annual increases to the minimum wage based on the annual increase in the cost of living (as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers) beginning on January 1, 2024. The Ordinance only applies to privately owned facilities within the boundaries of the City of Los Angeles including: Licensed general acute care hospitals as defined in Section 1250(a) of the California Health and Safety Code. Clinics under Section 1206(d) of the California Health and Safety Code. This includes clinics conducted, operated, or maintained as an outpatient department of a general acute care hospital or acute psychiatric hospital. A licensed acute psychiatric hospital as defined in Section 1250(b) of the California Health and Safety Code, including an acute psychiatric hospital that is a distinct part of another health facility. A licensed skilled nursing facility, as defined in Section 1250(c) of the California Health and Safety Code, that is a distinct part of a general acute care hospital or acute psychiatric hospital. A licensed residential care facility for the elderly under Section 1569.2 of the California Health and Safety Code, located or licensed at the same address as an acute psychiatric hospital or located on the same campus or parcel of real property as an acute psychiatric hospital. A licensed chronic dialysis clinic as described in Section 1204(b)(2) of the California Health and Safety Code. All facilities that are part of an Integrated Healthcare Delivery System. The definition of healthcare workers covered by the bill includes: “clinician, professional, non-professional, nurse, certified nursing assistant, aide, technician, maintenance worker, janitorial or housekeeping staff person, groundskeeper, guard, food service worker, laundry worker, pharmacist, nonmanagerial administrative worker and business office clerical worker.” However, supervisors and managers are not included. The Ordinance explicitly prohibits retaliation and provides that “taking any adverse action against a healthcare worker within 90 days of the worker’s exercise of rights protected under this article shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights.” Moreover, the Ordinance prohibits employers from funding the minimum wage increase by: Reducing the workers’ premium pay rates or shift differentials; Reducing vacation or other non-wage benefits; Reducing the workers’ hours of work; Laying off healthcare workers; or Increasing charges to any healthcare worker for parking, work-related materials or equipment. Therefore, any staff reductions following the implementation of the Ordinance will likely be followed by litigation. Los Angeles City private healthcare employers covered by this ordinance should review pay practices to ensure compliance effective August 13, 2022. Healthcare facility employers can seek a short waiver if they can demonstrate by “substantial evidence that compliance with this article would raise substantial doubt about the Employer’s ability to continue as a going concern under generally accepted accounting standards”. Thus, any healthcare employer within the City of Los Angeles should consult the Employer’s healthcare counsel, such as CDF’s healthcare practice attorneys, for further guidance. Our healthcare practice attorneys at CDF Labor Law LLP will continue to post regarding any pertinent developments.
2002-08-06T00:00:00
2002/08/06
https://www.cdflaborlaw.com/blog/healthcare-workers-minimum-wage-ordinance-provides-los-angeles-city-healthcare-workers-with-minimum-wage-of-25-on-august-13-2002-and-rising-in-2024
[ { "date": "2022/07/20", "position": 14, "query": "labor regulation healthcare workers" }, { "date": "2022/07/20", "position": 27, "query": "labor regulation healthcare workers" }, { "date": "2022/07/20", "position": 48, "query": "labor regulation healthcare workers" } ]
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White-collar workers' unions report increased stress and ill-health
White-collar workers' unions report increased stress and ill-health
https://www.eurofound.europa.eu
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... work organisation, health and leisure time. The speed of work is very high nowadays, TCO concludes, and workers face great demands to be ...
Many employees pay with their health for workforce reductions and an increased speed of work, and this is too high a price to pay, claims the Swedish Confederation of Professional Employees (TCO) in a new report on stress in working life published in May 2000. Nine out of 10 white-collar workers say that they work against the clock in their daily tasks; 40% often skip their lunch break and other breaks due to lack of time; and 65% do not have time enough to finish their tasks properly. These are among the findings of a report - entitled Stressed out, committed to work and burnt out, or bored and healthy - must one choose? (Stressad, engagerad och utbränd eller uttråkad och frisk - måste man välja) - carried out by Fama Konsult AB and Argument analys & idé for the Swedish Confederation of Professional Employees (Tjänstemännens Centralorganisation, TCO), and published on 24 May 2000. The TCO survey was carried out in 1998 and 1999 in cooperation with its affiliates, the Financial Sector Union of Sweden (Finansförbundet), the Union of Insurance Employees (Försäkringstjänstemannaförbundet) and the Salaried Employees' Union (Handelstjänstemannaförbundet, HTF). Some 2,800 workers belonging to the three trade unions were asked about their job situation and working hours, with a special focus on working time related to work organisation, health and leisure time. The speed of work is very high nowadays, TCO concludes, and workers face great demands to be fast, flexible, changeable and always available. The conditions for doing business have changed, and competition and rapid technical developments have led to major changes for workers. Almost half of the white-collar workers surveyed have seen their work tasks change over the past two years (1998 and 1999), according to the study. This does not mean, however, that workers find theirs jobs boring: nine out of 10 white-collar workers state that they have an interesting job. More sick leave It is claimed that one consequence of the tougher climate at the workplace is an increasing amount of sick leave being taken. According to statistics from the National Social Insurance Board (Riksförsäkringsverket, RFV), in September 1999, 14% of 15,000 workers on long-term sick leave stated that the reason for their sick leave was stress and mental strain. In September 1998, the corresponding figure was 11.7%. In 1999, the total cost of sick leave to the state was SEK 24.5 billion, a figure that RFV expects to rise to SEK 41.2 billion in 2003. The demands of customers in the very customer-oriented sectors of banking, insurance and commerce, where the employees surveyed work, have increased quite considerably during the past five years, according to the workers. Some 80% of the workers state that customers want much quicker service, more information, more pleasant behaviour and more quality overall. The demands of customers control the working situation more than the employer does, report 59% of those surveyed. The speed of work is reported to be intense, with 40% of workers stating that they do not eat lunch and that they skip other breaks in order to finish whatever they are doing. As many as 65% state that they do not have enough time to catch up with their tasks. When they go home, 55% of the workers report that they are exhausted. Influence and control A large proportion of the white-collar workers surveyed state that they cannot influence their work situation. For example: 59% of the workers say that they have little or no possibility to decide when to work; 84% that they cannot decide where (at home, in the office or elsewhere) they work; and 68% that they cannot decide how many hours they work during a given week. Around 90% of the survey respondents say that they have an interesting job, which is meaningful and pleasant. More than half of the group, 59%, go so far as to state that they are dedicated to their jobs. However, it appears that the high-speed, stressful work situation may lead to loneliness, making the job more and more of a burden. The workers surveyed are generally content with their colleagues: 28% would like to have better contact with their colleagues, while 23% would like to have better contact with their customers. Health and gender differences Eight out of 10 white-collar workers in the survey group believe that stress at work will increase in the coming five years. Three out of four workers find their jobs mentally strenuous. In looking for symptoms that are often related to stress, the authors of the TCO report found that 51% of the workers surveyed had problems with their stomach during the past three months, 66% had problems with their back and neck and 65 % had suffered from headaches. The workers reporting a high speed of work have more stress symptoms than workers with a lower work speed. The TCO researchers also tried to measure the relationship between the degree of influence on the individual work situation and health. Among respondents with a high degree of influence over their work situation, 50% state that they have never been off work due to sickness. By contrast, only about 25% of those workers with a low level of influence say that they have never taken sick leave. However, while finding that there is a relationship between influence and health, the researchers state that it differs between male and female white-collar workers. For the male workers, it is important to be able to control the development of their own situation and what tasks they will perform, and to know how much they are going to work during the week. Men who have this control over their work situation tend to feel better and to experience fewer stress symptoms. On the other hand, the researchers state that female workers do not find it so important to know the future development of their work tasks or how much they will need to work during a week. However, it is important for women to decide themselves how the work tasks are to be carried out and which hours they need to work during a week. The researchers state that these gender differences also reflect the fact that men and women in the finance and commerce sector tend to work different occupations. In the occupations dominated by women, the work is controlled in more detail and workers do not have any major impact on their work situation. Therefore it is important for the women workers to decide how they carry out their tasks. The job situation in many of the occupations dominated by men is much more unrestricted, and how they do their jobs is their own business. Men are more interested in influencing their career opportunities, according to the survey. Finally, TCO makes a statement in the report, as the central organisation for Swedish white-collar workers. It emphasises that stress, "burn-out" and ill-health at work must be fought. The theories and opinions as to the reasons for increasing stress and sick leave differ, with some people holding that stress is an individual problem. However, one cannot blame the employers only, as many researchers and the media often do, TCO states. Nor can individual workers be blamed for their ill-health. Both the work environment perspective and the individual perspective must be taken into account in developing good work environments, TCO concludes. Labour shortages and workplace stress A report from the Swedish National Board for Industrial and Technical Development (Nutek), published on 8 June 2000, supports the findings of the TCO survey. The Nutek report, Kompetens - en bristvara?, examines enterprises' views on the supply of skills. The lack of technically-skilled labour in certain sectors has now increased to the extent that economic growth and the health of workers are threatened, the report finds. An increased work burden for employees is one of the consequences of skill shortages, and the situation for the employees will soon be much worse if nothing is done, says Nutek. About 80% of the 200 companies surveyed in the report state that, as a direct cause of recruitment problems, there is an increased work burden, and about 60% state that more overtime is being worked. Commentary The demands for more flexibility and a greater customer orientation, insecurity in the labour market and labour shortages in certain sectors are all increasing pressures on employees. The possibilities for individuals to influence their own work situation are crucial for determining how the increased demands are experienced, and a large number of white-collar workers cannot influence their own work situation. Part of the increased stress at work relates to labour shortages in certain sectors and occupations, and one way to solve this may be through more education for employees. The various trade union confederations are well aware of the increasing stress at the workplace in Sweden, as are employers. This is being manifested in various conferences, reports and discussions in the media. In February 2000, the government appointed a working group, with representatives of the social partners and other interested parties, to look into the problems and possibly propose some changes in the work environment legislation and other measures. The working group is due to present the results of its work in September 2000. (Annika Berg, Arbetslivsinstitutet)
2000-06-27T00:00:00
https://www.eurofound.europa.eu/en/resources/article/2000/white-collar-workers-unions-report-increased-stress-and-ill-health
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Blue-collar workers latest group to be sucked into the Web - CNN
Blue-collar workers latest group to be sucked into the Web
https://www.cnn.com
[ "Joel Obermayer" ]
During the last 16 months, the 33-year-old Hosford has spent most of his weekday evenings in technology classes at ECPI Technical College -- a ...
Blue-collar workers latest group to be sucked into the Web (IDG) -- Greg Hosford's afternoon job is a quick one. He sticks his head under a car's dashboard, wielding an electric screwdriver to loosen the stereo housing. "This should be pretty easy," he says, yanking off a plastic faceplate. Thirty minutes later he's installed a new unit. Then it's back to studying. He's always studying. In the garage where he works installing car stereos for a small audio equipment chain, he's got a backpack holding 30 pounds of computer manuals and textbooks. MESSAGE BOARD Internet society This self-professed grease monkey is looking to trade his socket wrenches for a spot in the information economy. During the last 16 months, the 33-year-old Hosford has spent most of his weekday evenings in technology classes at ECPI Technical College -- a for-profit training company based in Virginia Beach, Va., with an office in Raleigh. Instead of tinkering with fuses and dash-mounted amplifiers, he plans to raise his wages by maintaining routers and networks. With unemployment at a 30-year low, technology companies are clamoring for new employees. The computer geeks have long since been picked over. Graduates from four-year colleges can't fill all the openings. And opportunities are popping up for men and women like Hosford -- people from blue-collar backgrounds who are taking advantage of the tight tech labor market and switching careers. Indeed, the Information Technology Training Association, a trade group based in Austin, Texas, reports that these career-changers have helped drive the increasing demand for tech education over the last 18 months. "Enrollment is up in these programs across the country, and it's mainly from people in their mid-30s and older who see the economic benefits that IT jobs can bring," says Rachel Cheeseman, ITTA executive director. A study conducted by the Information Technology Association of America last winter concluded that more than half of the 1.6 million new jobs created this year by technology companies and other businesses will go unfilled. The ITAA, an Arlington, Va.-based trade group, also says 327,000 of these open positions will be tech-support jobs. Their salaries are often higher than those for blue-collar workers. For example, the average income for industrial machine operators was about $12 an hour vs. about $14 for computer operators, according to a Bureau of Labor Statistics' 1997 national compensation survey. Slightly more senior computer operators make $20 an hour. The wage gap rapidly widens as those with greater chances for advancement move up the employment ladder. Hosford's class at ECPI (which stands for Electronics, Programming, Computers or Information Systems) has people from different walks of life: a police detective, an automobile tire installer and a mother of three who works as a low-level administrator in a local school system. All pay $10,000 to $14,000 for the program and attend five hours of class, most weekday nights in intensive seven-week units. Curriculum courses teach practical applications in subjects from networking and Web page design to computer repair. Around a quarter of those who start the classes drop out. But 94 percent of the graduates of Hosford's program get jobs, typically entry-level positions such as customer relations, maintenance and administration. With their newly acquired skills, many are able to move up quickly. "It's a year or two of my life to better my life," says Hosford, who grew up in a working-class part of Midland, Mich. "When you're paying a lot of money, you want to get everything you can out of it." Similar programs exist in every major job market in the country -- in community colleges, vocational schools and government-sponsored training programs. Still, private, for-profit educational institutions are the center of most of the action. Some fly-by-night outfits aggressively market themselves on television, but many of the biggest technical colleges -- like DeVry Institute and ECPI -- develop curricula that give graduates a clear technical foundation. Indeed, the ITTA trade group has seen its membership of technology schools grow by about 40 percent over the last year. And ITT, a school better known for training in air conditioning and electronics, has added an information technology specialization. The program started with about 30 students at one campus in 1998 and now enrolls 1,600 at 50 campuses, making it the fastest rollout in the company's history. But those who complete technology training programs may have little in common with the kids who spent their high-school days learning C++. Hosford and his fellow students often are tinkerers; most have had little computer exposure, but once they got a taste it wasn't hard to get hooked. Peter Leyden, a futurist for Global Business Network, an Emeryville, Calif.-based think tank, says those who succeed see their interest building with each new thing they learn. "Once they interact with the technology, it all starts to flow," he adds. "The enthusiasm starts and keeps growing as they get more exposure." Take 35-year-old Tony Mele, who built hot rods growing up in New Britain, Conn., and spent nine years fixing jets for the U.S. Marine Corps. As a sergeant with a branch of North Carolina's state police, he found himself drawn to computer-related investigations. "At first I just wanted to know what made them tick ... just like when I've taken apart surveillance cameras," says Mele. "I took apart a computer and built one myself. Pretty soon I became the guy everyone came to with questions." These workers also are discovering that age need not be a deterrent in making a career switch, especially in the current employment environment. Leonard Watkins, 59, worked for 35 years stringing cables for Ameritech, the Midwestern phone company. He took early retirement but found himself bored. After enrolling in classes sponsored by Focus Hope, a Detroit-based economic development group that runs retraining programs for industrial workers, Watkins got a job with Hewlett-Packard maintaining routers the company runs for Ford. "I'm not really a youngster, and here I am starting all over again," Watkins says. "I was determined I wasn't going to be left behind, so I kept on trucking. I don't think this field is just for nerds or people with tattoos and rings in their noses." Watkins and others are looking to tech occupations to replace the sense of security and wages they once got from manufacturing and trade jobs. While there may be no more 30-year careers at a single company, those with tech skills get higher pay and more mobility. But they face a struggle before they can get that kind of flexibility. A look around the garage where Hosford works shows how much energy he's put into his new path. In one corner gathering dust are three custom-drilled bowling balls he used when he had time for league play. "I've stopped all my hobbies," says Hosford. "I've dropped everything but riding my dirt bike on Sundays." With graduation in sight, he's hoping for a job with a company that builds corporate networks. But like many innovators who have taken a more direct path to technology, Hosford's ultimate plan is to go out on his own. He figures he'll be able to install business networks from scratch. There are plenty of small companies that would be interested, he adds. "I already know the first three people I'd want to hire," says Hosford one afternoon as he wraps up his homework. "They're in my class." RELATED STORIES: RELATED IDG.net STORIES: RELATED SITES: Hewlett-Packard Company DeVry Inc. Note: Pages will open in a new browser window External sites are not endorsed by CNN Interactive.
2000-06-06T00:00:00
https://www.cnn.com/2000/TECH/computing/06/06/blue.collars.online.idg/index.html
[ { "date": "2000/06/06", "position": 76, "query": "technology regulation blue collar workers" } ]
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Monopoly Capital at the Turn of the Millennium - Monthly Review
Monopoly Capital at the Turn of the Millennium
https://monthlyreview.org
[ "John Bellamy Foster", "The Editors", "Paul M. Sweezy", "John J. Simon", ".Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow", "Class", "Wp-Block-Co-Authors-Plus", "Display Inline", ".Wp-Block-Co-Authors-Plus-Avatar", "Where Img" ]
Hence, inflation (whether double-digit or at more moderate levels) has come to characterize monopoly capitalism. Price deflation, once fairly ...
John Bellamy Foster is co-editor, along with Robert W. McChesney, of this issue of Monthly Review . He is the author of Marx’s Ecology and The Vulnerable Planet, both published by Monthly Review Press. This article is dedicated to Paul Sweezy on his 90th birthday. It is also meant as a personal expression of my conviction that Monopoly Capital (1966) by Paul Baran and Paul Sweezy, which provided a rich analysis of capital accumulation and crisis rooted in insights from Marx, Keynes, Kalecki, and Schumpeter, is still the most useful starting point from which to view the historical evolution of the United States and other advanced capitalist economies. My intention in this article is to use that general analysis to comment on some of the central empirical developments within the economy in our time—in a new millennium and under conditions of the globalization of monopoly capital. Economic analysts, as everyone knows, have widely differing views on the way the economy works. The single most important division lies between right and left—a division that has its roots in class. But even among those on the left there are areas of sharp disagreement. One of these is over the centrality of the Keynesian revolution to the development of economics. Did the revolution in economic thought, associated with thinkers such as Keynes and Kalecki, teach things that Marxist political economists should view as essential? Another disagreement is over the role of monopoly and competition. How central is the concentration and centralization of capital to our understanding of the workings of capitalism today—a full century after Marxists and other radicals first raised the question of monopoly capitalism? Whatever one’s abstract theory is—and all theories by definition rely on a degree of abstraction—its usefulness lies in its capacity to make sense of everyday reality, while providing the strategic analysis necessary for practical revolutionary solutions. Throughout its history, MR has advanced a theoretical view known as monopoly capital or stagnation theory. This perspective, outlined in Baran and Sweezy’s Monopoly Capital, argued that Marx’s “law of the tendency of the rate of profit to fall” was no longer directly applicable to the monopoly capitalist economy that emerged at the beginning of the twentieth century, and had to be replaced by a “law of the tendency of surplus to rise”—where surplus was defined as the difference between the wages of production workers and total value added. A key contradiction of capitalism in its monopoly stage is therefore that of rising surplus and the associated problems of surplus absorption. Rising surplus and the accumulation of a mountain of surplus means that capitalist firms are faced with the problem of how to employ all of it, i.e., how to use the piled-up cash to make more profit. True, capitalists can use or waste some of this surplus for personal pleasure. But that is peanuts compared to the size of the growing surplus. So the problem remains one of how to absorb all of the surplus actually and potentially available. Generally, the answer is sought in new investment, but that expansion of capital comes up against consumption limits imposed by the distribution of income: who will buy the increased volume of output? New epoch-making innovations—resembling the steam engine, the railroad, and the automobile in the overall effect on accumulation—could conceivably provide sufficient profitable investment outlets, but such epoch-making innovations are historical rather thaneconomic factors that cannot be counted on to appear when needed or on the scale necessary in terms of surplus absorption. Even the astounding new field of computer/digital technology has so far absorbed only a small part of the massive economic surplus hanging over the economy. Foreign investment, which once provided an outlet for surplus, has become an efficient device for the transfer of surplus from the periphery to the core of the capitalist system, thereby further compounding the problem. All of this means that the system has a powerful tendency towards stagnation, arising from an inability to find outlets for all of the surplus actually and potentially generated at the level of production—a problem partly (but only partly) compensated for by the rise of various countervailing factors, such as the growing sales effort, military spending, and financial expansion. Like all theoretical perspectives this one has to be put to the harsh test of reality, and modified where necessary to explain changing historical conditions. In what follows, I will attempt to show concretely, by focusing on current historical developments, why I believe this general approach is vital to the explanation of economic conditions today—at the beginning of a new millennium. The Party The first thing one notes, in turning to those accounts that dominate today’s business news, is that corporations are awash in rising profits. In the final months of 1999, the business press was euphoric as it became clear that “the party”—referring to the current period of extraordinarily high profits—would continue past the millennial turning point into the year 2000. In its quarterly profits scoreboard in mid-August, Business Week declared that “Corporate America’s profits are cruising at warp speed …. Profits for the 900 companies on Business Week‘s Corporate Scoreboard rose a merry 28% during this year’s second quarter, the best performance since 1996’s final period.” What was fueling the expansion in the late recovery phase of the business cycle, the same magazine had declared two weeks before, was the fact that corporations were awash in cash, with 851 billion dollars in retained earnings. In December 1999, word was out in the business community that the U.S. economy was exiting “the millennium with an unprecedented bang.” Needless to say, the big bash occurring at the economic pinnacle of the society is an exclusive affair. The growth of wealth at the top, as Business Week told its corporate readers, has been accompanied by a relative decline in income and wealth shares at the bottom—with little in the way of any real income gains among wage earners at present. A Harris poll at the end of 1999 showed that most of the U.S. population believe that they have not benefitted from what is now, according to the National Bureau of Economic Research, the longest business cycle upswing in the nation’s history, ongoing since March 1991—hardly a surprising result, with real wages still “barely budging,” and only about a fifth of the population owning stock market assets outside of retirement funds. “The biggest fault line,” Business Week declared in its December 27, 1999 issue, … seems to be between Americans who are getting an extra income boost from the stock market or a dot.com employer, and everybody else. Indeed, the most striking development in the New Economy for many has been the end of the 40-hour week: Americans now log more hours on the job than workers in any other industrialized nation. But growth in real hourly compensation has dropped from a 4.3% annual rate in the third quarter of 1998 to 2.3% this year …. This may explain why 51% of Americans feel cheated by their employer, according to a new study from Opinion Research Corp., International. Indeed, Business Week warned its corporate readers, the 52 percent of the population who, in the same Harris poll, registered sympathy with the protesters in Seattle were responding to real economic grievances, and the protests could soon migrate in a big way from streets to workplaces. Monopoly Capital and the Tendency of Surplus to Rise The contradictions of the economy, however, are far more acute than a mere perusal of the business press would lead one to believe, and relate to the entire development of accumulation under monopoly capitalism. One way in which to begin to understand the conditions now confronting the U.S. economy is to look more concretely at the economic surplus being generated by the society. An item-by-item accounting of total economic surplus, incorporating all of the relevant components from official government estimates of national income and output, is a difficult undertaking which obviously cannot be attempted here. Nevertheless, in a extremely simplified version of such an analysis, corporate profits plus depreciation plus net interest can be taken as a first approximation of the actual economic surplus—one which, however, leaves out many elements that properly belong to surplus, such as expenditures on marketing, now running at more than one trillion dollars a year. When we look at the trends in economic surplus, measured in this limited way, we discover that the share of surplus in total output is increasing. The average annual percentage of profits plus depreciation plus net interest of corporate business in Gross Domestic Product (GDP) rose from 14.2 percent between 1946 and 1973 to 14.7 percent between 1974 and 1998. Further, corporate profits plus depreciation plus net interest as a percentage of GDP soared to their highest level ever in 1997 at 16.6 percent—rising for the first time since the Second World War above 16.1 percent, the level reached in 1929 (the year of the Great Crash), and surpassing the Second World War peak of 16.5 percent in 1942. This strongly suggests that the problem of rising surplus has in no way lessened in recent decades, and remains endemic to monopoly capitalism as it enters the new millennium. The strength of the tendency of surplus to rise can be traced historically, as we have seen, to changes that occurred as the system evolved from its freely competitive to its monopoly phase—that is, to the shift from an economy consisting largely of small family-based firms to one dominated by large monopolistic (or oligopolistic) enterprises. Competition begets monopoly and monopoly begets competition—but in an historically evolving pattern. Competition, rather than simply disappearing under monopoly capitalism, became in some ways more intense. Competition over productivity and innovation—the drive to obtain the low cost position—only stepped up its pace. New dominant forms of competition also arose, especially those associated with marketing—targeting, product development, advertising, and sales promotion. Yet, in areas of price, output, and investment, modifications took place in the nature of competition as a result of the concentration and centralization of capital—sharply distinguishing monopoly capitalism from the freely competitive age that preceded it. With the rise of the giant firm, price competition ceased to take place in any significant sense within mature monopolistic industries—as opposed to new industries in which a shakedown process is occurring (such as computers and digital technology in general), and industrial sectors that resemble the firms of the earlier competitive stage. Megacorporations tend to price corespectively, as Joseph Schumpeter said, in a process of indirect collusion, acting as price-makers rather than price-takers. Prices for manufactured products in mature monopolistic markets tend to go only one way: up. Hence, inflation (whether double-digit or at more moderate levels) has come to characterize monopoly capitalism. Price deflation, once fairly normal for capitalism, largely disappeared in mature industries and at the aggregate level in the system as a whole with the rise of the regime of big business. And this is true despite the fact that prices for raw materials, particularly from the third world, have had a tendency to be depressed (indeed to be caught up in deflationary spirals)—a function of the workings of the imperialist system. The decline of price competition in the system as a whole has its counterpart in the change in the way in which output and investment are determined. Rather than lower prices in the face of a shortfall of demand as in a freely competitive economy, the typical giant firm tends to take up the slack by lowering its output and increasing its level of excess productive capacity in order to protect profit margins (the mark-up on prime production costs). As a result, investment, which is governed by expectations, tends to be regulated much more by the level of excess capacity—and by expected profits on new investment in plant and machinery if this capacity were to be expanded—than by anything else. Empirical studies have consistently shown that it is only when capacity utilization rises to 85 percent in the economy as a whole that national investment is spurred; but this process is a self-limiting one, since new investment means the growth of additional manufacturing capacity, which must find a market—investment itself then tends to lead eventually to idle capacity. In this strange, semi-regulated world of monopoly capital, there is no longer a life-or-death competition threatening the survival of the mature capitalist enterprise (though mergers in search of greater monopoly power are a common occurrence). Rather, the giant corporations that dominate the contemporary economy engage primarily in struggles over relative market share. Although conventional economics textbooks still tell us that the existence of a perfectly competitive economy guarantees that economic profits are short-lived or nonexistent, in the real world of late capitalism, large firms not only obtain persistent profits, but there is a hierarchy of profit rates between firms. It remains a competitive world for corporations in many respects, but the goal is always the creation or perpetuation of monopoly power—that is, the power to generate persistent, high, economic profits through a mark-up on prime production costs. The Generation and Absorption of Surplus Since the intent here is to explain how the growth of monopoly capital is related to such fundamental tendencies as rising surplus and economic stagnation, and how this generates various distortions in the way the capitalist economy is supposed to work (according to its own ideal conception), it is useful to turn to the work of the post-Keynesian economist Myron Gordon, who has developed an empirical analysis of the underlying pattern of accumulation, focusing on the ratio of value added to the wages of production workers. Gordon shows that, while over the years 1899 to 1949 the ratio of value added to the wages of production workers in manufacturing in the United States fluctuated around 2.50, between 1949 and 1994 it rose fairly steadily to 5.25, more than double its 1949 value. What this means is that there is a growth in the ratio of surplus to the wages of production workers as determined at the level of production. The shift in the employment structure of manufacturing firms, from one that was geared primarily to the employment of production workers to one in which production workers are vastly outnumbered by nonproduction workers, is closely associated with this rising surplus within production and with the pursuit of monopoly power and profits. At the beginning of the twentieth century, Gordon notes, manufacturing firms…were engaged primarily if not solely in production. By the end of the century their primary activity had become the pursuit of monopoly power. The large modern corporation incurs the costs of a wide range of nonproduction activities for the purpose of maintaining and increasing its monopoly power. Hence, they may be called monopoly activities. The objective of monopoly power is to increase the margin of price over production cost for the firm’s products and to increase the sale of the products at these prices. These activities include research and development for the purpose of improving existing products, discovering new products, and reducing production costs. They include selling and advertising to increase sales and the markup of price over production costs. They include labor relations to persuade or intimidate workers to produce more or accept lower wages. They include political contributions, lobbying and corruption of government officials in order to obtain natural resources on favorable terms and other favors of government. They include the employment of lawyers, accountants, and financiers to avoid and evade taxes and to influence tax legislation. I could go on. These activities may be harmless apart from their cost and their consequences for the distribution of income. They may be beneficial to the degree that productivity is raised, or they may be malignant in their consequences for society. In any event, what they all have in common is the pursuit of the profits to be gained from monopoly power. In addition to expenditures on the pursuit of monopoly power as such, there are also of course expenditures which can be seen as disguised profits—such as the enormous income (including reserves for severance and pensions) set aside for top management. Although treated as “cost deductions” before profits are calculated, these returns are obviously part of the economic surplus—indeed the lavish rewards to top corporate officers and their hangers-on may be largely returns for the successful pursuit of monopoly power, the immediate goal of today’s “strategic management.” “Monopoly workers” are defined by Gordon as all employed workers minus production workers, and thus are equivalent to nonproduction workers. Between 1899 and 1949, the number of monopoly workers increased at more than twice the rate of that of production workers. From 1949 to 1994, the growth of production workers was stagnant (falling at the end of the period), while the average annual growth rate for monopoly workers was around 2 percent. A concrete example of the radical changes taking place in this respect in large corporations can be seen in the case of Microsoft. In fiscal year 1997, Microsoft had a total sales revenue of 11.4 billion dollars, while its labor and material costs of production were only 1.1 billion dollars. (Research and development was 1.9 billion dollars, sales and marketing 2.9 billion dollars, general administration 362 million dollars, and gross profits before taxes 5.3 billion dollars.) Prime production costs (the labor and materials costs of production) thus accounted for less than 10 percent of sales revenue, while profits made up 47 percent of sales revenue. The remainder was accounted for by the costs of the pursuit of monopoly power. The 5.3 billion dollar profit was earned with a total investment in equipment, inventory, and buildings of less than 2 billion dollars. Microsoft may seem like an extreme example—but as the leading high-tech corporation in the world, it also reflects the extreme direction that capital is taking in general. Moreover, the phenomenon is not simply confined to computer software firms or dot.coms. Nike, to take an additional case, subcontracts nearly all of its production to owners of factories in China, Indonesia and Vietnam. Tens of thousands of workers in Asia employed by these subcontractors produce the shoes sold by Nike, which is thus free to devote almost its entire paid employment to the pursuit of monopoly power. In 1992, Nike’s payroll included eight thousand people globally, almost all of whom were in management, sales promotion, and advertising—geared to Nike’s swoosh label products. The economic surplus generated by these means is enormous, as are the costs of Nike’s pursuit of monopoly power. In 1992, Michael Jordan received twenty million dollars from Nike for promoting its shoes. This was as much as the entire payroll of the four Indonesian factories involved in the production of Nikes, where the mainly female workers sometimes earned as little as fifteen cents an hour while working eleven hour days. By 1996, conditions for these workers had improved only slightly; twenty-five thousand workers produced seventy million pairs of shoes annually (each of which sold for between forty-five and one hundred dollars in North America) and received an average of 2.23 dollars per day, while often being compelled to work six hours overtime. In Vietnam, where Nike was subcontracting much of its production by the late 1990s, conditions were even worse. In 1997, most of the thirty-five thousand workers in Vietnam producing Nikes were women who worked twelve hour days for a labor cost of two dollars per pair of shoes. Under attack for the labor conditions in the factories that make its shoes, Nike has responded that it is simply a marketing company, uninvolved in production. In the words of its vice-president for Asia, “We don’t know the first thing about manufacturing. We are marketers and designers.” Nike is an extreme example, mainly because of the extent of its outsourcing and subcontracting of production. In most manufacturing, direct investment in production is deemed vital, since the capacity to generate economic surplus is rooted in production, and in innovations occurring at this level. Nonetheless, the general shift in the overall economic emphasis of firms from production to marketing and finance has been central to the evolution of the large firm throughout the past century. As early as 1939, in a Federal Trade Commission Inquiry, General Motors revealed that a Chevrolet selling for 950 dollars had production costs of around 150 dollars while the remainder went to marketing, distribution, and profits. Mergers and Financial Speculation The economic surplus generated by firms, according to the foregoing analysis, is enhanced by the pursuit of monopoly power and the pursuit of monopoly power generates its own costs, which increasingly dominate the balance sheets of firms. The expenditures associated with the pursuit of monopoly power are not reducible to the sales effort, but also include the absorption of surplus through such means as corporate mergers and financial speculation. As economic surplus expands, so do corporate mergers, which have as their object the pursuit of higher degrees of monopoly power through the concentration and centralization of capital. Hence, economic surplus that could be used for investment is instead used up in the buying and selling of firms—a competitive race that takes on more and more urgency as it becomes more global in character. The two greatest merger waves in history are those associated with the opening and the close of the twentieth century. “Measured relative to the size of the economy,” according to the Economic Report of the President, 1999, “only the spate of trust formations at the turn of the century comes close to the current level of merger activity,” with the value of mergers and acquisitions in the United States in 1998 alone exceeding 1.6 trillion dollars. Corporate mergers and acquisitions grew at a rate of almost 50 percent per year in every year but one between 1992 and 1998. Globally, more than two trillion dollars worth of mergers were announced in the first three quarters of 1999. The leading sectors in this merger wave have been in high technology, media, telecommunications, and finance but mega-mergers are also occurring in basic manufacturing. It is not simply the quantitative extent of mergers and acquisitions that matters but also their type and purpose. Many of these mergers, as noted in the Economic Report of the President, are “synergy-seeking mergers” in which large corporations are seeking to take advantage of “economies of scope” by moving into closely related markets. Further, while the great merger wave at the beginning of the twentieth century was directed mainly at control of an overwhelming share of domestic markets by three or four firms, the merger strategy of today has shifted to consolidating a substantial share of international markets through: (a) establishing production facilities in other industrialized countries (where the biggest markets are to be found), and (b) cross-border buyouts and mergers. The merger in 1998 of Daimler Benz and Chrysler to form a 130 billion dollar company, DaimlerChrysler, which Business Week called “the first global car colossus,” is a case in point. It was an attempt to consolidate a global market position in an industry where there “there is plant capacity to build at least 15 million more vehicles each year than will be sold.” According to McGraw-Hill business analysts, such consolidation within the auto industry worldwide is inevitable, with the number of leading auto companies in the world expected to drop by half, from forty to twenty, in the opening decades of this century. The DaimlerChrysler merger was followed last year by Ford’s acquisition of Volvo. Moreover, the globalization of monopoly capital in the auto industry is stepping up its pace. According to The Wall Street Journal of February 14, 2000, The world’s two biggest auto companies are about to enter a bidding war for an insolvent South Korean car maker—and the outcome could determine who will be No. 1. Ford Motor Co. intends to take on General Motors Corp. in the auction of Daewoo Motor Co., Ford Chairman W. Wayne Booker confirmed over the weekend, ending weeks of speculation about Ford’s plans. GM set the auction in motion when it offered around $6 billion for most of Daewoo’s assets. People close to the situation say DaimlerChrysler AG also is seriously considering jumping in. A DailmerChrysler spokesman wouldn’t comment. Why are the world’s biggest car makers so keenly interested? At first glance, Daewoo Motor seems hardly worthy of such attention. It owes sixteen billion dollars it can’t repay, has car factories in some of the world’s oddest corners, and its American marketing arm even publishes a brochure that opens with the question, “Dae-who?” But the contest is one for world domination. Ford’s string of 1990s acquisitions—capped by its purchase a year ago of Volvo Cars Ltd.—has positioned it to overtake GM for global auto-making leadership. Whichever company gets Daewoo Motors’ annual worldwide capacity of about two million cars will have the potential to be the biggest. Despite the fact that the current merger frenzy, as the above example dramatically demonstrates, is directed at global rather than national markets, the underlying aim remains a familiar one. As Michael Mandel, economics editor of Business Week, declared in October 1999, “The old market verities apply: As concentration increases, it’s easier for remaining players to raise prices. In the copper industry, the prospect of consolidation helped drive up future prices by more than 20% since the middle of June.” What is now the greatest merger wave in capitalist history is rapidly transforming the global competitive environment. Already by the mid-1990s, the largest three hundred corporations in the world accounted for 70 percent of foreign direct investment and 25 percent of world capital assets. The top ten telecommunications firms now control 86 percent of a 262 billion dollar world market—and analysts expect the number of giant telecommunications firms controlling that world market to be halved early in this century. The rivalry between giant firms is being intensified at the transnational level as corporations seek to carve out larger and larger world market territories. The underpinnings of the current massive merger wave can be understood much more fully by examining the way they are financed. Although it is still frequently claimed in textbook economics that the main purpose of both the issue of new stock and borrowing by nonfinancial corporations is to finance investment in productive capacity, this is far from the case. In the 1980s, U.S. corporations borrowed heavily, not in order to finance real investment (which they continued to pay for out of gross profits), but for the purpose of stock buybacks (to boost the value of their shares) and takeovers. This borrowing was thus geared to the speculative purchase of existing assets with the expectation of expanding capital gains, and, in the case of takeovers, the creation of new monopolistic positions through “synergy.” In the 1990s, the diversion of corporate funds to Wall Street has intensified, but firms have relied on their own profits increasingly for this purpose rather than debt (though also continued to borrow as a defensive strategy against hostile takeovers). The speculative bubble associated with the internet and the Nasdaq in particular had created such an out-of-this-world situation, by the opening month of 2000, that the digital giant America Online (AOL) was able to purchase Time Warner, in a 183 billion-dollar deal that constituted the biggest (though still pending) merger in all of history. And AOL was able to do so despite the fact that it had only 20 percent the annual revenue and 15 percent of the workforce of Time Warner. Increasingly, we are faced with a world economy governed by financial speculation and the attempt to create global monopoly (or oligopoly) power—led by media and telecommunications and fanning out through all sectors of production. In this shift to a more global playing field, there is the likelihood of increasing currency and trade wars between capitalist blocs, even as core capital attempts to head off trouble by establishing new rule-making bodies at the international level, such as the World Trade Organization (WTO). Real power, however, lies not with such transnational rule-making bodies (which can never become an “international of capital”), but with the actual states and corporations. The United States and World Competition In this age of globally expanding circuits of capital, the United States has for the most part been able to set the pace. The source of this U.S. advantage resides not simply in the special role of the dollar; its military power; the ability of its corporations to position themselves strategically in global markets so as to obtain spectacular mark-ups (evidence of monopoly power); or its position as a haven for foreign capital—but also in the low rate of increase in unit labor costs (i.e., nominal hourly compensation per unit of output) of U.S. manufacturing relative to manufacturing in the other capitalist states. This can be seen in Table 1 (below). With exception of the United States and Canada, all of the G-7 countries had double-digit rates of increase in exchange-rate adjusted unit labor costs from 1985 to 1990. Moreover, in the 1990 to 1998 period, the exchange-rate adjusted rate of increase in unit labor costs in the United States remained lower than those of its two biggest competitors: Japan and Germany. Average Annual Rates of Change of Unit Labor Costs in Manufacturing, G7 Countries: U.S. Dollar Basis 1985-1990 1990-1998 U.S. 1.6 0.2 Japan 10.8 1.3 Germany (West) 15.9 0.3 France 11.6 -2.0 United Kingdom 11.4 1.8 Italy 14.4 -2.3 Canada 7.1 -2.3 Source: United States Department of Labor, Bureau of Labor Statistics, “International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends, 1998,” News, August 27, 1991, Table B, p. 11. The employment compensation component of unit labor costs includes both direct and indirect payments to employees. Direct payments include wages and salaries (also encompassing compensation to corporate executives), vacation pay, tips, bonuses, etc. Indirect payments include employer contributions to legally required insurance programs and contractual and private benefit plans, including social insurance funds, private pensions, and health and welfare plans, and workers’ compensation for injuries. Unit labor costs are a more comprehensive indicator of international competitiveness than labor productivity growth rates, which they partly reflect. Hence, it is the relatively slow growth of unit labor costs in the United States, Bureau of Labor Statistics analysts tell us, that point to the decisive advantage gained by the United States in overall competitive position over its major competitors in the period after 1985. There can be little doubt about where the ultimate source of this advantage lies: in the effectiveness of the class struggle against labor in the United States. According to one study, real after-tax hourly compensation of production workers in the U.S. economy dropped by almost 14 percent between 1977 and 1995. The present expansion has been accompanied by increasing attacks on unions; growth of “nonstandard employment” (in which part-time and other contingent employment constitutes a bigger and bigger portion of total employment); longer work hours; and cutbacks in state spending for human welfare. In this battle to lower the floor, U.S. capital has played the leading role and its major competitors are increasingly moving in the same direction. The same general process taking place in the U.S. economy is occurring globally on a much larger, more polarized scale. What Harry Magdoff noted in The Age of Imperialism as far back as 1969 is even more apparent today (though it now applies to the giant firms of numerous states): “It is the professed goal of these international firms [U.S. multinationals] to obtain the lowest unit production costs on a world-wide basis. It is also their aim, though not necessarily openly stated, to come out on top in the merger movement in the European Common Market and to control as large a share of the world market as they do of the United States market.” In fact there is an “essential oneness” to the U.S. economy and its foreign economic policy. According to the dominant corporate consensus, the struggle against domestic labor is at one with the struggle with other capitalist blocs, and with the struggle against already superexploited third-world labor. In each and every case, the goal is a narrow pursuit of low production costs, widening profit margins, increased capital gains, and global monopoly power—at the expense of all other interests and values. It goes without saying that this “essential oneness” in the accumulation drive of the system at all levels at the beginning of the twenty-first century conceals its own internal antagonisms. The anti-WTO protests in Seattle may signal the fact that the “party” for capital at this historical juncture is nearly over—in more ways than one. Notes
2000-04-01T00:00:00
2000/04/01
https://monthlyreview.org/2000/04/01/monopoly-capital-at-the-turn-of-the-millennium/
[ { "date": "2000/04/01", "position": 96, "query": "market concentration and monopolies inflation rate" }, { "date": "2000/04/01", "position": 96, "query": "market concentration and monopolies inflation rate" }, { "date": "2000/04/01", "position": 78, "query": "market concentration and monopolies inflation rate" } ]
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Call for harmonisation of white- and blue-collar status - Eurofound
Call for harmonisation of white- and blue-collar status
https://www.eurofound.europa.eu
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Only in 1922 was a law on employment contracts for white-collar workers passed, characterised by longer notice periods on termination of ...
In March 2000, a group of Belgian and foreign labour law experts and "opinion-formers" issued a call for the abolition of discriminatory differences between blue-collar and white-collar workers, and the creation of a unified employee status for all within the next five years. The call brought strong reactions from the social partners. Belgium is one of the last countries in western Europe whose employment law makes distinctions between those who work with their hands (blue-collar or manual workers) and those who perform "brainwork" (white-collar or non-manual workers) The legal differences date back as far as the insurrections of 1886, which led to Belgium's first employment laws. The first law on employment contracts (1900) did not include white-collar workers, who at the time were relatively few in number and tended to be well taken care of by employers, which saw them as close collaborators. Only in 1922 was a law on employment contracts for white-collar workers passed, characterised by longer notice periods on termination of contract, and better income and job security compared with their blue-collar counterparts. The differences in employment status are a legacy of the earlier years of the industrial era, when the differences between "manual" and "intellectual" work were obvious. Today, technological developments and extensive automation have in many cases changed the task content of manual jobs, to such a degree that it is hard to distinguish them from white-collar jobs - an example being monitoring of the production process. However, differences in status persist. Discriminatory provisions At present, the differences in employment status still result in less favourable conditions and employment protection for blue-collar workers. The main legal differences between blue- and white-collar statuses relate to: notice periods. Blue-collar workers have shorter notice periods and thus lower compensation in the event of dismissal. Indeed, Belgium has the shortest notice periods for blue-collar workers in the EU, and has been criticised by the Council of Europe on this point. On the other hand, notice periods for white-collar workers are among the longest in the EU; on this point. On the other hand, notice periods for white-collar workers are among the longest in the EU; income security in the event of sickness. There is no guaranteed monthly pay for blue-collar workers. Only the first two weeks of sickness are paid by the employer, whereafter the blue-collar worker must falls back on lower sickness benefits. White-collar workers have at least one month of guaranteed pay; "waiting day". In most sectors, the so-called "waiting day" for blue-collar workers still exists, whereby the employer is not required to pay the worker for the first day of incapacity for work because of sickness; and temporary unemployment. Fluctuations in demand can be countered by employers by placing part of their blue-collar workforce on "temporary unemployment" (ie lay-offs and short-time working). In this case, the workers receive a replacement allowance, supplemented by payments from the sectoral welfare fund. White-collar workers, by contrast, cannot be placed on temporary unemployment. Call for change On 10 March 2000, on the 100th anniversary of Belgium's first law on "employment contracts" for workpeople, a group of Belgian and foreign experts in labour law and of "opinion-formers" issued a call for the abolition of the discriminatory differences in status between blue- and white-collar workers. Furthermore, a unified employee status for all should be put in place within the next five years. The call was launched in the leading newspaper De Standaard. The subscribers to the manifesto demand that the government put an end to the current situation, which is considered discriminatory, out-of-date and discouraging. The initiator of the manifesto, Professor Roger Blanpain of the Catholic University of Louvain (KUL), also points to the more indirect social consequences of the distinction, stating that even though nowadays production processes require thinking and creativity at all levels, half of society's employees are still stuck with the label of "non-thinking operatives". Professor Blanpain considers the distinction between blue- and white-collar workers as socially perverse, asking how a society can continue to function if it locks half of its employees into a second-rate role. Against this background, it is hardly surprising that craftworkers are not being replaced by youngsters, says Professor Blanpain. The government's position With the explicit demand to establish a unified status within the next five years, the subscribers to the manifesto refer to a ruling by the German Federal Constitutional Court. This Court declared the distinction in Germany between blue- and white-collar employees to be "discriminatory" and "unconstitutional". The German government was given five years to rectify the situation, a task that was successfully fulfilled. In 1993, the Belgian Court of Arbitration declared that the distinction between blue- and white-collar workers could "hardly be called objective and reasonable". Nevertheless, the Court stated that efforts by the government for a gradual reduction of differences would be sufficient. So far, the current "purple-green" coalition government (made up of liberals, socialists and environmentalists) has not taken any initiative in this matter. In the government's July 1999 coalition agreement, exactly one sentence is devoted to the issue: "As in most European countries, it is desirable that certain modalities of employment status – which have been inherited from the industrial society – converge gradually in order to get rid of the existing discriminations." This rather moderate declaration of intent considers a change in status as desirable, and not as a necessity. Moreover, it speaks of the convergence of existing statuses rather then a unified status. In a reaction to the March 2000 manifesto, the socialist Minister of Employment and Labour, Laurette Onkelinx, has confirmed this government policy. She approves the underlying philosophy of the document but simultaneously makes clear that she favours proceeding in stages in order to achieve significant progress in the matter of convergence of statuses. Structural obstacles Whereas in most European countries the differences between blue- and white-collar workers faded in the 1950s and 1960s, they are still present in Belgium (and in a few other countries, such as Austria- AT9906153N). To a great extent, this can be attributed to the characteristics of the Belgian system of collective bargaining. The whole industrial relations structure is established along the lines of the distinction between blue- and white-collar workers. For example: blue- and white-collar workers have different joint committee s (the bipartite bodies at sectoral level in which wage and working conditions are determined); different collective agreements are concluded; trade union confederations have different central organisations for blue- and white-collar workers; and different labour courts are in place. In other words, a strong institutional framework has been established along the lines of the distinction between blue- and white-collar workers. According to Professor Blanpain, the conservative attitude of the social partners lies at the root of preservation of the blue-collar/white-collar distinction. Priority is given to the institutions rather than to the interests of the employees, he states. Professor Blanpain's analysis is arguably partly correct. Nevertheless, it cannot be denied that a number efforts to rectify the situation have been made by the social partners over the past few years. In some sectors, measures have been taken to bring closer the statuses of the two categories of employees, and progress has been made especially with respect to notice periods. The issue appeared on the national agenda when the government and the social partners made arrangements for the execution of the intersectoral agreement covering 1999-2000 (BE9811252F). Trade unions and employers' organisations agreed on a gradual doubling of notice periods for blue-collar workers in sectors where no sectoral agreements concerning this matter exist. Reactions of the social partners The Federation of Belgian Enterprises (Fédération des Entreprises de Belgique/Verbond van Belgische Ondernemingen, FEB/VBO), Belgium's largest employers' organisation, is of the opinion that the "sloganeering language" used by the experts in their manifesto is in appropriate when it comes to eliminating the differences between blue- and white-collar statuses. According to Pieter Timmermans, director general of FEB/VBO, the harmonisation of statuses is a complex matter, will require time and is unacceptable for the employers if it results in an increase of labour costs. For the employers, the introduction of a unified status cannot entail that the most expensive regulations and agreements pertaining to one of the two categories of employees become the standard for all. According to Mr Timmermans, a crucial question is whether trade unions will be prepared to accept lower notice periods for white-collar workers. The trade unions agree with the view that the distinction between blue- and white-collar workers is outdated and discriminating. A harmonisation of statuses is desirable but should be seen as a gradual process to be negotiated, rather than something that can be imposed at short notice from the top, in the form of a law. Furthermore, the trade unions vigorously resist the possibility of a downward levelling of white-collar status, as suggested by the employers' organisation. For the unions, the status of the white-collar worker remains the reference point, and it is out of the question that this status be downgraded. The trade unions dismiss Professor Blanpain's imputation that union structures are one of the reasons why the distinction between blue- and white-collar workers still exists. Michel Nollet, president of the socialist Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond,FGTB/ABVV), refers to the progress made in the matter of notice periods during the most recent negotiations. Marc Leemans, national secretary of the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) says that union structures evolve, pointing to the close cooperation that already exists between central organisations for blue- and white-collar workers in some sectors during negotiations. According to Mr Leemans, an imposed restructuring from the top is bound to fail. In contrast with its socialist and christian counterparts, the Federation of Liberal Trade Unions of Belgium (Centrale Générale des Syndicaux Libéraux de Belgique/Algemene Centrale der Liberale Vakbonden van België,CGSLB/ACLVB) has no different central organisations for blue- and white-collar workers. It considers that the differences in status have been made obsolete by socio-economic and technological developments. Nevertheless, according to CGSLB/ACLVB, discussion on the matter should remain within the competence of the social partners. Commentary In a rather quiet period in the run-up towards the next round of workplace social elections of employee representatives (to be held in May 2000 - BE0001302N), the publication of the manifesto has provoked tumult in the camp of the social partners. The reactions to the document illustrate the sensitive character of the matter. Although slight progress has been registered at the sectoral level in terms of dismissal notice periods, a radical change that abolishes the discriminations and leads to a unified status seems far away. It looks like the institutional framework built around the "handworker/brainworker" distinction – in place now for over a century - will not be easily restructured. With respect to this restructuring, the experts' document has a major shortcoming: it does not say how unification of statuses is to be carried out at the concrete level. (Jurgen Oste, VUB/TESA)
2000-03-27T00:00:00
https://www.eurofound.europa.eu/en/resources/article/2000/call-harmonisation-white-and-blue-collar-status
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Diplomacy as an instrument of good governance - Diplo Resource
Diplomacy as an instrument of good governance
https://www.diplomacy.edu
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A partial and balanced approach is an answer to the new geopolitical and economic realities. According to the political stereotypes of the Cold War, diplomats ...
Introduction I wish to begin my statement be expressing my deep gratitude to the Mediterranean Academy of Diplomatic studies for convening this Conference on Modern Diplomacy. For the first time top specialists from different countries are gathered to discuss, in all aspects, diplomacy as an instrument of international communication and negotiation. It is not by chance that Malta has initiated this meeting. For all who are involved in international politics, this country has been associated with very successful diplomacy since the first days of its independence in 1964. The handwriting of Maltese diplomacy can be clearly seen in the activities of the United Nations and the Organisation for Security and Co-operation in Europe, in promoting regional co-operation in the Mediterranean. Our conference is a most timely event. Each time a major transformation in the international system occurs, the role of diplomacy in world politics is revised. This issue was on the international agenda at the beginning of the twentieth century, and now, on the threshold of the new millennium, the debate reoccurs. The exchange of views among the participants will help to better understand what should be the purpose and the method of diplomacy in the age of global transformation. The efforts of the international community to find diplomatic solutions to the present Iraqi crisis adjoin a supplementary flavour to our conference. New Challenges One hundred years ago the question of the future of diplomacy was raised as a result of technological progress – the invention of the radio and telegraph and the intervention of public into the domain of foreign policy. The first factor brought the apprehension that diplomats would become “honorary mailmen” and the second raised the issue of open diplomacy. However, the role of diplomacy in the twentieth century has not been restricted by these two factors. The functioning of diplomacy is influenced by a complicated combination of different interrelated factors and I would like to start with a brief analysis of their impact on the evolution of diplomacy. To begin with, there is a set of political factors. During most of the twentieth century, two world wars, the Cold War, the rivalry of two super powers, the ideologization of international affairs and military confrontation have made diplomacy a subsidiary instrument of power politics and ideology. As a result, diplomacy has very often executed the “dance of death.” The end of the Cold War has radically changed the international political scene. Moreover, today we are facing the shift of the civilizational paradigm, which affects not only the major units of world polities – the states – but which also brings new actors into the forefront of international relations. The major political factor influencing diplomacy is the relative decline of the role of the national governments. Today governments are facing stern competition from other actors. Private sector, religious groups, immigrants, media and other entities of the civil society are demanding from the government that their interests be taken into consideration and that they have a say in making and implementing foreign policy. People want to travel freely, to conduct business abroad or to be involved in various types of cultural exchange. Perhaps the most active “intruders” into the modern diplomacy from outside are non-governmental organisations (NGOs). This is particularly well seen from the UN viewpoint. For example, in Geneva there are currently about 1,400 NGOs officially registered with the UN Office. All of them are international, and have branches in at least two or more countries. Although their status is different from that of the diplomats, in practice they often participate in the diplomatic process, in particular in the promotion and discussion of such issues as human rights and environmental protection. Nowadays, international decisions are more often shaped according to the opinions of the NGOs. Gradually they are expanding the sphere of their influence. Last year NGOs prevented the adoption of the Convention on the Copyright Law in Electronic Media which was prepared by the International Telecommunications Union. Perhaps the most vivid example of their influence is the world-wide campaign to ban anti-personnel land-mines which led to the signature in Ottawa last December of the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Antipersonnel Mines. Curiously, not only NGOs but legislative branches of the states themselves are contributing to this diplomatic process. The parliamentarians of the world have successfully set up a structure of global and regional interaction and are now claiming a role in diplomatic meetings which was traditionally reserved for the executive branch. An important aspect of the “degovernmentalization” of foreign affairs is the growing involvement in the international interactions of local or provincial authorities. I had an opportunity to observe this phenomenon on numerous occasions. For example, it is not uncommon for the heads of a local government to visit a UN agency because they wish to participate in its programmes directly rather than through the national government. A few years ago this was difficult to imagine. During the conference of the mayors of the Mediterranean cities in Barcelona, many recognised that they often have more close economic or cultural ties with their partners across the sea than with their national capitals. Many big cities and provinces have enough resources not just to influence the national governments but also to actually maintain their own “diplomatic” agencies. The immediate implication of this development for the diplomatic practitioners is that now, in addition to their colleagues representing formally recognised states, they also have to deal with numerous other non-state counterparts who conduct their own “foreign policy.” On the macro level, one of the major developments is the proliferation of multinational institutions and regional and subregional organisations. The EU, APEC, ASEAN, CIS, NAFTA, – this is just a short list of the most well known transnational structures which claim part of their member’s sovereignty. The major motive behind their creation is the same as in the case of the increased activity of the local authorities – to facilitate cross-border co-operation and to weaken or eliminate restrictions imposed by the national states, such as customs tariffs. The second set of factors that makes the life of a modern diplomat increasingly difficult is of an economic nature. In general I would say that economic diplomacy is gradually taking over the traditional politics-oriented diplomacy. A lot has been written in recent years about the phenomenal growth of transnational economic interactions. Indeed, with the huge expansion of international trade, the power of private companies and the electronic transfer of money, private entrepreneurs and fund managers are eclipsing central bankers and finance ministers. Meanwhile the international economy is becoming more and more competitive. With the rapid development of the Pacific Rim countries, and the opening to the outside world of the economies of such huge states as China and Russia, the world market has expanded dramatically, but so has the number of economic actors. Governments everywhere are primarily concerned with maintaining the competitiveness of their economies. Accordingly, private economic decisions are now largely controlling political choices of the governments, and diplomats have to devote more time and energy than ever before to the creation of a favourable environment for trade and commerce. Last but not least, an important factor influencing modern diplomacy is the revolution in telecommunications. This is a big issue that deserves special attention. Of particular relevance to the diplomatic services are two technological developments – satellite broadcasting and digital networks including the Internet. I will not go into detail on the technological problem, as this afternoon we will have a special session on this issue. I would like just to give you a few examples of the use of modern technology at the United Nations. One of the functions of the diplomatic missions accredited to UNOG is to collect UN documents and send them to their Foreign Ministries or other government agencies in their capitals. A few years ago UNOG introduced an electronic system of document distribution. It is no longer necessary for the missions’ staff to collect documents from the Palais des Nations – they can obtain them via computer connection without leaving their offices. Now we are about to introduce another innovation. Soon the documents database will be connected to the Internet. Accordingly, the Foreign Ministries will be able to retrieve the documents they need, directly bypassing the missions. In fact, some Foreign Ministries have already subscribed to this new service and we have started to receive requests for particular documents. This could mean in particular that the missions are losing one of their functions. To take a further example, currently the senior managers at the UN are being provided with video-conferencing equipment. This technology is already widely used in many large companies. The cabinet meetings of the Secretary-General are held with the participation of Geneva, Vienna and Nairobi senior managers using video equipment. I understand that national foreign services are also experimenting with this kind of facility. In future we could easily imagine a situation where presidents, prime ministers or foreign ministers would be able to hold direct instantaneous face-to-face communication with each other, in addition to simultaneous data transfer. The consequences of this technological development for the diplomatic services could be quite significant. How should the role of the embassies or the missions change in this environment? All this testifies to the increasing interdependence in the world. Now, problems which affect one part of the world’s population can spread very rapidly to the entire planet. Like passengers of Leonardo da Vinci’s ship, all of us – rich and poor, women and men, young and old, white and black – share a common destiny. In the words of Albert Einstein “the world is one or nothing.” The process of globalisation, which strengthens the “oneness” of the world is, at the same time, accompanied by the fragmentation and localisation by the growing gap between rich and poor nations. Moreover, this process is characterised by the acceleration of the pace of events. Time has become “compressed.” All these transformations bring new challenges for diplomacy on a global level: the maintenance of positive peace and comprehensive security, democratisation, the promotion of human rights, economic co-operation and sustainable development, facilitation of humanitarian actions, prevention of terrorism and criminal activity. Today diplomacy is called upon to help political and economic leaders to channel the global changes in an evolutionary, non-violent, democratic rule-based manner. One of its top priorities is facilitation of good governance, both on national and international levels. The prospect of good governance provides an opportunity for the renaissance of diplomacy which, throughout the centuries, played the role of an intermediary between governments and acquired a unique experience in this field. Now it has a chance to become an instrument of international governance. How can diplomacy cope with this new challenge? Diplomacy as an Instrument of Good Governance To begin with I should like to stress that for modern diplomacy, whose only asset is the software, it is important to maintain a balance between traditional innovations. Despite all the changes in the international environment the past experience of diplomacy is of great value and it is ultimately important to keep links in time. The classical texts on diplomacy of François De Calliers, Harold Nicolson, Ernest Sato and Jules Cambon are as useful reading for a diplomat today as they were a century ago. One of the major lessons in the history of diplomacy is that the personal factors continue to play a key role. As far back as in seventeenth century, a great Frenchman in diplomacy, François De Calliers wrote: “The good diplomat must have an observant mind, a gift of application which rejects being diverted by pleasures or frivolous amusements, a sound judgement which takes the measure of things as they are and which goes straight to the goal by the shortest and most natural paths without wandering into meaningless and endless refinements and subtleties. The diplomat must be quick, resourceful, a good listener, courteous and agreeable. Above all, the good negotiator must possess enough self-control to resist the longing to speak before he has thought out what he actually intends to say. He must have a calm nature, be able to suffer fools gladly, which is not always easy, and should not be given to drinking, gambling or any other fantasies. He should also have some knowledge of literature, science, mathematics, and law.” At the threshold of the twentieth century, another famous author, the British diplomat Ernest Sato, described diplomacy as an application of intellect and tact to conduct foreign affairs. In my view, a modern diplomat is discreet, practical, careful, and with a sense of responsibility. I also think that in modern diplomacy the feeling of momentum is of crucial importance. As a whole, diplomats are very good at preserving the traditions of their profession. However, there is a lot in the legacy of the past that diplomacy has to abandon. Unfortunately, despite changes of huge significance to diplomacy that have taken place in recent years, the mechanisms of traditional diplomacy have barely begun to adjust. The Cold War has gone out of diplomacy, but in many cases diplomatic behaviour remains loyal to it. This includes, among other things, thinking only in terms of power equilibrium. Methods of diplomacy are still strongly influenced by military thinking – diplomacy as the war by other means, or as a zero-sum game. To become an efficient tool of good global governance diplomacy needs first to overcome the stereotypes of ideology and military confrontation. Its task today is to search not for the balance of power, but for the balance of interest. The top priority today is to reinvigorate in full scope traditional methods of diplomacy – the search for compromise solutions. The all or nothing mentality no longer works. A partial and balanced approach is an answer to the new geopolitical and economic realities. According to the political stereotypes of the Cold War, diplomats of different countries are considered to be opponents, each trying to reach his goal at the expense of the other. No doubt, the primary mission of a diplomat is to protect the national interests of his country. However, we all have a common aim – good governance both on global and national levels. We all strive for a better world, a world without violence and poverty, a world that provides security and justice for all. Thus, diplomats must learn to co-operate without sacrificing the national interests of their countries. In many other professions one can witness the existence of a corporate spirit. Unfortunately it does not happen often among diplomats. However, such club relations could be of great help to each and all of them. The corporate spirit of the diplomatic community does not mean that corporatism should prevail over the national interest of the country which a diplomat represents. By articulating the national interests of his country the diplomat provides the possibility to better understand its position. This makes the country predictable in its international behaviour which is of supreme importance in our time of change. Attempts to please both a foreign government and his own government renders disservice to the diplomat. The international diplomatic partnership is now more feasible than before, in particular because of the gradual unification of the national styles of diplomacy. International organisations and multilateral diplomacy are effective “melting pots” of cultural differences. Diplomatic methods are becoming universal. However, national styles still exist and should be studied and taken into consideration in the practical diplomatic work. National style is difficult to define though it is an important ingredient of the art of diplomacy. But of course a national style should not be mixed up with an inappropriate behaviour when a so-called diplomat disregards local cultural, religious and specific features of other nations. Another stereotype concerns confidentiality in diplomacy. Diplomacy is often accused of too much secrecy and indeed, for centuries diplomacy was conducted entirely in private. The Cold War has tremendously strengthened this pattern of behaviour. However, in the world of openness and free information flows, the cult of diplomatic confidentiality looks rather archaic. Though every professional diplomat knows that in certain situations confidentiality is unavoidable, it does not mean that the profession requires him to keep quiet. Lack of openness and in particular misconstruing the truth is incompatible with modern diplomacy. This leads to the important problem of interaction between diplomacy and mass media which deserves particular attention nowadays. Multilateral Diplomacy All these observations are applicable to both bilateral and multilateral diplomacy. However, the latter has some specific problems. For me multilateral diplomacy is of particular interest and concern since I am involved in it on a daily basis. I would like to share with you some of these concerns and ideas on how multilateral diplomatic interaction can be improved. Multilateral diplomacy is often considered to be a type of superstructure over bilateral diplomacy. I think these are two sides of the same coin and none excludes the other. Interaction between bilateral and multilateral diplomacy creates a new pattern of political behaviour. A good example is the negotiation of a nuclear test ban. In the past test ban treaties were the result of bilateral Soviet-American negotiations. Only CTBT has been worked out at the Conference on Disarmament. Multilateralism has not excluded bilateralism or other types of negotiation. To use a modern technical analogy, I would say that bilateral negotiations are similar to using a mobile telephone, whilst multilateral negotiations resemble using the Internet. They can naturally complement each other. More than that, multilateral negotiations, despite their being time-consuming, are a very effective safeguard against hegemonistic and similar intentions. This has become more evident at the dawn of multilateral diplomacy. When the series of congresses which followed the treaty of Vienna of 1815 at last came to an end, the British Foreign Secretary, Canning, returning from conferences, was said to have praised a state of normal bilateral diplomacy which he summed up as “each for himself and God for us all.” Undoubtedly multilateral diplomacy drastically limits the egoistical aspirations of the states. Although multilateral negotiations are basically similar to bilateral, a number of sophisticated methods and techniques have been developed in multilateralism to cope with extensive diplomatic interactions. In the United Nations and other multilateral fora there is an official hierarchy of committees and sub-committees and a semi-official system of groups of states formed on the basis of geographic or economic proximity. For example, there are the groups of African, Latin American and Arab States, the EU States or the Group of 77 developing countries which actually comprises more than one hundred states. Perhaps, the major peculiarity of the multilateral talks is the importance of the rules of procedure. When, as in the case of the United Nations, 185 delegations have to communicate with each other at the same time, there must be some rather clear and strict rules to maintain orderly interactions. As the well-known British historian, Harold Nicolson, once noted during a large international conference – the matters of organisation and procedure become no less important than the political issues. If poorly handled they can become a major disintegrating factor. The post-Cold War multilateralism is characterised by more complex agendas of conferences and negotiations with larger numbers of issues and the growing involvement of experts, citizens groups and NGOs. Multilateral diplomacy is trying to adapt to these new conditions. However, this process is painfully slow, Many aspects of multilateral diplomacy still need to be revised, starting with procedural and methodological issues. First of all there should be a clear line of distinction between negotiations and treaty-making. The process of multilateral negotiations consists of two stages: exploratory, as the initial stage, and treaty-making as the highest stage. The latter could be subdivided into the definition of parameters of a future agreement and the working out of it. Of course, the division is conditional. There is no Berlin Wall between the different stages. Bearing in mind this simple structure, it is not difficult to build the negotiations process in such a way that the result is achieved quickly and minimal resources are used. Unfortunately in some negotiation fora, the participants confuse the different stages and throw the whole process into disorder. Such negotiations may last for years and consist of endless positional statements. One of the favourite negotiation methods during the Cold War was the linkage of unrelated issues. This was a rough way of forcing the counterpart to make concessions. Though the international environment has drastically changed, this method is still in use today. Modern diplomacy needs the opposite approach. Compromise requires what I call constructive parallelism in all areas of negotiation, which presupposes that progress in one area creates the opportunity for advancement in other directions. Compromise is neither a capitulation nor a sign of weakness. The art of compromise is a concession in secondary matters, not in principles. It should be noted, however, that not everything depends on the negotiators. If there is no political will even the best negotiator cannot do much. There are a lot of debates on the expansion of the conferences. In my view, the principal failures come not so much from the enlargement of fora, which sometimes provides positive results in the creation of open-ended structures, as from the nature of issues themselves and the absence of political will to find compromise solutions. In the field of structured multilateral diplomacy there is surprising resistance to innovation. The lack of flexibility on the part of the member states is a major problem with the UN reform. The reform programme announced recently by the United Nations’ Secretary-General, Mr. Kofi Annan, is quite radical and includes significant changes in the structure of the organisation, its functions and priorities. However, the changes adopted by the General Assembly concern only one UN body – the Secretariat. As far as the restructuring of other major bodies is concerned, the proposals of the Secretary-General are still under consideration. Meanwhile, changes in the major United Nations bodies are of critical importance. Multilateral fora, including the UN, are frequently criticised for being too slow, in particular when dealing with conflict situations. When one speaks of a multifaceted, multidimensional, broad approach to security, conflict threats, and the need for preventive actions, one implies that diplomacy comes cheaper than infantry battalions. Diplomats can be more effective, not in stopping aggression once it has occurred, but earlier, in coping with civil combat, frontier disputes and the danger which we see when people who are condemned by geography to live together are instructed by their leaders that it is their duty to hate and kill others. But it is true, if there is a role for international diplomacy, it has to move earlier and be better organised for preventive actions which undoubtedly strengthen the new role of multilateral institutions as a safety net for crisis and conflict. As for the role of multilateral institutions with regard to consensus building on policy issues, and setting norms and standards, it should be strengthened through increased attention to monitoring in all fields. Take for example, human rights. The commemoration of the fiftieth anniversary of the Universal Declaration needs a greater emphasis on practical implementation, which requires us all to be even more penetrating about the legal obligations. At the same time, diplomacy should not monopolise conflict prevention and solution. For example, the legal tools could be used more extensively. The International Court of Justice which was created precisely to help to resolve conflict situations is currently considering only nine cases, mainly territorial or commercial disputes. However, the court has a considerable potential in conflict settlement. Let’s take for example, the settlement by the court of the dispute between Hungary and Slovakia concerning the Gabcikovo-Nagymaros Project. At the beginning the conflict had obvious and dangerous ethnic overtones with heated polemic in the media. After the involvement of the court it was quickly transformed into a purely technical matter. My last observation concerns the interaction between global and regional structures. When international organisations are mushrooming and multilateralism is invading all walks of life, there is a need to set up a mutually supportive and reinforcing system of international organisation to develop complementarily among them. The UN can and should play a more active role as a facilitator among the regional structures; the time has come for the Security Council to read anew Chapter VIII of the UN Charter, written when only two regional structures, the OAS and the LAS existed. The United States Deputy Secretary of State, S. Talbott, was absolutely right when he stated that “regional co-operation is a positive force if and only if it enhances the positive aspect of global interdependence and combats the negative ones.” The UN is doing a lot to achieve this aim. The annual meeting of the Secretary-General with heads of regional organisations, tripartite meetings between the Director-General of UNOG, the Secretary-General of the OSCE and the Council of Europe are good examples. The United Nations has developed several forms of co-operation with regional structures. However, it is not enough. Everyone would agree that we are only at the beginning of the process. We have some way to go before establishing a coherent pattern of mutually beneficial co-operation between the United Nations and the panoply of institutions involved with regional affairs. Conclusions A few conclusions can be drawn from this overview. Firstly, since diplomacy is an instrument of good governance it should adjust itself to meet the new challenges, to become more relevant, open and agile, to modify its methods and to fully utilise opportunities offered by the technological revolution. So far the pace of its transformation has not always been adequate. Nevertheless, modern diplomacy, which requires a variety of skills, in particular familiarity with the art and science of negotiations, proves its ability to work in a new multicultural environment with different actors, including the civil society. I deeply believe that the flexibility, which was always the trademark of diplomacy, provides the hope that diplomacy will not only adapt to new challenges but will also be helpful both for states and other new actors on the international scene, in their efforts to create a better world for the twenty-first century.
1998-08-14T00:00:00
1998/08/14
https://www.diplomacy.edu/resource/diplomacy-as-an-instrument-of-good-governance/
[ { "date": "2023/04/01", "position": 47, "query": "geopolitics diplomacy wage distribution" }, { "date": "2024/01/01", "position": 48, "query": "geopolitics diplomacy wage distribution" } ]
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What is the Optimal Rate of Inflation? - San Francisco Fed
What is the Optimal Rate of Inflation?
https://www.frbsf.org
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Some say that the current level of inflation is acceptable, while others argue that inflation should be pushed toward zero. The Friedman Rule ...
FRBSF Economic Letter 1997-27 | September 19, 1997 Central banks are now placing greater emphasis on maintaining low inflation, and this raises the question: How low should inflation be? Some say that the current level of inflation is acceptable, while others argue that inflation should be pushed toward zero. Central banks are now placing greater emphasis on maintaining low inflation, and this raises the question: How low should inflation be? Some say that the current level of inflation is acceptable, while others argue that inflation should be pushed toward zero. There are a number of ways to think about this problem, and one approach focuses on conditions for the optimal quantity of money. This Economic Letter summarizes the lessons which this literature contains. The Friedman Rule Milton Friedman (1969) provided a simple rule for determining the optimal rate of inflation. He started with the observation that money provides valuable services, as it makes it easier and more convenient for consumers to execute transactions. For example, while many establishments accept both money and credit cards as payment for goods and services, others accept only cash. A consumer could probably get by with credit cards alone, but this would entail spending more time seeking out establishments that accept them. Having some money in one’s pocket saves the time and inconvenience of doing so. While money is useful for carrying out transactions, it is also costly to hold. Monetary instruments generally earn less interest than securities such as Treasury bills. In fact, some forms of money, such as currency, earn no interest at all. The decision to hold more money means investing less in securities that pay more interest, and the cost of holding money depends on how much interest income is forgone. In order to decide how much money to hold, consumers must trade off the benefits of ease and convenience in carrying out transactions against the cost in terms of forgone interest earnings. In the end, people strike a balance between the two factors, holding more money when the cost is low and less when it is high. But as long as monetary instruments pay less interest than other securities, money will be costly to hold and consumers will have an incentive to economize on its use. But economizing on money is somewhat wasteful from society’s point of view. For while money is costly to hold, it is essentially costless for central banks to produce. Thus, by increasing the quantity of real balances (i.e., the nominal quantity of money divided by the price level), the central bank could make everyone better off at no cost to itself. That is, consumers would benefit from additional real balances because they would make it more convenient to carry out transactions, and it would cost the central bank nothing to provide this service. Robert Lucas (1987) writes that this is “one of the few legitimate ‘free lunches’ economics has discovered in 200 years of trying.” Pursuing this idea to its logical conclusion, Friedman argued that the optimal policy involves eliminating incentives to economize on the use of money. To do so, the central bank should seek to eliminate the difference between interest rates on monetary instruments and on other securities, because then money would be costless to hold. At the time Friedman wrote, money paid no interest, and the optimal policy called for setting nominal interest rates on bonds equal to zero. To a first approximation, the nominal interest rate equals the real interest rate plus expected inflation. To set the nominal interest rate to zero, it follows that the inflation rate must equal minus the real interest rate. If the latter were around 2 to 3%, Friedman’s arguments suggest that the central bank should seek to deflate at a rate of 2 to 3%. This would involve reducing the nominal quantity of money, but this would fall at a slower rate than the price level, and the quantity of real balances would increase. An alternative way to eliminate the interest differential between money and bonds would be to pay interest on money. While monetary instruments such as checkable deposits now earn interest, narrow measures such as currency do not, and it is difficult to imagine a low-cost way to begin paying interest on cash. But since currency is still essential for some purchases, it would still be optimal for the central bank to make it costless to hold. And since no interest is paid on currency, the Friedman rule carries through. Seignorage and Other Taxes Edmund Phelps (1973) criticized the Friedman rule on the grounds that it ignores considerations related to taxation. Phelps pointed out that inflation is a source of tax revenue for the government and that if inflation were reduced other taxes would have to be increased in order to replace the lost revenue. He also argued that some inflation would be desirable if distortions associated with inflation taxes were less costly than distortions associated with other taxes to which the government might resort. Phelps’s argument raises a number of important issues. First, in what sense is inflation a source of tax revenue? The government can finance its purchases in three ways: by levying direct taxes, by borrowing from the public, and by printing money. When the government pays for goods and services with newly printed money, it increases the money supply, which raises the price level, and the increase in the price level diminishes the real value of pre-existing money held by the public. Thus, inflation works like a tax on people who hold money: the newly printed money enables the government to buy goods and services at the expense of everyone who held pre-exisiting money balances, which fall in real value as a consequence of the increase in the price level. Revenue raised in this manner is called “seignorage.” If a central bank were to follow the Friedman rule, it would reduce inflation and force the government to rely on other taxes to pay its bills. Phelps argued that those taxes introduce distortions of their own, which may outweigh the benefits of reduced inflation. What is the nature of these distortions? To a first approximation, taxes on income, consumption, capital gains, and so on are levied on a proportional basis. Thus, for example, workers who earn higher levels of income pay higher income taxes. This distorts private economic decisions because it creates incentives to alter behavior in order to avoid the tax. For example, a tax on labor income raises the pre-tax wage that firms have to pay but lowers the after-tax wage that workers receive. An increase in the pre-tax wage reduces the quantity of labor that firms want to hire, and a fall in the after-tax wage reduces the quantity of labor that workers are willing to supply. The tax makes firms worse off because they pay higher wages but employ fewer workers and produce less output. The tax also makes workers worse off because they earn lower wages and work fewer hours. The government collects revenue from the tax and uses it to provide public goods and services, but the losses of those who pay the tax generally exceed the revenue collected. The difference between the losses of those who pay the tax and the revenue raised is known as the “deadweight loss” or “excess burden” of the tax, and one principle of public finance is that taxes should be administered in a way that minimizes these losses. The Friedman rule would certainly not be optimal if seignorage revenue were replaced by other tax increases that were even more distortionary. On the other hand, the fact that governments must choose among distortionary taxes does not necessarily invalidate the Friedman rule. The optimal mix depends on how distortionary the various taxes are. Phelps argued that at low rates of inflation, distortions associated with the inflation tax might be minor and that substituting other taxes for the inflation tax might result in greater deadweight losses. But contrary to Phelps’s argument, there are reasons to believe that the inflation tax is highly distortionary. One is related to the fact that money is an intermediate good rather than a final good. Intermediate goods are those goods which are used in the production of other goods and services, and taxes on these commodities are regarded as undesirable because they introduce two sets of distortions. On the one hand, they reduce production efficiency and increase the cost of producing final goods. And on the other, since this increase in cost is reflected in final goods prices, they distort final goods markets as well. Alternatively, the government could raise the same amount of revenue by taxing final goods directly, and while this would still distort final goods markets, it would not distort production efficiency. V.V. Chari, Lawrence Christiano, and Patrick Kehoe (1996) apply this principle to the inflation tax. They point out that money is intrinsically useless and should not be classified as a final good. Instead, since money is useful for facilitating transactions, it should be regarded as an intermediate good. This line of reasoning suggests that the inflation tax is really an indirect tax on other goods and that taxing those goods directly might be more efficient. In fact, Chari, et al., construct a number of theoretical examples in which this is so. In their examples, the Friedman rule remains optimal even though seignorage revenue must be replaced by distortionary taxes on labor income or consumption. That is, although the replacement taxes are distortionary, their calculations suggest that the inflation tax is even more distortionary. Furthermore, even when the Friedman rule isn’t strictly optimal, there are two reasons why it is likely to be nearly so. First, Robert Lucas (1994) estimates that even low rates of inflation involve substantial welfare costs. Second, seignorage accounts for only a small fraction of tax revenue raised in the U.S., usually less than 3%, and the adjustments in other taxes needed to replace lost seignorage revenue are likely to be minor. Taken together, these two facts suggest that the optimal inflation tax is not likely to be far from the Friedman rule. For example, Casey Mulligan and Xavier Sala-i-Martin (1997) estimate that taking replacement taxes into account raises the optimal inflation rate by perhaps as much as 1%. R. Anton Braun (1994) estimates that tax considerations raise the optimal inflation rate by between 1 and 6%. Taking the average of Braun’s estimates and subtracting a real interest rate of, say, 2.5% yields an optimal inflation rate of 1%. Thus, one can rationalize a goal of (approximate) price stability by appealing to optimal tax arguments. Other Considerations Other factors might further increase the optimal rate of inflation. For example, the underground economy uses cash intensively and is difficult to reach with other tax instruments. Some additional inflation might be desirable as a tax on activity in this sector. Similarly, much of the stock of U.S. currency is held abroad, and it might be desirable to collect seignorage from foreigners. Quantitative information on the amount of money held abroad or used in the underground economy is sparse, however, and it is difficult to say how much these factors might raise the optimal inflation rate. Timothy Cogley Senior Economist References Braun, R. Anton. 1994. “How Large Is the Optimal Inflation Tax?” Journal of Monetary Economics 34, pp. 201-214. Chari, V.V., Lawrence J. Christiano, and Patrick J. Kehoe. 1996. “Optimality of the Friedman Rule in Economies with Distorting Taxes.” Journal of Monetary Economics 37, pp. 203-223. Friedman, Milton. 1969. The Optimal Quantity of Money and Other Essays. Chicago: Aldine. Lucas, Robert E., Jr. 1987. Models of Business Cycles. Oxford: Basil Blackwell. _____. 1994 “On the Welfare Cost of Inflation.” CEPR Working Paper No. 394. Mulligan, Casey B., and Xavier X. Sala-i-Martin. 1997. “The Optimum Quantity of Money: Theory and Evidence.” NBER Working Paper No. 5954. Phelps, Edmund S. 1973. “Inflation in the Theory of Public Finance.” Scandinavian Journal of Economics 75, pp. 67-82.
1997-09-19T00:00:00
1997/09/19
https://www.frbsf.org/research-and-insights/publications/economic-letter/1997/09/what-is-the-optimal-rate-of-inflation
[ { "date": "1997/09/19", "position": 80, "query": "labor regulation inflation rate" }, { "date": "1997/09/19", "position": 75, "query": "labor regulation inflation rate" } ]
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Blue-Collar Workers, and Hands-On Investors - The New York Times
Blue-Collar Workers, and Hands-On Investors
https://www.nytimes.com
[ "David Barboza" ]
According to Federal Reserve statistics, the nonretirement investments of skilled blue-collar workers have grown faster than those of most other ...
Whether the notion that blue-collar workers are seldom active investors was ever true, it seems to be less true now. According to Federal Reserve statistics, the nonretirement investments of skilled blue-collar workers have grown faster than those of most other workers, at least in percentage terms. In 1992, the median value of the stocks owned by these workers' families was $4,000; for mutual funds, it was $5,100. By 1995, these sums had risen to $4,800 and $10,000 -- increases of 20 percent and 96 percent, respectively. But many of the most active blue-collar investors are hardly newcomers. ''I got into the market in February 1990,'' said Mr. Young, who, with his wife, Flip, has retirement or nonretirement investments in 13 mutual funds and a handful of individual companies. ''My brother was really big in the stock market, and then my wife was kind of encouraging me.'' Mr. Young, who lives in Chillicothe, Ohio, about 60 miles south of Columbus, grew up in a family with eight children and a father who, remembering the Depression, always stressed the need to save. ''My father said the first thousand you save will be the hardest,'' Mr. Young recalled. The Youngs are well past that point now. They invest about 16 percent of their pay -- Mrs. Young is a data base manager at Lockheed Martin -- in their respective 401(k) plans. They also funnel $300 a month each into various mutual funds. Although they would not reveal the size of their portfolio, they said that their account at the Vanguard Windsor fund, their largest, was worth about $60,000, and that their overall holdings have had average annual returns of 10 percent since 1991.
1997-04-06T00:00:00
1997/04/06
https://www.nytimes.com/1997/04/06/business/blue-collar-workers-and-hands-on-investors.html
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Technology and the Wage Structure - IDEAS/RePEc
Technology and the Wage Structure
https://ideas.repec.org
[ "Steven G. Allen", "Author", "Listed" ]
Wage differentials by industry in the full- year 1979 and 1989 Current Population Surveys are related to R&D intensity, usage of high-tech capital, recentness ...
This paper reports direct evidence on how recent changes in technology are related to changes in wage differentials by schooling, experience, and gender. Wage differentials by industry in the full- year 1979 and 1989 Current Population Surveys are related to R&D intensity, usage of high-tech capital, recentness of technology, growth in total factor productivity, and growth of the capital-labor ratio. Returns to schooling are larger in industries that are intensive in R&D and high-tech capital. Technology variables account for 30 percent of the increase in the wage gap between college and high school graduates. These are the items that most often cite the same works as this one and are cited by the same works as this one. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:5534. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1996-04-06T00:00:00
1996/04/06
https://ideas.repec.org/p/nbr/nberwo/5534.html
[ { "date": "2023/04/01", "position": 75, "query": "technology regulation wage distribution" }, { "date": "2023/10/01", "position": 76, "query": "technology regulation wage distribution" }, { "date": "2024/04/01", "position": 73, "query": "technology regulation wage distribution" }, { "date": "2025/01/01", "position": 75, "query": "technology regulation wage distribution" } ]
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Unemployment Duration and Labor Market Tightness
Unemployment Duration and Labor Market Tightness
https://www.chicagofed.org
[ "Daniel G. Sullivan" ]
The last recession was also unusual in that it was relatively severe for white-collar workers, but relatively mild for blue-collar workers. This is not to say ...
The following publication has been lightly reedited for spelling, grammar, and style to provide better searchability and an improved reading experience. No substantive changes impacting the data, analysis, or conclusions have been made. A PDF of the originally published version is available here. Since the last recession, average unemployment durations have been surprisingly high given levels of other labor market indicators. Recently, some have pointed to this as evidence that there is more labor market slack than is commonly believed.1 Their argument is that the long-term unemployed are willing to accept almost any job, even jobs with reduced wages. Thus, though there currently are relatively few unemployed workers, enough of them are sufficiently desperate that wage pressures are minimal. (A possible corollary is that inflation concerns have been exaggerated and monetary policy has been overly restrictive.) However, one could also argue that given any level of the unemployment rate, higher average durations should be associated with greater labor market tightness. This might be the case if many of the long-term unemployed lack the skills employers require and, consequently, exert less restraint on wages than the short-term unemployed. This Fed Letter examines these arguments and offers some preliminary time-series evidence on the significance of unemployment durations for current inflationary pressures. Unemployment durations Unemployment statistics are derived from the Current Population Survey (CPS), a monthly mini-census of U.S. households. Respondents aged 16 years and older are classified as either employed, unemployed, or out of the labor force. The unemployment rate is the fraction of the labor force that is unemployed, and the average unemployment duration is the mean number of weeks the unemployed have been looking for work. Most unemployment spells are relatively short, but an important minority are quite long. This skewness is reflected in the median duration being considerably shorter than the mean. For example, in December 1995 the mean duration was 16.2 weeks, but the median duration was only 8.2 weeks. Thus, the majority of the unemployed were looking for work significantly less than 16.2 weeks. However, those experiencing very long spells brought the mean up to 16.2. The fact that most unemployment spells are short is evidence that the labor market is more dynamic in the U.S. than Europe, where long spells are the norm. Even in the U.S., however, long spells account for a significant portion of unemployment. For instance, in December 1995, 16.4% of the unemployed had been out of work for more than 26 weeks. (This is still low compared to Europe, where typically more than 60% have been unemployed six months or more.) The longer workers are unemployed, the less likely they are to find work in the next month. There are two possible reasons for this. First, most of those who can find work easily do so quickly, leaving the remaining pool of unemployed workers weighted toward those facing special obstacles. Second, long-term unemployment may erode skills and demoralize workers, causing them to take even longer to find work. Finally, it is worth noting that average duration is a mean calculated over spells that are “in progress” at a given date. For two reasons, this differs from the expected duration of a completed spell. First, most of the unemployed will continue to be unemployed after they have been surveyed (which will not be accounted for in the calculation). Second, the calculation weights long spells more heavily than short. For instance, a two-week spell will at most be counted in the calculation one month, while a 26-week spell could be counted six months in a row. This second effect is stronger, so that a random worker becoming unemployed in December 1995 will on average find work in something closer to 14 weeks. Evolution over time Figure 1 plots the unemployment rate and average duration over the last 30 years. These series historically have moved up and down together over the business cycle, with average durations lagging the unemployment rate by a few months. Since the unemployment rate is itself a lagging indicator, it is not surprising that average unemployment duration is one of the last economic indicators to show improvement after a recession. 1. Unemployment rate and average unemployment duration Durations have been abnormally high relative to the unemployment rate since at least the 1990–91 recession (figure 1). Durations were higher during that recession than during the 1975 recession, even though the latter was much worse in terms of unemployment. Nearly five years after the end of the last recession, average durations remain near the highest levels experienced during the 1975 recession and are comparable to those prevailing in December 1984, when the economy was barely two years out of its worst postwar recession and the unemployment rate was 1.7 percentage points higher. Figure 1 shows that average unemployment durations recently have been falling quite rapidly. It is too soon to tell, however, whether durations are returning to a more normal level relative to unemployment. Figure 2 shows the flip side to high unemployment durations. That is, it plots the total unemployment rate along with the fraction of the labor force unemployed one month or less. The latter series also moves up and down with the unemployment rate. (In contrast to average duration, though, it slightly leads unemployment over the business cycle.) For the last two years, the fraction of the labor force newly unemployed has been as low as anytime since the 1960s. 2. Unemployment rate and rate of new unemployment Underlying forces During the last recession an unusually high fraction of layoffs were permanent rather than temporary. Since the transitions associated with permanent layoffs are obviously more difficult, this trend may have played a part in the rise of average durations. The last recession was also unusual in that it was relatively severe for white-collar workers, but relatively mild for blue-collar workers. This is not to say that white-collar workers had it worse than blue-collar workers, just that blue-collar unemployment rates exceeded white-collar rates by less than usual. At any point in time, white-collar workers are less likely to be unemployed. However, perhaps because they have more specialized skills, once unemployed they typically take longer to find appropriate reemployment. Thus, increased white-collar unemployment also may have contributed to higher durations. Longer-term trends also may have played a role in increasing durations. Indeed, if one looks closely at figure 1, the trend toward longer durations is visible well before 1990. For instance, while durations were substantially higher relative to unemployment following the last recession than following the 1981–82 recession, they were also somewhat higher relative to unemployment after the 1981–82 recession than after the 1975 recession. Juhn, Murphy, and Topel (1991) examined the trend toward higher male unemployment from 1967 to 1989 using individual workers’ CPS records.2 They found that increasing unemployment durations, which began to appear about 1970, accounted for much of the increased unemployment over the period. They also found that the increase in unemployment was most pronounced at the low end of the skill distribution. For instance, unemployment in the lowest decile of the wage distribution more than doubled, while it was essentially unchanged for those above the 60th percentile of the wage distribution. Juhn et al. interpreted the increase in unemployment (as well as a parallel increase in nonparticipation) for workers with lower skills as a labor supply response to an adverse shift in the demand for their skills. Consistent with this interpretation, the real wages of these workers declined precipitously over the 1970s and 1980s, while those above the 60th percentile of the wage distribution had approximately constant real wages. Labor market tightness The long unemployment durations experienced by many workers may represent an important economic problem, especially if the root cause is the failure of those workers to obtain skills necessary for long-term labor market success. It is less clear, however, what this phenomenon implies about inflationary pressures. The view that high durations imply the labor market is less tight than the unemployment rate would ordinarily suggest appears consistent with the first two possible explanations mentioned in the last section. Workers who have been permanently laid off are presumably more receptive to jobs entailing wage cuts than those who expect to be recalled to their old jobs. Similarly, white-collar and other workers who have lost jobs where specialized skills were important likely realize their need to show flexibility with regard to wages. Those who argue that high durations imply less inflationary pressure apparently believe inflation is largely determined by labor market conditions. This view is controversial because, in its extreme form, it ignores the role of money in determining inflation. However, even within such a framework, high durations could mean more inflationary pressure. First, the low rates of new unemployment, which are the corollary of high durations, may imply less fear of job loss and, hence, more aggressive wage demands. Second, the long-term unemployed are less likely to take jobs in a given month and thus may be less relevant to wage determination. Moreover, if the current rise in unemployment durations reflects a continuation of the long-term trends identified by Juhn et al., then many of those experiencing long unemployment spells may lack the skills demanded by prospective employers. Thus, they may be less relevant for the determination of wages than other unemployed workers and high durations may be taken as a sign of labor market weakness. Even if the reason for higher durations is the increased prevalence of permanent layoffs or job loss by white-collar workers, it may still be that, given the level of the unemployment rate, high durations signal tightness. Both of these phenomena could be signs that important structural change is occurring. Such change should tend to raise the “natural rate” of unemployment as workers are forced to make difficult transitions from one job to another. Because inflationary pressures should depend on the gap between the natural rate and actual unemployment, high durations would then signal greater labor market tightness. Time-series evidence Figure 3 displays forecasts of the rate of CPI inflation for 1996 based on two simple statistical models. Both are vector autoregessions that contain changes in the monthly rate of CPI inflation. In addition, the model whose forecast is shown in the first row contains changes in the unemployment rate, while the model generating the second row contains changes in the unemployment rate as well as changes in the level of average unemployment duration. 3. Forecasts of 1996 CPI Inflation Information Forecast 12/95-12/96 Changes in inflation and unemployment 2.0% Changes in inflation, unemployment, and unemployment durations 2.5% The detailed specification of these models follows that in King, Stock, and Watson (1995).3 They contain 12 lags of the monthly data and are estimated over the period from January 1974 to December 1995. The use of changes the unemployment rate and average duration is motivated by evidence that secular movements in these series are unrelated to inflation. Using only the recent history of inflation and unemployment yields an inflation forecast of 2% for 1996. However, when recent data on average unemployment durations are added to the model, the forecast rises to 2.5%. Thus, at least at the present time, accounting for unemployment durations increases estimates of inflationary pressures. This is consistent with the view that the long-term unemployed are less relevant to wage determination than other unemployed workers. Finally, it should be noted that these forecasts are intended only to illustrate the effect of adding information on unemployment durations to the analysis of inflationary pressures. They ignore other indicators such as capacity utilization, the gap between actual and potential GDP, commodities prices, and numerous monetary and financial variables that contain useful information about inflation. When these are factored into the analysis, Chicago Fed staff economists arrive at a 1996 inflation forecast of approximately 2.75%. Tracking Midwest manufacturing activity Manufacturing output indexes (1987=100) December Month ago Year ago MMI 142.1 142.7 141.4 IP 124.8 124.7 123.8 Motor vehicle production (millions, seasonally adj. annual rate) December Month ago Year ago Cars 6.1 6.1 6.8 Light trucks 5.4 5.4 5.4 Purchasing managers’ surveys: net % reporting production growth December Month ago Year ago MW 55.7 52.5 68.9 U.S. 47.0 46.1 59.4 Motor vehicle production (millions, seasonally adj. annual rate) In December 1995, Midwest manufacturing activity experienced its biggest decline since last March. After reaching its highest level of the year in September, the MMI began a slight trend downward. In contrast, the national measure of manufacturing activity was virtually flat in December and only slightly below its September peak. Other measures of manufacturing activity suggest more underlying strength to regional production. For example, purchasing managers’ surveys for Chicago, Milwaukee, and both the auto and nonauto portions of Detroit indicated improvements in production for December, while western Michigan showed contraction. Auto production, both nationally and regionally, actually increased slightly in December after being flat for two months. Notes 1 See, for example, Gene Epstein, “How low can it go?—Jobless rate hasn’t slid to optimum level yet,” Barron’s , September 25, 1995, p. 46. 2 Chinhui Juhn, Kevin Murphy, and Robert Topel, “Why has the natural rate of unemployment risen?” Brookings Papers on Economic Activity , Vol. 2, 1991, pp. 75–126. 3 Robert G. King, James H. Stock, and Mark W. Watson, “Temporal instability of the unemployment-inflation relationship,” Economic Perspectives , Federal Reserve Bank of Chicago, Vol. 19, No. 3, May/June 1995, pp. 2–12. Opinions expressed in this article are those of the author(s) and do not necessarily reflect the views of the Federal Reserve Bank of Chicago or the Federal Reserve System.
1996-03-10T00:00:00
1996/03/10
https://www.chicagofed.org/publications/chicago-fed-letter/1996/march-103
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Fixing Japan's White-Collar Economy: A Personal View
Fixing Japan’s White-Collar Economy: A Personal View
https://hbr.org
[ "Shintaro Hori" ]
The largest effort to upgrade worker skills has occurred in total quality control programs, whose biggest impact has been on blue-collar workers and engineers.
In August 1992, President Hiroshi Sato of TDK, the world’s largest manufacturer of magnetic tapes, sent a memo to 50 of his senior managers: “You will have to stand by at home as of the date you receive this letter.” The managers were promised 90% of their salaries until retirement age as compensation for not working.
1993-11-01T00:00:00
1993/11/01
https://hbr.org/1993/11/fixing-japans-white-collar-economy-a-personal-view
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The Effect of Unions on the Distribution of Wages - IDEAS/RePEc
The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?
https://ideas.repec.org
[ "David Card", "Author", "Listed" ]
Cross-sectional union wage gap estimates vary over the wage distribution, ranging from over 30 percent for lower wage workers to 10 percent for higher wage ...
This paper re-examines the connection between unions and wage inequality, focusing on three questions: (1) How does the union wage effect vary across the wage distribution? (2) What is the effect of unionism on the overall variance of wages at the end of the 1980s? (3) How much of the increase in the variance of wages over the 1970s and 1980s can be attributed to changes in the level and distribution of union coverage? Cross-sectional union wage gap estimates vary over the wage distribution, ranging from over 30 percent for lower wage workers to 10 percent for higher wage workers. Using a longitudinal estimation technique that accounts for misclassification errors in union status, I find that this variation represents a combination of a truly larger wage effect for lower-paid workers, and differential selection biases. The estimated effect of unions on the variance of wages in the late 1980s is relatively modest. Nevertheless, changes in the level and pattern of unionism--particularly the decline of unions among lower wage workers -- have been an important component of the growth in wage inequality. Changes in unionization account for one-fifth of the increase of the variance of adult male wages between 1973 and 1987. These are the items that most often cite the same works as this one and are cited by the same works as this one. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4195. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1992-10-06T00:00:00
1992/10/06
https://ideas.repec.org/p/nbr/nberwo/4195.html
[ { "date": "2024/04/01", "position": 43, "query": "worker organization labor unions wage distribution" } ]
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White-and-blue-collar jobs in the recent recession and recovery
White-and-blue-collar jobs in the recent recession and recovery: who's singing the blues?
https://ideas.repec.org
[ "Erica L. Groshen", "Donald R. Williams", "Author", "Listed" ]
An investigation of the 1990-91 recession's impact on blue- versus white-collar workers, showing that although blue-collar workers bore the brunt of the ...
An investigation of the 1990-91 recession's impact on blue- versus white-collar workers, showing that although blue-collar workers bore the brunt of the downturn, white-collar employment growth was unusually slow by historical standards. These are the items that most often cite the same works as this one and are cited by the same works as this one. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcer:y:1992:i:qiv:p:2-12:n:v.28no.4. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: 4D Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbclus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1992-08-06T00:00:00
1992/08/06
https://ideas.repec.org/a/fip/fedcer/y1992iqivp2-12nv.28no.4.html
[ { "date": "2023/04/01", "position": 36, "query": "economic recession white collar workers" }, { "date": "2023/10/01", "position": 25, "query": "economic recession blue collar workers" }, { "date": "2023/10/01", "position": 39, "query": "economic recession white collar workers" }, { "date": "2024/04/01", "position": 35, "query": "economic recession white collar workers" }, { "date": "2024/07/01", "position": 41, "query": "economic recession white collar workers" }, { "date": "2024/10/01", "position": 29, "query": "economic recession blue collar workers" }, { "date": "2024/10/01", "position": 34, "query": "economic recession white collar workers" }, { "date": "2025/01/01", "position": 39, "query": "economic recession white collar workers" }, { "date": "2025/04/01", "position": 39, "query": "economic recession white collar workers" } ]
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White-and-blue-collar jobs in the recent recession and recovery
EconPapers: White-and-blue-collar jobs in the recent recession and recovery: who's singing the blues?
https://econpapers.repec.org
[ "Groshen", "Erica", "Williams", "Erica Lynn", "Donald R." ]
Abstract: An investigation of the 1990-91 recession's impact on blue- versus white-collar workers, showing that although blue-collar workers bore the brunt of ...
White-and-blue-collar jobs in the recent recession and recovery: who's singing the blues? Erica Groshen and Donald Williams Economic Review, 1992, vol. 28, issue Q IV, 2-12 Abstract: An investigation of the 1990-91 recession's impact on blue- versus white-collar workers, showing that although blue-collar workers bore the brunt of the downturn, white-collar employment growth was unusually slow by historical standards. Date: 1992 References: View references in EconPapers View complete reference list from CitEc Citations: Downloads: (external link) http://www.clevelandfed.org/Research/Review/1992/92-q4-groshen.pdf (text/html) Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.clevelandfed.org/Research/Review/1992/92-q4-groshen.pdf [301 Moved Permanently]--> https://www.clevelandfed.org/Research/Review/1992/92-q4-groshen.pdf [301 Moved Permanently]--> https://www.clevelandfed.org/research/review/1992/92-q4-groshen.pdf) https://fraser.stlouisfed.org/scribd/?toc_id=12031 ... t_page=3#scribd-open Related works: This item may be available elsewhere in EconPapers: Search for items with the same title. Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcer:y:1992:i:qiv:p:2-12:n:v.28no.4 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Economic Review from Federal Reserve Bank of Cleveland Contact information at EDIRC. Bibliographic data for series maintained by 4D Library ( ).
1992-08-06T00:00:00
1992/08/06
https://econpapers.repec.org/RePEc:fip:fedcer:y:1992:i:qiv:p:2-12:n:v.28no.4
[ { "date": "2023/10/01", "position": 62, "query": "economic recession blue collar workers" } ]
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US WHITE-COLLAR RECESSION OBSCURES FATE OF THE BLUES
US WHITE-COLLAR RECESSION OBSCURES FATE OF THE BLUES
https://www.afr.com
[ "Source", "The New York Times", "Luke Benedictus", "Bani Mcspedden", "Sally Patten", "Kate Hennessy", "Carrie Lafrenz" ]
For all the talk of a "white-collar" recession in the US, it is blue-collar workers who have been hardest hit by the economic slump, ...
For all the talk of a "white-collar" recession in the US, it is blue-collar workers who have been hardest hit by the economic slump, losing more jobs and enduring far higher rates of unemployment. Five times as many blue-collar jobs have evaporated and jobless rates are more than twice as severe. More and more, blue-collar workers are facing the harsh truth that, though the US economy will no doubt come back, their lost jobs are probably gone for good, given the relentless advance of automation and international competition. Loading...
1991-12-27T00:00:00
1991/12/27
https://www.afr.com/companies/us-white-collar-recession-obscures-fate-of-the-blues-19911227-k4p12
[ { "date": "1991/12/27", "position": 51, "query": "financial crisis stock exchange blue collar workers" }, { "date": "1991/12/27", "position": 61, "query": "financial crisis stock exchange white collar workers" } ]
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Accepting the Harsh Truth Of a Blue-Collar Recession
Accepting the Harsh Truth Of a Blue-Collar Recession
https://www.nytimes.com
[ "Steve Lohr" ]
Five times as many blue-collar jobs have evaporated, and jobless rates are more than twice as severe. More and more, blue-collar workers are ...
Mr. Miller worked for two months this fall for a nearby company that repairs industrial machinery. As a part-time worker, he was paid $4.50 an hour, with no benefits. But the weakening economy brought that job to an end in November, and his prospects are bleak. There is very little forging work left near Jackson these days. The few machinist jobs available in the region require applicants who can handle computer-controlled equipment, a skill Mr. Miller does not have. The auto parts industry, with more than 650,000 workers, is America's largest manufacturing employer. But with increasing competition from Japanese suppliers, which are building new factories in America and hiring young workers, "the domestic parts industry is where the next shakeout is going to be," said Sean McAlinden, a labor economist at the University of Michigan's Office for the Study of Automotive Transportation. "And there's no retraining solution for the older workers in that industry." A Union Carpenter, Trying to Scrape By During the 1980's real-estate boom, Ron Richnavsky, a 29-year-old carpenter from Harwinton, Conn., had all the work he could handle. A union carpenter, paid $17.50 an hour plus benefits, he made up to $50,000 a year. In 1988, he and his wife, Linda, bought a $135,000 four-bedroom house for themselves and their three daughters, Nicole, Amanda and Danielle. "At the time, I was making good money," he said. "We thought we could handle it." Mr. Richnavsky has had some work this year, but not nearly enough. He is about six months behind on his mortgage payments of $1,200 a month, and the bank is threatening to foreclose, he says. His wife makes $130 to $150 a week in her part-time job as a waitress. His unemployment benefits amount to $300 a week. "We can scrape through," he said, "as long as I don't pay the mortgage." Blinded by the 80's Like so many other Americans, Mr. Richnavsky admits that he got caught up in the prosperity of the 1980's, assumed it would continue and took on too much debt. "When times are good, you don't think," he said.
1991-12-25T00:00:00
1991/12/25
https://www.nytimes.com/1991/12/25/business/accepting-the-harsh-truth-of-a-blue-collar-recession.html
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Is this really a \\"white-collar recession\\"? - IDEAS/RePEc
Is this really a \\"white-collar recession\\"?
https://ideas.repec.org
[ "Randall W. Eberts", "Erica L. Groshen", "Author", "Listed" ]
An analysis of whether the economic downturn that began in mid-1990 hit white-collar workers disproportionately hard. The authors examine the issue from ...
An analysis of whether the economic downturn that began in mid-1990 hit white-collar workers disproportionately hard. The authors examine the issue from several perspectives and find overwhelming evidence to the contrary. Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcec:y:1991:i:mar15. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. We have no bibliographic references for this item. You can help adding them by using this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: 4D Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbclus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1991-08-06T00:00:00
1991/08/06
https://ideas.repec.org/a/fip/fedcec/y1991imar15.html
[ { "date": "2023/04/01", "position": 64, "query": "economic recession white collar workers" }, { "date": "2024/04/01", "position": 63, "query": "economic recession white collar workers" }, { "date": "2024/07/01", "position": 72, "query": "economic recession white collar workers" }, { "date": "2024/10/01", "position": 65, "query": "economic recession white collar workers" }, { "date": "2025/01/01", "position": 78, "query": "economic recession white collar workers" }, { "date": "2025/04/01", "position": 78, "query": "economic recession white collar workers" } ]
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Is This Really a "White-Collar Recession"?
Is This Really a "White-Collar Recession"?
https://www.clevelandfed.org
[ "Randall Eberts", "Erica Groshen", "Eberts", "Groshen", "Contributing Author" ]
economy is in the midst of a recession, but that this downturn is different from previous ones because it has hit white-collar workers ...
Until the National Bureau of Economic Research (the official arbiter of business cycles) decrees it, we cannot be certain that history will record the current economic downturn as a recession. Nonetheless, many economic analysts and media representatives have chosen not to wait for the official pronouncement, proclaiming not only that the US. economy is in the midst of a recession, but that this downturn is different from previous ones because it has hit white-collar workers disproportionately hard. While both issues provide interesting material for debate, this article investigates only whether we are indeed experiencing a white-collar downturn.
1991-03-15T00:00:00
1991/03/15
https://www.clevelandfed.org/publications/economic-commentary/1991/ec-19910315-is-this-really-a-white-collar-recession
[ { "date": "1991/03/15", "position": 58, "query": "economic recession white collar workers" }, { "date": "1991/03/15", "position": 68, "query": "economic recession white collar workers" }, { "date": "1991/03/15", "position": 57, "query": "economic recession white collar workers" }, { "date": "1991/03/15", "position": 74, "query": "economic recession white collar workers" }, { "date": "1991/03/15", "position": 58, "query": "economic recession white collar workers" }, { "date": "1991/03/15", "position": 69, "query": "economic recession white collar workers" }, { "date": "1991/03/15", "position": 69, "query": "economic recession white collar workers" } ]
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A comparison of blue- versus white-collar grievance behavior
A comparison of blue- versus white-collar grievance behavior: A field assessment
https://link.springer.com
[ "Owen", "School Of Business", "University Of Miami", "Miami", "Todor", "William D.", "College Of Administrative Science", "The Ohio State University", "Dalton", "Dan R." ]
Union organizing activity among white-collar employees.Personnel, 60, 18–27 ... How American workers view labor unions.Monthly Labor Review, 102, 23–31 ...
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1989-12-06T00:00:00
1989/12/06
https://link.springer.com/article/10.1007/BF01423359
[ { "date": "2023/01/01", "position": 81, "query": "worker organization labor unions blue collar workers" }, { "date": "2024/10/01", "position": 77, "query": "worker organization labor unions blue collar workers" } ]
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Four Steps to Forecast Total Market Demand
Four Steps to Forecast Total Market Demand
https://hbr.org
[ "William Barnett", "Is The Thomas M. Siebel Professor Of Business Leadership", "Strategy", "Organizations At The Graduate School Of Business", "Stanford University. His Research Focuses On Competition Among Organizations", "How Organizations", "Industries Evolve Globally. He Is Best Known For His Work On", "Red Queen Competition", "Where Firms Learn Competition", "So Become Stronger Competitors Over Time. Follow Him On Twitter" ]
It found that more than two-thirds of white-collar workers either did not require PCs in their jobs—actors and elevator operators, for instance—or were ...
is the Thomas M. Siebel Professor of Business Leadership, Strategy, and Organizations at the Graduate School of Business, Stanford University. His research focuses on competition among organizations and how organizations and industries evolve globally. He is best known for his work on “Red Queen Competition,” where firms learn from competition and so become stronger competitors over time. Follow him on Twitter @BarnettTalks
1988-07-01T00:00:00
1988/07/01
https://hbr.org/1988/07/four-steps-to-forecast-total-market-demand
[ { "date": "2023/01/01", "position": 37, "query": "market concentration and monopolies white collar workers" }, { "date": "2023/04/01", "position": 49, "query": "market concentration and monopolies blue collar workers" }, { "date": "2023/04/01", "position": 34, "query": "market concentration and monopolies white collar workers" }, { "date": "2023/07/01", "position": 36, "query": "market concentration and monopolies blue collar workers" }, { "date": "2023/07/01", "position": 32, "query": "market concentration and monopolies white collar workers" }, { "date": "2023/10/01", "position": 37, "query": "market concentration and monopolies white collar workers" }, { "date": "2024/01/01", "position": 35, "query": "market concentration and monopolies white collar workers" }, { "date": "2024/04/01", "position": 34, "query": "market concentration and monopolies white collar workers" }, { "date": "2024/07/01", "position": 36, "query": "market concentration and monopolies blue collar workers" }, { "date": "2024/10/01", "position": 36, "query": "market concentration and monopolies blue collar workers" }, { "date": "2024/10/01", "position": 34, "query": "market concentration and monopolies white collar workers" }, { "date": "2025/04/01", "position": 36, "query": "market concentration and monopolies blue collar workers" }, { "date": "2025/04/01", "position": 38, "query": "market concentration and monopolies white collar workers" } ]
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Paying dues to the union: A study of blue-collar workers in a right-to ...
Paying dues to the union: A study of blue-collar workers in a right-to-work environment
https://link.springer.com
[ "Jermier", "John M.", "University Of South Florida", "Cohen", "Cynthia Fryer", "Gaines", "Tampa", "John M. Jermier", "Cynthia Fryer Cohen", "Jeannie Gaines" ]
This study of 372 state government workers compares union dues-payers and non-dues-payers on a variety of personal, positional, economic, and noneconomic ...
Of the 39 states that permit some form of public sector collective bargaining, union security agreements are prohibited in 19. Employees may join and pay dues to the union representing them in these states but they are not required to do so. This study of 372 state government workers compares union dues-payers and non-dues-payers on a variety of personal, positional, economic, and noneconomic variables. Workers who were exposed to more physical danger and less noise were more likely to be dues-payers; higher seniority workers and skilled craftworkers were more likely to pay dues. Results suggest that union voting and union dues-paying have different antecedents. They also raise questions about the generalizability of previous dues-paying research to blue-collar settings. Holding a union card in a right-to-work environment seems to have little to do with the traditional collective pursuit of economic power.
1988-06-06T00:00:00
1988/06/06
https://link.springer.com/article/10.1007/BF02685239
[ { "date": "2023/01/01", "position": 36, "query": "worker organization labor unions blue collar workers" }, { "date": "2023/10/01", "position": 33, "query": "worker organization labor unions blue collar workers" }, { "date": "2024/04/01", "position": 32, "query": "worker organization labor unions blue collar workers" }, { "date": "2024/10/01", "position": 37, "query": "worker organization labor unions blue collar workers" } ]
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The Distribution of Wage Rates | SpringerLink
The Distribution of Wage Rates
https://link.springer.com
[ "Sattinger", "State University Of New York At Albany", "Department Of Economics", "Business Administration", "Washington Avenue", "Albany", "Ny", "Professor Dr. Michael Sattinger", "Search Author On", "Author Information" ]
Even for a group facing identical labor market conditions, the distribution of accepted wage rates will resemble neither the distribution of wage offers nor ...
The previous chapter develops one ingredient in the final distribution of earnings: the distribution of employment. This chapter develops the other ingredient, the distribution of wage offers facing the individual and the resulting distribution of accepted wage rates. Several important questions are introduced into the study of the distribution of earnings at this point. In very simple theories, the distribution of wage rates is related directly to the distribution of some individual characteristic, such as education, ability or experience. In more complex models, it arises from the assignment of workers to jobs in a deterministic model with full employment, in which differences in wage rates are related to trade-offs between product outputs or preferences in equilibrium. With job search, however, there are several intermediate steps. Even for a group facing identical labor market conditions, the distribution of accepted wage rates will resemble neither the distribution of wage offers nor the distribution of reservation wages for the group but will depend upon an interaction between the two.
1985-08-06T00:00:00
1985/08/06
https://link.springer.com/chapter/10.1007/978-3-642-70547-2_5
[ { "date": "2025/04/01", "position": 75, "query": "labor regulation wage distribution" } ]
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The Impact Of Inflation On Corporate Taxes And The Cash Flow
The Impact Of Inflation On Corporate Taxes And The Cash Flows Of Business
https://ideas.repec.org
[ "Glenn Jenkins", "Queen'S University", "Kingston", "On", "Canada", "Author", "Listed" ]
The purpose of this paper is to identify and measure the effects of inflation on corporation income taxes and on the net cash flows of business.
The purpose of this paper is to identify and measure the effects of inflation on corporation income taxes and on the net cash flows of business. Five ways in which inflation alters corporate taxable income are identified. The paper begins by showing how the use of historical costs rather than the replacement costs of assets in the calculation of depreciation will cause taxable income to be overstated. Taxable income is also overstated because taxation rules require the use of the first-in first-out pricing rule for measuring the cost of goods sold from inventories. They also require the inclusion in taxable income of the full nominal value of interest earned even though during a period of inflation much of the nominal interest earned is simply compensation for the fall in the real value of financial assets. The exclusion of the loss in the real value of cash balances from deductible expenses causes taxable income to be further overstated. Partially offsetting these effects on taxable income is the provision for the full deduction of interest expense, nominal interest rates tend to increase by approximately the same number of percentage points to compensate for the fall in the real value of the principal outstanding. Hence, the amount of the nominal interest paid may increase dramatically even though the real cost of funds might not be appreciably changed. Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:65. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. We have no bibliographic references for this item. You can help adding them by using this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1985-07-06T00:00:00
1985/07/06
https://ideas.repec.org/p/qed/dpaper/65.html
[ { "date": "2023/01/01", "position": 31, "query": "corporate taxes inflation rate" }, { "date": "2024/01/01", "position": 29, "query": "corporate taxes inflation rate" }, { "date": "2024/04/01", "position": 29, "query": "corporate taxes inflation rate" }, { "date": "2024/07/01", "position": 32, "query": "corporate taxes inflation rate" } ]
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Trade Unions, Market Concentration and Income Distribution i
Trade Unions, Market Concentration and Income Distribution in United States Manufacturing Industry
https://ideas.repec.org
[ "Henley", "Author", "Listed" ]
Conventional production theory suggests that the presence of a monopoly element on the supply side of a particular labour market may well raise wages but in the ...
The question of what effect if any trade unions have on the functional distribution of income is an old one. Conventional production theory suggests that the presence of a monopoly element on the supply side of a particular labour market may well raise wages but in the long run any factor substitution away from labour would have an ambiguous effect on the factor income distribution depending on the value of the elasticity of substitution. Distribution gains would only accrue to labour under conditions of inelastic factor substitutability (see, for example, Addison & Siebert 1979). A considerable body of econometric research (surveyed in King and regan 1976) has given general credence to the view that the elasticity of substitution between capital and labour, using cross sectional analysis, is equal to one across a large array of different industries. Adoption of this "stylised" fact leads to the conclusion that a rise in the price of labour would cause such a substitution from labour to capital as to leave the functional distribution unaffected. One might therefore conclude that trades unions can have little or no effect on income distribution. (This abstract was borrowed from another version of this item.) Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uwarer:269220. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. We have no bibliographic references for this item. You can help adding them by using this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/ . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1984-11-11T00:00:00
1984/11/11
https://ideas.repec.org/p/ags/uwarer/269220.html
[ { "date": "2023/10/01", "position": 38, "query": "market concentration and monopolies wage distribution" }, { "date": "2024/10/01", "position": 38, "query": "market concentration and monopolies wage distribution" } ]
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Artificial Intelligence, Employment, and Income | AI Magazine
Artificial Intelligence, Employment, and Income
https://ojs.aaai.org
[ "Nils J. Nilsson" ]
In this article we explore how AI is likely to affect employment and the distribution of income. We argue that AI will indeed reduce drastically the need of ...
Authors Nils J. Nilsson Abstract Artificial intelligence (AI) will have profound societal effects. It promises potential benefits (and may also pose risks) in education, defense, business, law and science. In this article we explore how AI is likely to affect employment and the distribution of income. We argue that AI will indeed reduce drastically the need of human toil. We also note that some people fear the automation of work by machines and the resulting of unemployment. Yet, since the majority of us probably would rather use our time for activities other than our present jobs, we ought thus to greet the work-eliminating consequences of AI enthusiastically. The paper discusses two reasons, one economic and one psychological, for this paradoxical apprehension. We conclude with discussion of problems of moving toward the kind of economy that will be enabled by developments in AI.
1984-06-15T00:00:00
https://ojs.aaai.org/aimagazine/index.php/aimagazine/article/view/433
[ { "date": "1984/06/15", "position": 44, "query": "artificial intelligence employment" }, { "date": "1984/06/15", "position": 45, "query": "artificial intelligence employment" } ]
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Monopoly, Plant, and Union Effects on Worker Wages - IDEAS/RePEc
Monopoly, Plant, and Union Effects on Worker Wages
https://ideas.repec.org
[ "John E. Kwoka Jr.", "Author", "Listed" ]
This paper examines the effects of industry concentration, plant size, and unionization on the wages of blue-collar manufacturing workers.
This paper examines the effects of industry concentration, plant size, and unionization on the wages of blue-collar manufacturing workers. The author points out that few previous wage studies have included all three of those variables or have employed data sufficiently detailed to test adequately their effect on wages. This study, using data primarily from the 1977 Quality of Employment Survey, demonstrates that concentration, plant size, and unionization all exercise significant and independent effects on wages. Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:36:y:1983:i:2:p:251-257. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. We have no bibliographic references for this item. You can help adding them by using this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1983-08-06T00:00:00
1983/08/06
https://ideas.repec.org/a/sae/ilrrev/v36y1983i2p251-257.html
[ { "date": "2023/04/01", "position": 26, "query": "market concentration and monopolies blue collar workers" }, { "date": "2023/07/01", "position": 22, "query": "market concentration and monopolies blue collar workers" }, { "date": "2024/07/01", "position": 22, "query": "market concentration and monopolies blue collar workers" }, { "date": "2024/10/01", "position": 22, "query": "market concentration and monopolies blue collar workers" }, { "date": "2025/04/01", "position": 22, "query": "market concentration and monopolies blue collar workers" } ]
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The Early History of White-Collar Unionism - SpringerLink
The Early History of White-Collar Unionism
https://link.springer.com
[ "Lockwood", "Roberts", "B. C.", "Loveridge", "Gennard", "David Lockwood", "Search Author On", "B. C. Roberts", "Ray Loveridge", "John Gennard" ]
Its history stands as a living refutation of the charge that blackcoated workers lack the necessary virility for a manly defence of their interests. The study ...
Of all the blackcoated unions that have emerged in the course of the present century, the RCA deserves special notice. Not only has it achieved a high degree of unionization, but its members have displayed a sense of allegiance to the Labour Movement which, going far beyond that of any other organized group of clerks, has in some respects even surpassed the class consciousness of traditional working-class unionism. Its history stands as a living refutation of the charge that blackcoated workers lack the necessary virility for a manly defence of their interests. The study of the development of trade unionism among railway clerks can only lead to a rejection of the common stereotype of the clerk, and to an awareness of the actual variations in class consciousness which that stereotype obscures.
1983-08-06T00:00:00
1983/08/06
https://link.springer.com/chapter/10.1007/978-1-349-17016-6_9
[ { "date": "2024/10/01", "position": 29, "query": "worker organization labor unions white collar workers" } ]
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White-Collar Union Character - SpringerLink
White-Collar Union Character
https://link.springer.com
[ "Strauss", "Blackburn", "R. M.", "Prandy", "Breain", "Coates", "Ellis", "Crompton", "George Strauss", "Search Author On" ]
White-collar workers present special problems both to unions and to managements. Unions ... White-Collar Workers and their Organizations. Palgrave Macmillan, ...
White-collar workers present special problems both to unions and to managements. Unions find it hard not only to organize but also to service a white-collar group. Managements, accustomed though they may be to dealing with organized factory groups, find white-collar unionism confusing and even threatening. What makes white-collar unions behave so differently?
1983-08-06T00:00:00
1983/08/06
https://link.springer.com/chapter/10.1007/978-1-349-17016-6_10
[ { "date": "2024/10/01", "position": 48, "query": "worker organization labor unions white collar workers" } ]
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Does the Capital Asset Pricing Model Work?
Does the Capital Asset Pricing Model Work?
https://hbr.org
[ "David W. Mullins" ]
CAPM, a theoretical representation of the behavior of financial markets, can be employed in estimating a company's cost of equity capital. Despite ...
Although its application continues to spark vigorous debate, modern financial theory is now applied as a matter of course to investment management. And increasingly, problems in corporate finance are also benefiting from the same techniques. The response promises to be no less heated. CAPM, the capital asset pricing model, embodies the theory. For financial executives, the proliferation of CAPM applications raises these questions: What is CAPM? How can they use the model? Most important, does it work?
1982-01-01T00:00:00
1982/01/01
https://hbr.org/1982/01/does-the-capital-asset-pricing-model-work
[ { "date": "2024/07/01", "position": 56, "query": "financial crisis stock exchange equity in the workplace" }, { "date": "2025/04/01", "position": 58, "query": "financial crisis stock exchange equity in the workplace" } ]
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How Top Nonunion Companies Manage Employees
How Top Nonunion Companies Manage Employees
https://hbr.org
[ "Fred K. Foulkes" ]
At one predominantly nonunion company, trainees in employee relations get experience in a union plant, a nonunion plant, and finally in a corporate staff ...
is professor of management policy at Boston University’s Graduate School of Management. He is also director of the school’s Human Resources Policy Institute. This article is based in part on his recent book, Personnel Policies in Large Nonunion Companies (Prentice-Hall, 1980).
1981-09-01T00:00:00
1981/09/01
https://hbr.org/1981/09/how-top-nonunion-companies-manage-employees
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Labor Unions Aggravate Inflation by Lowering Wages - FEE.org
Labor Unions Aggravate Inflation by Lowering Wages
https://fee.org
[ "Dwight R. Lee" ]
Labor union activities do aggravate inflation, but they do it by reducing the real wages received by workers, not by increasing them. An ...
Dwight Lee Is Associate Professor of Economics, Center for Study of Public Choice, Virginia Polytechnic Institute and State University. It is commonly believed that labor unions generate inflation by increasing the wages of workers. This is not the case. Labor union activities do aggravate inflation, but they do it by reducing the real wages received by workers, not by increasing them. An understanding of why this is true requires, first of all, a brief explanation of the cause of inflation. We are currently experiencing inflation for the same reason that any economy, at any time, has ever experienced inflation: the money supply has been growing more rapidly than the growth in production. Assume, for example, that the production of goods remained the same but the number of dollars we have to spend on these goods doubled. We would all be willing to spend approximately twice as much on each good as before. But this means that the price of goods would also double, as would the general price level. Increase the growth in the money supply and reduce the growth in productivity and inflation will result. Since monetary growth is subject to much larger changes than productivity growth, it is a rapidly growing money supply that explains most of our inflation. It is the federal government that controls the money supply, so the major blame for inflation can be placed on government activity. Labor unions aggravate inflation however, by engaging in practices which impair economic productivity. It is only by imposing restrictions on the economy which reduce productivity that a union can provide an economic benefit to its members. In a free and open labor market a worker will be able to receive a wage that reflects his productivity and which is no higher than what comparably skilled workers are receiving elsewhere in the economy. A higher wage would attract additional workers thus driving the wage back down to the competitive level. Of course, this competitive process increases the productivity of the economy by directing workers into those employments where their contribution is greatest. And it is productivity that has increased over time in response to the incentives and direction provided by competitive markets that, at least until recently, made U. S. workers the best paid in the world. But union leaders cannot attract dues-paying members by getting them a wage rate that they could earn without a union. And the only way unions can provide their members with higher than competitive wages in some occupations is to restrict the competition from nonunion workers. While this may increase union wages in the short run, it does so at the expense of lower wages for other workers. Higher union wages and prices in one sector of the economy are effectively offset by lower wages and prices elsewhere in the economy. In order to realize this relative wage advantage for its members, organized labor has consistently fought for legislation which reduces, if not eliminates, the opportunity for nonunion workers to secure jobs that would otherwise be available to them. Organized labor’s struggle for the closed shop (only union members can be employed) and their bitter opposition to state right- to-work laws (which eliminate union membership as a requirement for employment) are clear examples of union attempts to protect their workers against competition. Other examples are union efforts to restrict imports and obtain legislation restricting the movement of large employers from the unionized NorthEast to the less unionized Sun Belt states. Competition Reduced To the extent that organized labor has been successful in these restrictive activities, the economic competition and mobility that is a major source of increased productivity has been reduced. And strong evidence of the success of unions in protecting their members against productive competition is seen in the featherbedding practices they are able to impose, practices which could never survive open competition. Unions have long inflicted costly featherbedding practices on the railroads, with the requirement that firemen remain on diesel locomotives being a well-known example. The building, theatrical and oceanshipping industries, as well as many others, also suffer from union featherbedding requirements. A typical example is that of a construction job which required the use of several very small gas-powered generators. Because of union requirements, each generator had to be attended by an operating engineer, an electrician, and a pipefitter. The engineer had to start the engine a few times each day, the electrician pushed wire plugs in the generator’s sockets if they were moved, and the pipefitter was there, “just in case.” Obviously, such practices further the negative effect organized labor has on our economy’s productivity. It is this impact on productivity that explains why the overall effect of organized labor is to reduce real wages. Productivity is the source of all income, including wages. Real wages depend on the wage earner’s ability to buy goods and services. It cannot be purchased unless it is first produced. Furthermore, for a given rate of monetary growth, the lower our productivity the higher the inflation rate. So unions have an inflationary impact by reducing productivity and thus lowering, not raising, the general level of real wages. Market Efficiency Hampered The best way to increase productivity, improve the living standard of all workers, and help retard inflation is to allow competition in free and open markets. Unfortunately we can expect little support in this direction from organized labor. Union leaders cannot tolerate the efficiency of competitive markets because what they have to offer their members comes from their ability to reduce the free market opportunities of others. The very existence of organized labor depends on its ability to use its political influence to sabotage the efficiency of the free enterprise system. If allowed to operate freely, the market process would simply circumvent union efforts to impose inefficiencies on the economy. This would leave union leaders with little to justify their healthy incomes, but also with little ability to undermine productivity, aggravate inflation and thereby reduce, in the long run, the real incomes of us all, union and nonunion workers alike.
1981-04-01T00:00:00
https://fee.org/articles/labor-unions-aggravate-inflation-by-lowering-wages/
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Viewpoint: Does Monopoly Cause Inflation? - Reason.com
Viewpoint: Does Monopoly Cause Inflation?
https://reason.com
[ "Alan Reynolds", "Jacob Sullum", "Tosin Akintola", "C.J. Ciaramella", "John Stossel", "Billy Binion", ".Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow", "Class", "Wp-Block-Co-Authors-Plus", "Display Inline" ]
A monopoly sells less than a competitive firm and thus charges a higher price by restricting supply. But it doesn't pay to keep charging more and more for less ...
Every time inflation speeds up, someone tries to revive the old idea that it is somehow linked to the size of corporations, which is said to be a sign of monopoly pricing. Statistics are freely tossed around that have nothing to do with competition—for example, that "only" a thousand "giant" corporations produce over half of all private goods and services. And it is then simply asserted that large corporations set prices arbitrarily, regardless of demand. This is, for example, a major theme of Almost Everyone's Guide to Economics by John Kenneth Galbraith and Nicole Salinger. Even if every industry in the country were a pure monopoly, however, with no possibility of substitution between them, it would still have no effect whatsoever on the rate of inflation. A monopoly sells less than a competitive firm and thus charges a higher price by restricting supply. But it doesn't pay to keep charging more and more for less and less, year after year. At some point, the loss of sales offsets the added revenue from a higher price. So the monopoly finds the optimal combination of price and volume to get the most profit. Once a monopoly has found the profit-maximizing blend of volume and price, there is no incentive at all to raise that price and lose sales, unless costs or demand go up. For a price increase to be profitable, demand for the monopoly's product must go up (meaning that people are willing to buy more units at any given price than before) or its supply of the product must go down (meaning that the costs of producing each unit have risen, reducing the amount that the firm can profitably sell at any given price). If costs are increasing throughout the economy, that is generally a sign of excess demand for final products that is reflected in excess demand for labor and materials used in the production process. And if demand (spending) is increasing rapidly throughout the economy, that clearly has nothing to do with the size of firms or the degree of competition. A second line of defense suggests that the many alleged monopolies have little incentive to resist large wage increases because they can simply hike prices to cover the cost. If prices are raised beyond the profit-maximizing point, however, sales and profits would decline for a monopoly just as they would for a competitive firm. A so-called wage-price spiral cannot continue without being validated by an increase in the supply of money to finance the increases. Otherwise, the real value of people's money would fall with the rising prices, thus slowing spending and creating an ever-increasing glut of products, services, and unemployed workers. Another variation on the theme suggests that a slowdown in spending, resulting from slower money growth, does not reduce prices because large corporations escape the market's discipline. According to this theory, it is only by causing unemployment and thereby reducing wage gains that there was any effect on inflation from the slowing of demand in the 1975-76 period. There's one problem with this theory, though: it bears no relationship to the facts. The rise in consumer prices for nonfood commodities slowed from 13.2 percent in 1974 to 6.2 percent in 1975; similar producer prices slowed from 20.5 percent to 6.7 percent; but hourly wage gains rose from 7.9 percent in 1974 to 8.4 percent in 1975. Prices didn't actually fall, on average, because the increases in spending only slowed down a bit—from 11.6 percent in 1974 to 8.1 percent in 1975. There is no need to get involved in the complex reasons why a sudden slowdown in money and spending is typically reflected first in declining output and only later in slowing inflation. It can simply be observed that, since this phenomenon is clearly not confined to big corporations or monopolies, the monopoly theory does not explain it. If only some product, service, or labor markets are assumed to be monopolized, and others are not, the irrelevance of monopoly becomes even clearer. Consumers might then spend a larger share of their incomes on monopolized goods and services, but that would necessarily reduce demand for goods and services from competitive sectors. Everyone can't simultaneously spend more money on everything unless there is more money to go around. Higher prices in monopolized areas of the economy would thus be offset by lower prices in competitive areas, leaving no net effect on measures of average prices. Similarly, if a union could raise wage rates in some trade by restricting entry, those foreclosed from such job opportunities would be compelled to seek work elsewhere—thus increasing the supply of labor in other occupations and depressing those wages. Average wage rates would be unaffected. In short, monopoly might explain why a particular price is relatively high at any moment in time. But monopoly cannot explain why that price, much less the average of all prices, is rising continually, year after year. Nor can monopoly explain why inflation is higher or lower at various times and places, unless the degree of monopoly is subject to huge and sudden gyrations. The structure of US industry and labor markets was surely not much different in 1974 than in 1964, but the inflation rate was 10 times higher. There is no credible evidence that elements of monopoly are particularly significant in the US economy, except where monopolies or cartels have been deliberately created by government regulation (Postal Service, airlines, trucking, utilities, occupational licensing laws, etc.). But even if it could be shown that monopoly was a pervasive phenomenon, the monopoly theory of inflation would still fail the most elementary tests of logic. Alan Reynolds is a vice-president of the First National Bank of Chicago.
1980-02-01T00:00:00
1980/02/01
https://reason.com/1980/02/01/does-monopoly-cause-inflation/
[ { "date": "1980/02/01", "position": 99, "query": "market concentration and monopolies inflation rate" }, { "date": "1980/02/01", "position": 81, "query": "market concentration and monopolies inflation rate" } ]
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Inflation and Market Structure 1967-1973 - IDEAS/RePEc
Inflation and Market Structure 1967-1973
https://ideas.repec.org
[ "Phillip Cagan", "Author", "Listed" ]
Earlier literature, largely theoretical, has suggested that concentrated industries tend to raise prices more rapidly, thereby exerting a permanent upward push ...
A variety of theories have been offered to explain why prices generally respond so little to declines in demand, and do so now less than formerly. Most of these center around a dependence of prices on costs, or the anticipated trend of costs, and a greater disregard for short-run changes in demand. The more appealing hypothesis is the simple one that price setters tend to adjust slowly to changes in market conditions; they transmit but do not originate inflation. To find that prices in the less competitive markets respond more slowly to changes in market conditions - first lagging, then catching up - would support the theory that firms try to avoid frequent changes in prices but vary in their ability to do so. Are lags in price adjustment related to market structure? Previous empirical studies of the relationship are inconclusive on this point. Earlier literature, largely theoretical, has suggested that concentrated industries tend to raise prices more rapidly, thereby exerting a permanent upward push on the price level. Empirical studies have usually reported the opposite or no consistent relation, however. On the lag-and-catching-up theory, the concentrated industries should exhibit greater increases in the period of waning inflation after 1969. This study examines the data for such a pattern and finds striking evidence of it. Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. These are the items that most often cite the same works as this one and are cited by the same works as this one. Corrections All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0033. See general information about how to correct material in RePEc. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html . Please note that corrections may take a couple of weeks to filter through the various RePEc services.
1974-02-06T00:00:00
1974/02/06
https://ideas.repec.org/p/nbr/nberwo/0033.html
[ { "date": "2023/07/01", "position": 72, "query": "market concentration and monopolies inflation rate" }, { "date": "2024/04/01", "position": 95, "query": "market concentration and monopolies inflation rate" }, { "date": "2025/01/01", "position": 73, "query": "market concentration and monopolies inflation rate" } ]
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Monopoly and Wages* | Canadian Journal of Economics and ...
Canadian Journal of Economics and Political Science/Revue canadienne de economiques et science politique
https://www.cambridge.org
[ "David Schwartzman" ]
Monopolistic firms pay higher wages than competitive firms, according to J. W. Garbarino and J. K. Galbraith. Some writers believe that ...
Monopolistic firms pay higher wages than competitive firms, according to J. W. Garbarino and J. K. Galbraith. Some writers believe that monopolistic firms balance the interests of employees, consumers, suppliers, and stockholders rather than maximize profits, a belief which suggests that they are generous employers rather than competitive firms who must strive for high profits. A few economists, in the taxonomic tradition, have suggested the possibility of high wages under monopoly, without expressing any opinion on the matter. The usual belief that monopolists take from the poor and give to the rich thus may be wrong. A finding that monopolists pay high wages also would imply that, for them, profit maximization takes second place to goals associated with public responsibility. In the main stream of neo-classical theory is the opposite view that wages are low under monopoly. The exposition by Mrs. Joan Robinson assumes an upward-sloping supply curve of labour not only to each industry but also to each firm. Labour economists in recent years have followed Mrs. Robinson in stressing the prevalence of monopsony. It may be shown that product monopolists are likely to have more monopsony power than competitive firms, so, according to neo-classical theory, monopolists transfer income from the poor to the rich through low wages as well as through high prices. I propose to test the proposition that monopoly raises wages and the opposite—that it lowers them—by comparing average annual earnings in Canadian monopolistic industries with those in matched United States industries which are competitive, or less monopolistic. The theories together with the evidence on which they are based will be presented first.
1960-11-06T00:00:00
1960/11/06
https://www.cambridge.org/core/journals/canadian-journal-of-economics-and-political-science-revue-canadienne-de-economiques-et-science-politique/article/monopoly-and-wages/AB32FBCC83A4540A2EEC7C5FCD3383E1
[ { "date": "2014/11/07", "position": 87, "query": "market concentration and monopolies wage distribution" } ]
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INFLATION AND WAGE DIFFERENTIALS IN GREAT BRITAIN
Inflation and Wage Differentials in Great Britain
https://link.springer.com
[ "Turner", "H. A.", "University Of Manchester", "H. A. Turner", "Search Author On", "Author Information" ]
skilled' workers: the unions and employers' organizations have so far found ... Second, to any trade union, an increase in the wage rates of an associated union's.
The relative antiquity of collective bargaining in Britain may give custom and convention a greater influence on the fixing of wages there than is general. What follows is an interpretation of British experience, particularly that of the period of full employment since 1940, but much of it may have an application to other ‘high employment’ economies of the Western type. There seems to be a dual relation between the inflationary trend characteristic of such economies and the system of wage differentials. Attention has been largely concentrated upon the effects of inflation on relative wages. Wage relationships, however, may also play a more positive rle in sustaining the inflation and determining its form.
1957-08-06T00:00:00
1957/08/06
https://link.springer.com/content/pdf/10.1007/978-1-349-15205-6_9
[ { "date": "2023/10/01", "position": 70, "query": "worker organization labor unions inflation rate" }, { "date": "2024/01/01", "position": 69, "query": "worker organization labor unions inflation rate" } ]
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Labor to Push Organizing Of White-Collar Workers; New Union Feud ...
Labor to Push Organizing Of White-Collar Workers; New Union Feud Flares Labor Plans Full-Scale Drive To Unionize White-Collar Field Dispute Stays Unsolved Charge by Carey Union
https://www.nytimes.com
[ "A.H. Raskin Special To The New York Times." ]
A total of 120 organizers will be assigned by the parent body) to work with a score of international unions in trying to “crack” the white-collar field.
MIAMI BEACH, Feb. 6-The united labor movement gave the green light today for its first large-scale organizing campaign an effort to lure 13,000,000 unorganized white-collar workers into union ranks. The go-ahead signal was given at the closing session of the mid-winter meeting of the' Executive Council of the American Federation of Labor and Congress of Industrial Organizations. A total of 120 organizers will be assigned by the parent body) to work with a score of international unions in trying to “crack” the white-collar field. George Meany, the federation's president, expressed confidence that the drive would not be held back by jurisdictional conflicts. Such fights between unions over which group should get any workers who might be organized have blocked recruiting plans among industrial workers in the fourteen months since the labor merger. New Union Feud Flares Meanwhile, a new union feud broke out here when the Sheet Metal International Association threatened libel suit against the International Union of Electrical Workers. a The threat grew out of a formal charge by the electrical union that its sister organization in the merged labor federation had made a "reprehensible, collusive deal" with a Long Island manufacturer. Labor's plan for an organizing drive was warmly received by John W. Livingston, director of organization for the combined union. He said the results of isolated attempts to sign up white-collar employes in various areas had convinced him there was "greater receptivity to un-ionization" among such workers now than ever before. However, there was little outward indication that the council] members shared his optimism that any substantial increase in the present estimated total of 3,000,000 union white collar workers would be recorded in the near future. Even though four workers are still unorganized for every union member in banks, insurance companeis, retail stores, offices, Government agencies and other white-collar enterprises, most top unionists appear to believe] the chances for an immediate break-through of major proportions were slight. No action was taken on a standing offer by the old C. I. O. unions in automobiles, steel, electrical manufacturing and clothing to put a combined total of $4,000,000 into a central organizing fund provided other large unions made comparable contributions. The whole subject of new organization was put off until the tail end of the council's agenda, and Mr. Livingston was obliged to rush his report, to keep the federation leaders from missing their planes and trains. Mr. Meany characterized the report as "pretty routine." However, he made it plain that the federation did hope to give help to every union interested in organizing white-collar workers without being stopped by jurisdictional roadblocks. The two principal unions now active among white-collar workers are the Office Employes International Union and the American Federation of State, County and Municipal Employes. There are also two unions organizing insurance workers and several groups active among Federal postal workers. The federation has two affiliates in the merchandising field and a scattering of small unions in other white-collar occupations. In addition, industrial unions in the mass production industries have made substantial headway in bringing the office employes in their companies into the same union as hourly-rated workers. Mr. Meany said the A. F. L.-C. I. O. would cooperate impartially with all groups in organizing within their jurisdictional spheres. Mr. Livingston, a former international vice president of the United Automobile Workers, said he intended to hire thirty-five or forty young men and women for the new drive. He said all would be white-collar workers themselves and that many would have college degrees. The federation also will detail eighty or eighty-five members of its present 275-man organizing staff to work in the campaign. Mr. Livingston said specific assignment plans would be worked out in Washington in the next few weeks. Dispute Stays Unsolved The council did not solve any of the inter-union disputes that have held back organizing in other fields. The lack of agreement between overlapping unions has been felt in chemicals, furniture and other fields. Some progress is being made in textiles, Mr. Livingston reported. However, he repeated earlier statements that signing up all the 700,000 nonunion textile workers would be a “long, hard pull." The chief organizer said the nonunion group in white-collar industries represented more than half of all the unorganized workers in the country. The federation has 15,000,000 members. Another 2,000,000 workers are members of independent unions. The outbreak of ill feeling between the two unions today came as the A. F. L. - C. I. O. Executive Council was taking a series of steps designed to ease friction between other pre-merger enemies. The sheet metal union, under| the presidency of Robert Byron, was affiliated with the old American Federation of Labor. The electrical union, headed by James B. Carey, was a pillar of the old Congress of Industrial Organizations. In the specific case that touched off the Byron-Carey conflict, the council found the electrical union guilty of violating the no-raiding provisions of the federation constitution. It ordered the Carey group to dis-continue efforts before the National Labor Relations Board to cust the sheet metal union as bargaining agent for employes of the Belock Instrument Corporation at College Point, Queens. George Meany, president of the federation, said the decision left the electrical union free to bring in its "collusion" charge at the next council meeting in May. Charge by Carey Union. In a brief filed with the council, the Carey organization charged that a contract between the union and the sheet metal workers was the product of "corrupt dealing." Mr. Carey. denied that attempts by his union to upset the contract constituted raiding. Mr. Byron flatly denied the collusion charge. He noted that the electrical union already was being sued for $1,000,000 in a libel action brought by the International Association of Machinists. He instructed his attorneys to take similar action. An even more bitter dispute involving the sheet metal union was put in the hands of Mr. Meany and two federation vice presidents for final decision. The fight grew out of the metal 'workers' refusal to install ventilating equipment made by members of the United Steel Workers of America at the Akron, Ohio, plant of the Burt Manufacturing Company. Mr. Meany, accompanied by George M. Harrison of the Brotherhood of Railway Clerks and Joseph A. Beirne of the Communications Workers of America, will go to Akron Feb. 18 to pass on the dispute. Labor Plans Full-Scale Drive To Unionize White-Collar Field
1957-02-07T00:00:00
1957/02/07
https://www.nytimes.com/1957/02/07/archives/labor-to-push-organizing-of-whitecollar-workers-new-union-feud.html
[ { "date": "2024/10/01", "position": 39, "query": "worker organization labor unions white collar workers" } ]
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Pay of White Collar Workers; SCHRAM CRITICIZES TAX REVISION ...
Pay of White Collar Workers; SCHRAM CRITICIZES TAX REVISION PLAN
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Pay of White Collar Workers; SCHRAM CRITICIZES TAX REVISION PLAN. Share full ... , Section BUSINESS FINANCIAL, Page 35Buy Reprints · View on timesmachine.
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1943-11-18T00:00:00
1943/11/18
https://www.nytimes.com/1943/11/18/archives/pay-of-white-collar-workers-schram-criticizes-tax-revision-plan.html
[ { "date": "2023/10/01", "position": 77, "query": "corporate taxes white collar workers" } ]
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Building a Future-Ready Workforce: Reskilling Strategies for the Age ...
Building a Future-Ready Workforce: Reskilling Strategies for the Age of Automation
https://hgwconsult.com.au
[ "H. G", "W Consultants" ]
The rise of automation and artificial intelligence (AI) is transforming the global workforce at a scale and speed never seen before. Jobs ...
Building a Future-Ready Workforce: Reskilling Strategies for the Age of Automation Executive Summary The rise of automation and artificial intelligence (AI) is transforming the global workforce at a scale and speed never seen before. Jobs are evolving rapidly, and organizations are being challenged to prepare their talent for a future defined by change, not stability. This article outlines strategic approaches to reskilling, explores global trends in workforce transformation, and offers insights into how organizations can build a future-ready workforce to remain competitive and inclusive in the digital age. Introduction: Automation Is Rewriting the Rules of Work By 2030, automation is projected to displace up to 375 million workers globally, according to McKinsey Global Institute. While automation will eliminate some jobs, it will also create demand for new roles requiring a different set of skills—especially those involving creativity, emotional intelligence, data literacy, and technological fluency. The key question is no longer “Will automation replace jobs?” but rather “Are we prepared for the jobs that automation will create?” The Case for Reskillin: Why Reskilling Matters: Talent Shortages: The World Economic Forum (WEF) projects that 50% of employees will need reskilling by 2025 as adoption of technology increases. Cost of Inaction: A 2023 IBM study found that organizations failing to reskill risk falling behind on innovation and customer expectations. Social Impact: Reskilling fosters workforce inclusion and economic resilience, especially in underserved regions. Reskilling vs. Upskilling: What’s the Difference? Reskilling: Training employees for entirely new roles (e.g., a warehouse associate becoming a data analyst). Upskilling: Enhancing skills to perform existing roles more efficiently (e.g., a marketer learning to use automation tools). Both are essential in a long-term workforce strategy. Future-Ready Skill Sets: What Organizations Should Focus On Skill Category Examples Digital Literacy Cloud computing, cybersecurity, AI Cognitive Skills Problem-solving, data analysis Social-Emotional Skills Leadership, empathy, collaboration Adaptability Change management, resilience Strategic Reskilling Framework for Businesses 1.Assess Current & Future Skills Gaps Conduct skills audits Forecast future talent needs based on strategic goals 2. Personalize Learning Paths Use AI-driven learning platforms to match employees to relevant courses Microlearning for busy professionals 3. Foster a Learning Culture Incentivize continuous learning Promote knowledge sharing and peer learning 4. Partner with Ecosystems Collaborate with universities, tech providers, and governments Tap into public programs and upskilling grants 5, Measure ROI Track impact on employee retention, productivity, and innovation Case Study: Siemens Siemens launched a large-scale reskilling initiative through its “Siemens Learning World” platform, providing customized learning journeys across 160,000 employees. Within 18 months, over 3 million learning hours were logged, significantly boosting internal mobility and innovation. Conclusion: Prepare Now or Fall Behind Building a future-ready workforce requires a bold and structured reskilling strategy—one that empowers employees, transforms organizational culture, and prepares businesses to lead in a world reshaped by automation. It’s not a question of if businesses should act, but how fast they can adapt.
1926-02-14T00:00:00
1926/02/14
https://hgwconsult.com.au/1926-2/
[ { "date": "2025/06/11", "position": 77, "query": "reskilling AI automation" } ]
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Leading wealth management companies in the artificial ...
Leading wealth management companies in the artificial intelligence theme
https://www.privatebankerinternational.com
[ "Vasanthi Vara" ]
According to GlobalData's thematic research report, AI in Banking, leading adopters include: DBS, UBS, HSBC, RBC, Charles Schwab, Morgan Stanley, WealthSimple, ...
The future of the wealth management industry will be shaped by a range of disruptive themes, with artificial intelligence (AI) being one of the themes that will have a significant impact on wealth management companies. A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Artificial Intelligence (AI) in Banking – Thematic Research. Buy the report here. AI refers to software-based systems that use data inputs to make decisions on their own. In banking, AI use cases range from enhancing client interactions through chatbots; to providing better loan terms through data-driven risk assessments; and the automation of laborious back-end processes. Banks can realise the benefits of AI in cost savings, quality improvements, an expansion of their services, and increased personalisation in these product offerings. There has never been a more important time for banks to invest in AI. With threats to the industry coming from both disruptive fintechs and the Covid-19 pandemic, which uprooted traditional branch-based banking, banks must be proactive in adapting their strategies and processes to remain competitive and desirable to consumers. Fintechs have changed consumer expectations, putting more pressure on banks to offer a better user experience. This comes at a time when 0% interest rates are already challenging retail banks’ core business. However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position. According to GlobalData’s thematic research report, AI in Banking, leading adopters include: DBS, UBS, HSBC, RBC, Charles Schwab, Morgan Stanley, WealthSimple, Betterment, BlackRock, and SoFi. Insights from top ranked companies DBS DBS Bank is a Singaporean bank and financial services firm with a focus on digital banking. The bank uses AI to offer personalised offers and services to clients, in what it calls ‘intelligent banking’. This includes analysing vast troves of data and offering proposals to clients that may have otherwise not been identified. DBS Bank’s iWealth wealth management app recommends stocks in specific sectors based on customers’ portfolios. Furthermore, the bank has been using AI and ML to detect anomalous transactions on customer accounts, this ensures that fraud is combatted, cybersecurity is robust, and AML concerns are well addressed. HSBC HSBC has not been as innovative as its digital counterparts when it comes to AI adoption. However, it has still shown initiative in some areas. In 2018, HSBC launched its Global Social Network Analytics platform, which uses big data to tackle financial crimes such as money laundering and terrorist financing. The bank also uses an AI pricing chatbot forex options and keeps all its ATMs stocked through an AI-based system. The most innovative application of AI yet seen from HSBC has been the experimentation with an in-branch robot, developed in partnership with SoftBank Robotics. The robot, called Pepper, uses data intelligence to perform over 300 different actions, including opening accounts and credit card applications. Pepper uses NLP to understand multiple languages and can even basic human emotions and adapt its behaviour accordingly. To further understand the key themes and technologies disrupting the wealth management industry, access GlobalData’s latest thematic research report on AI in Banking. T Rowe Price Scalable Capital Moneyfarm Bank of America SigFig Empower Retirement Acorns JPMorgan Chase Goldman Sachs Vanguard Stashaway Robinhood Magnum Research Fidelity Wells Fargo OCBC Societe Generale UOB TrueWealth BNY Mellon St. James's Place Lombard Odier Bank of Montreal Santander Group ABN AMRO Citigroup Raymond James Julius Baer Vontobel UBP Data Insights From The gold standard of business intelligence. Blending expert knowledge with cutting-edge technology, GlobalData’s unrivalled proprietary data will enable you to decode what’s happening in your market. You can make better informed decisions and gain a future-proof advantage over your competitors. Be better informed
2030-01-11T00:00:00
1/11/30
https://www.privatebankerinternational.com/data-insights/top-ranked-wealth-management-companies-in-artificial-intelligence/
[ { "date": "2022/12/05", "position": 84, "query": "artificial intelligence business leaders" } ]
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Leading payment companies in the artificial intelligence ...
Leading payments companies in the artificial intelligence theme
https://www.electronicpaymentsinternational.com
[ "Vasanthi Vara" ]
According to GlobalData's thematic research report, AI in Banking, leading adopters include: Amazon, Alphabet, Apple, Z Holdings, Tencent, Ant Group, Goldman ...
The future of the payments industry will be shaped by a range of disruptive themes, with artificial intelligence (AI) being one of the themes that will have a significant impact on payments companies. A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Artificial Intelligence (AI) in Banking – Thematic Research. Buy the report here. AI refers to software-based systems that use data inputs to make decisions on their own. In banking, AI use cases range from enhancing client interactions through chatbots; to providing better loan terms through data-driven risk assessments; and the automation of laborious back-end processes. Banks can realise the benefits of AI in cost savings, quality improvements, an expansion of their services, and increased personalisation in these product offerings. There has never been a more important time for banks to invest in AI. With threats to the industry coming from both disruptive fintechs and the Covid-19 pandemic, which uprooted traditional branch-based banking, banks must be proactive in adapting their strategies and processes to remain competitive and desirable to consumers. Fintechs have changed consumer expectations, putting more pressure on banks to offer a better user experience. This comes at a time when 0% interest rates are already challenging retail banks’ core business. However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position. According to GlobalData’s thematic research report, AI in Banking, leading adopters include: Amazon, Alphabet, Apple, Z Holdings, Tencent, Ant Group, Goldman Sachs, BBVA, OakNorth, and DBS Bank. Insights from top ranked companies Amazon As the world’s leading provider of cloud infrastructure services, Amazon competes with Google in AI services. It offers a slew of AI and ML services through AWS. These include pre-trained AI services for image and video analysis (Rekognition), conversational agents (Lex), and text-to-speech applications (Polly). Cloud ML platform SageMaker was launched towards the end of 2017. The most well-known AI product from Amazon is Alexa, its virtual assistant. As part of its Echo range of devices, Alexa gave Amazon an early lead in the nascent smart speaker market. Amazon orchestrates the world’s largest fleet of mobile robots in its warehouses and has invested heavily in AI-related M&A activity, acquiring Canvas, a warehouse robotics company, in 2019, and Zoox, a leading autonomous vehicle start-up, in mid-2020. Alphabet Google is, by most measures, the leading provider of AI. The company has been at the forefront of several of the most significant breakthroughs in AI, from the autonomous car (Waymo) to AlphaGo. It offers the broadest portfolio of ML technologies, its Google Assistant conversational platform regularly outperforms its competitors, its TPU family of accelerators is cutting-edge, and it is a powerhouse in AI R&D. Google’s biggest asset is its wealth of customer data. The tech giant has been heavily involved in AI-related M&A activity, with its 2014 acquisition of ML pioneer DeepMind the most well-known. In the last couple of years, Google has emphasised the importance of ethical considerations within AI and using AI for social good, contributing to far more social media attention than any other company. Apple Apple trails the leading players in AI. Both Google Assistant and Amazon Alexa regularly outperform Siri, and Apple was slow to enter the smart speaker race, resulting in its HomePod having a lot of ground to make up. However, Apple dominates the important wearables segment with its smartwatch and hearables, products that will help it increase the use of Siri. In recent years, Apple has made a string of AI acquisitions to close the gap on its rivals. Significant investment has gone towards improving Siri, including the purchase of several ML, voice tech, and edge computing start-ups. There has also been widespread speculation that Apple will acquire wireless speaker company Sonos. To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on AI in Banking. PayPal Visa Mastercard Klarna Block Revolut Stripe Paytm ACI Worldwide Adyen Worldline SumUp Amex Samsung Electronics Meta Monese JCB FIS Discover Verifone JPMorgan Chase Fiserv Global Payments SecurePay Barclays Danske WorldRemit Nets Wise MoneyGram Data Insights From The gold standard of business intelligence. Blending expert knowledge with cutting-edge technology, GlobalData’s unrivalled proprietary data will enable you to decode what’s happening in your market. You can make better informed decisions and gain a future-proof advantage over your competitors. Be better informed
2030-01-11T00:00:00
1/11/30
https://www.electronicpaymentsinternational.com/data-insights/top-ranked-payment-companies-in-artificial-intelligence/
[ { "date": "2022/12/12", "position": 97, "query": "artificial intelligence business leaders" } ]
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How Long It Takes To Learn Machine Learning With Python?
How Long It Takes To Learn Machine Learning With Python?
https://www.theiotacademy.co
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Mastering two technologies together has many benefits in the long run. Both machine learning and python are in high demand and you will get ample job ...
You may wish to learn Python for machine learning, like many aspirant Data Scientists or Data Analysts. But you might be unaware of how much time it will take to master both simultaneously. Several variables, including your prior Python and programming experience, will affect how long it takes you to learn Python for machine learning. Mastering two technologies together has many benefits in the long run. Both machine learning and python are in high demand and you will get ample job opportunities after adding them to your skill set. The amount of time it takes to learn Python with machine learning depends on your goals. Read on for expert tips on how to maximise your learning What Is Machine Learning? One of the most well-known subsets of artificial intelligence is machine learning (ML). Training in computer languages like Python, databases like MySQL, and natural language processing may be necessary for this complex and diverse industry. Data scientists, machine learning engineers, and business intelligence analysts are three professions that require these talents. The Average Learning Time For Machine Learning The typical machine learning program lasts six months. But it may take years to grasp all the criteria for a certain profession. Consider your own experience and skill level because not everyone has the same ML career path. For instance, a novice programmer could require instruction in the principles of Python programming. Whereas an experienced programmer might be ready to go right into a machine learning boot camp. Some students enroll in boot camps to learn everything from scratch. But others may already have work experience but want to switch careers. The following factors affect how long it will take you to learn machine learning: If you have any prior data science or data analysis experience How long a day does it take to complete your ML training? The kind of instruction (self-taught, on-demand, boot camp, or certificate programs) Students who excel in statistics or probability might also anticipate an easier time. Machine learning trainees with prior programming knowledge may have an advantage over those with none. What Is Python? Python is a programming language that emphasises readability, making it simpler to comprehend and use. It can therefore be seen as beginner-friendly. Because its syntax resembles the English language, it makes it simple for new programmers to enter the field of programming. The rules are not strictly established in Python. Hence it is a flexible, dynamically typed language, which makes it easier to understand. Additionally, it is a more tolerant language that can function with some degree of faults. What Is The Time Taken To Learn Python? One can learn Python from scratch in 2-6 months that may depend on many factors. For instance, depending on how much time you invest in studying, the time may vary. For instance, if you dedicate six hours per week to the courses, it usually takes four months to finish the Python for Everyone Specialisation on Coursera.You could finish the Specialization in two months if you can commit more time. You can anticipate learning the fundamental Python syntax and components in this course and many others: Types and variables A data structure is an object (strings, integers, floats, etc.) Slicing and indexing operators for comparison while and for loops Functions dictionaries, tuples, and lists examining and updating files Objects and classes Web scraping interfaces for application programming (APIs) Benefits Of Machine Learning With Python Python is a general-purpose programming language that can be used to develop apps, analyse data, create machine learning systems, generate file directories, and more. Data Scientists must have a solid understanding of Python programming and its uses due to the numerous applications it has for using and managing data. Some of them are discussed below: To personalise and enhance user experiences, machine learning experts employ Python. Machine learning helps in automating customer service, detection of fraud, product recommendations, improving search engine results, automating translations, music recommendations, and drug effect predictions. Machine learning has infinite applications, and since demand is only growing, it is advantageous to learn Python for machine learning right now. The many advantages of learning Python for you can include making it simpler for you to learn new programming languages. It will offer you a talent that is in high demand in the job market, and facilitate communication in cross-disciplinary teams. Time Is Taken To Learn Python For Machine Learning Your level of programming proficiency in Python will determine how long it takes you to master Python for machine learning. If you are already familiar with the fundamentals of Python programming, you can enrol in a course on Python for machine learning. You could add Python and machine learning to your resume in as little as one week with a course like this. You will need to spend more time learning if you don't already know the basics of Python programming. In 2023, Will Learning Python Be Worthwhile? In 2023, studying Python will pay off since Python-savvy programmers are in high demand. Some of the trendiest disciplines in technology, such as machine learning and artificial intelligence rely on Python. Some of the supporting factors are: Python is the preferred language across a variety of industries, including data science, data analysis, and machine learning. It is due to the well-known ML packages like Pandas and Scikit-learn. It is useful since there is a rising demand for workers with ML expertise, in many sectors. Python can be useful for a variety of professional roles due to its adaptability and the many functions and applications it has. If your work involves web applications, software, data, products, or design, you should at least master the fundamentals of Python. Conclusion If you are already familiar with the basics of Python programming, learning Python for machine learning can take as little time as one week. However, if you have no prior Python programming expertise, you can enroll in a one-week or longer Python fundamentals course. You can also enroll in a Machine Learning with Python course offered by The IoT Academy. By immersing yourself in machine learning and Python training and industry publications, you can learn quickly.
2030-01-11T00:00:00
1/11/30
https://www.theiotacademy.co/blog/learn-machine-learning-with-python/
[ { "date": "2023/01/16", "position": 70, "query": "machine learning job market" } ]
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