What Works for Workers?


Book Description

The majority of new jobs created in the United States today are low-wage jobs, and a fourth of the labor force earns no more than poverty-level wages. Policymakers and citizens alike agree that declining real wages and constrained spending among such a large segment of workers imperil economic prosperity and living standards for all Americans. Though many policies to assist low-wage workers have been proposed, there is little agreement across the political spectrum about which policies actually reduce poverty and raise income among the working poor. What Works for Workers provides a comprehensive analysis of policy measures designed to address the widening income gap in the United States. Featuring contributions from an eminent group of social scientists, What Works for Workers evaluates the most high-profile strategies for poverty reduction, including innovative “living wage” ordinances, education programs for African American youth, and better regulation of labor laws pertaining to immigrants. The contributors delve into an extensive body of scholarship on low-wage work to reveal a number of surprising findings. Richard Freeman suggests that labor unions, long assumed to be moribund, have a fighting chance to reclaim their historic redistributive role if they move beyond traditional collective bargaining and establish new ties with other community actors. John Schmitt predicts that the Affordable Care Act will substantially increase insurance coverage for low-wage workers, 38 percent of whom currently lack any kind of health insurance. Other contributors explore the shortcomings of popular solutions: Stephanie Luce shows that while living wage ordinances rarely lead to job losses, they have not yet covered most low-wage workers. And Jennifer Gordon corrects the notion that a path to legalization alone will fix the plight of immigrant workers. Without energetic regulatory enforcement, she argues, legalization may have limited impact on the exploitation of undocumented workers. Ruth Milkman and Eileen Appelbaum conclude with an analysis of California’s paid family leave program, a policy designed to benefit the working poor, who have few resources that allow them to take time off work to care for children or ill family members. Despite initial opposition, the paid leave program proved more acceptable than expected among employers and provided a much-needed system of wage replacement for low-income workers. In the wake of its success, the initiative has emerged as a useful blueprint for paid leave programs in other states. Alleviating the low-wage crisis will require a comprehensive set of programs rather than piecemeal interventions. With its rigorous analysis of what works and what doesn’t, What Works for Workers points the way toward effective reform. For social scientists, policymakers, and activists grappling with the practical realities of low-wage work, this book provides a valuable guide for narrowing the gap separating rich and poor.







Low-Wage America


Book Description

About 27.5 million Americans—nearly 24 percent of the labor force—earn less than $8.70 an hour, not enough to keep a family of four out of poverty, even working full-time year-round. Job ladders for these workers have been dismantled, limiting their ability to get ahead in today's labor market. Low-Wage America is the most extensive study to date of how the choices employers make in response to economic globalization, industry deregulation, and advances in information technology affect the lives of tens of millions of workers at the bottom of the wage distribution. Based on data from hundreds of establishments in twenty-five industries—including manufacturing, telecommunications, hospitality, and health care—the case studies document how firms' responses to economic restructuring often results in harsh working conditions, reduced benefits, and fewer opportunities for advancement. For instance, increased pressure for profits in newly consolidated hotel chains has led to cost-cutting strategies such as requiring maids to increase the number of rooms they clean by 50 percent. Technological changes in the organization of call centers—the ultimate "disposable workplace"—have led to monitoring of operators' work performance, and eroded job ladders. Other chapters show how the temporary staffing industry has provided paths to better work for some, but to dead end jobs for many others; how new technology has reorganized work in the back offices of banks, raising skill requirements for workers; and how increased competition from abroad has forced U.S. manufacturers to cut costs by reducing wages and speeding production. Although employers' responses to economic pressures have had a generally negative effect on frontline workers, some employers manage to resist this trend and still compete successfully. The benefits to workers of multi-employer training consortia and the continuing relevance of unions offer important clues about what public policy can do to support the job prospects of this vast, but largely overlooked segment of the American workforce. Low-Wage America challenges us to a national self-examination about the nature of low-wage work in this country and asks whether we are willing to tolerate the profound social and economic consequences entailed by these jobs. A Volume in the Russell Sage Foundation Case Studies of Job Quality in Advanced Economies




Low-Wage Work in the United Kingdom


Book Description

The United Kingdom's labor market policies place it in a kind of institutional middle ground between the United States and continental Europe. Low pay grew sharply between the late 1970s and the mid-1990s, in large part due to the decline of unions and collective bargaining and the removal of protections for the low paid. The changes instituted by Tony Blair's New Labour government since 1997, including the introduction of the National Minimum Wage, halted the growth in low pay but have not reversed it. Low-Wage Work in the United Kingdom explains why the current level of low-paying work remains one of the highest in Europe. The authors argue that the failure to deal with low pay reflects a policy approach which stressed reducing poverty, but also centers on the importance of moving people off benefits and into work, even at low wages. The U.K. government has introduced a version of the U.S. welfare to work policies and continues to stress the importance of a highly flexible and competitive labor market. A central policy theme has been that education and training can empower people to both enter work and to move into better paying jobs. The case study research reveals the endemic nature of low paid work and the difficulties workers face in escaping from the bottom end of the jobs ladder. However, compared to the United States, low paid workers in the United Kingdom do benefit from in-work social security benefits, targeted predominately at those with children, and entitlements to non-pay benefits such as annual leave, maternity and sick pay, and crucially, access to state-funded health care. Low-Wage Work in the United Kingdom skillfully illustrates the way that the interactions between government policies, labor market institutions, and the economy have ensured that low pay remains a persistent problem within the United Kingdom. A Volume in the Russell Sage Foundation Case Studies of Job Quality in Advanced Economies




Working and Poor


Book Description

Over the last three decades, large-scale economic developments, such as technological change, the decline in unionization, and changing skill requirements, have exacted their biggest toll on low-wage workers. These workers often possess few marketable skills and few resources with which to support themselves during periods of economic transition. In Working and Poor, a distinguished group of economists and policy experts, headlined by editors Rebecca Blank, Sheldon Danziger, and Robert Schoeni, examine how economic and policy changes over the last twenty-five years have affected the well-being of low-wage workers and their families. Working and Poor examines every facet of the economic well-being of less-skilled workers, from employment and earnings opportunities to consumption behavior and social assistance policies. Rebecca Blank and Heidi Schierholz document the different trends in work and wages among less-skilled women and men. Between 1979 and 2003, labor force participation rose rapidly for these women, along with more modest increases in wages, while among the men both employment and wages fell. David Card and John DiNardo review the evidence on how technological changes have affected less-skilled workers and conclude that the effect has been smaller than many observers claim. Philip Levine examines the effectiveness of the Unemployment Insurance program during recessions. He finds that the program's eligibility rules, which deny benefits to workers who have not met minimum earnings requirements, exclude the very people who require help most and should be adjusted to provide for those with the highest need. On the other hand, Therese J. McGuire and David F. Merriman show that government help remains a valuable source of support during economic downturns. They find that during the most recent recession in 2001, when state budgets were stretched thin, legislatures resisted political pressure to cut spending for the poor. Working and Poor provides a valuable analysis of the role that public policy changes can play in improving the plight of the working poor. A comprehensive analysis of trends over the last twenty-five years, this book provides an invaluable reference for the public discussion of work and poverty in America. A Volume in the National Poverty Center Series on Poverty and Public Policy




Good Jobs, Bad Jobs


Book Description

The economic boom of the 1990s veiled a grim reality: in addition to the growing gap between rich and poor, the gap between good and bad quality jobs was also expanding. The postwar prosperity of the mid-twentieth century had enabled millions of American workers to join the middle class, but as author Arne L. Kalleberg shows, by the 1970s this upward movement had slowed, in part due to the steady disappearance of secure, well-paying industrial jobs. Ever since, precarious employment has been on the rise—paying low wages, offering few benefits, and with virtually no long-term security. Today, the polarization between workers with higher skill levels and those with low skills and low wages is more entrenched than ever. Good Jobs, Bad Jobs traces this trend to large-scale transformations in the American labor market and the changing demographics of low-wage workers. Kalleberg draws on nearly four decades of survey data, as well as his own research, to evaluate trends in U.S. job quality and suggest ways to improve American labor market practices and social policies. Good Jobs, Bad Jobs provides an insightful analysis of how and why precarious employment is gaining ground in the labor market and the role these developments have played in the decline of the middle class. Kalleberg shows that by the 1970s, government deregulation, global competition, and the rise of the service sector gained traction, while institutional protections for workers—such as unions and minimum-wage legislation—weakened. Together, these forces marked the end of postwar security for American workers. The composition of the labor force also changed significantly; the number of dual-earner families increased, as did the share of the workforce comprised of women, non-white, and immigrant workers. Of these groups, blacks, Latinos, and immigrants remain concentrated in the most precarious and low-quality jobs, with educational attainment being the leading indicator of who will earn the highest wages and experience the most job security and highest levels of autonomy and control over their jobs and schedules. Kalleberg demonstrates, however, that building a better safety net—increasing government responsibility for worker health care and retirement, as well as strengthening unions—can go a long way toward redressing the effects of today’s volatile labor market. There is every reason to expect that the growth of precarious jobs—which already make up a significant share of the American job market—will continue. Good Jobs, Bad Jobs deftly shows that the decline in U.S. job quality is not the result of fluctuations in the business cycle, but rather the result of economic restructuring and the disappearance of institutional protections for workers. Only government, employers and labor working together on long-term strategies—including an expanded safety net, strengthened legal protections, and better training opportunities—can help reverse this trend. A Volume in the American Sociological Association’s Rose Series in Sociology.




On the Clock


Book Description

"Nickel and Dimed for the Amazon age," (Salon) the bitingly funny, eye-opening story of finding work in the automated and time-starved world of hourly low-wage labor After the local newspaper where she worked as a reporter closed, Emily Guendelsberger took a pre-Christmas job at an Amazon fulfillment center outside Louisville, Kentucky. There, the vending machines were stocked with painkillers, and the staff turnover was dizzying. In the new year, she travelled to North Carolina to work at a call center, a place where even bathroom breaks were timed to the second. And finally, Guendelsberger was hired at a San Francisco McDonald's, narrowly escaping revenge-seeking customers who pelted her with condiments. Across three jobs, and in three different parts of the country, Guendelsberger directly took part in the revolution changing the U.S. workplace. Offering an up-close portrait of America's actual "essential workers," On the Clock examines the broken social safety net as well as an economy that has purposely had all the slack drained out and converted to profit. Until robots pack boxes, resolve billing issues, and make fast food, human beings supervised by AI will continue to get the job done. Guendelsberger shows us how workers went from being the most expensive element of production to the cheapest - and how low wage jobs have been remade to serve the ideals of efficiency, at the cost of humanity. On the Clock explores the lengths that half of Americans will go to in order to make a living, offering not only a better understanding of the modern workplace, but also surprising solutions to make work more humane for millions of Americans.




One Fair Wage


Book Description

From the author of the acclaimed Behind the Kitchen Door, a powerful examination of how the subminimum wage and the tipping system exploit society’s most vulnerable “No one has done more to move forward the rights of food and restaurant workers than Saru Jayaraman.” —Mark Bittman, author of The Kitchen Matrix and A Bone to Pick Before the COVID-19 pandemic devastated the country, more than six million people earned their living as tipped workers in the service industry. They served us in cafes and restaurants, they delivered food to our homes, they drove us wherever we wanted to go, and they worked in nail salons for as little as $2.13 an hour—the federal tipped minimum wage since 1991—leaving them with next to nothing to get by. These workers, unsurprisingly, were among the most vulnerable workers during the pandemic. As businesses across the country closed down or drastically scaled back their services, hundreds of thousands lost their jobs. As in many other areas, the pandemic exposed the inadequacies of the nation’s social safety net and minimum-wage standards. One of New York magazine’s “Influentials” of New York City, one of CNN’s Visionary Women in 2014, and a White House Champion of Change in 2014, Saru Jayaraman is a nationally acclaimed restaurant activist and the author of the bestselling Behind the Kitchen Door. In her new book, One Fair Wage, Jayaraman shines a light on these workers, illustrating how the people left out of the fight for a fair minimum wage are society’s most marginalized: people of color, many of them immigrants; women, who form the majority of tipped workers; disabled workers; incarcerated workers; and youth workers. They epitomize the direction of our whole economy, reflecting the precariousness and instability that is increasingly the lot of American labor.




Low-Wage Work in France


Book Description

In France, low wages have historically inspired tremendous political controversy. The social and political issues at stake center on integrating the working class into society and maintaining the stability of the republican regime. A variety of federal policies—including high minimum wages and strong employee protection—serve to ensure that the low-wage workforce stays relatively small. Low-Wage Work in France examines both the benefits and drawbacks of this politically inspired system of worker protection. France's high minimum wage, which is indexed not only to inflation but also to the average increase in employee wages, plays a critical role in limiting the development of low-paid work. Social welfare benefits and a mandatory thirty-five hour work week also make life easier for low-wage workers. Strong employee protection is a central characteristic of the French model, but high levels of protection for employees may also be one of the causes of France's chronically high rate of unemployment. The threat of long-term unemployment may, in turn, contribute to a persistent sense of insecurity among French workers. Low-Wage Work in France provides a lucid analysis of how a highly regulated labor market shapes the experiences of workers—for better and for worse. A Volume in the Russell Sage Foundation Case Studies of Job Quality in Advanced Economies




Making Ends Meet


Book Description

Welfare mothers are popularly viewed as passively dependent on their checks and averse to work. Reformers across the political spectrum advocate moving these women off the welfare rolls and into the labor force as the solution to their problems. Making Ends Meet offers dramatic evidence toward a different conclusion: In the present labor market, unskilled single mothers who hold jobs are frequently worse off than those on welfare, and neither welfare nor low-wage employment alone will support a family at subsistence levels. Kathryn Edin and Laura Lein interviewed nearly four hundred welfare and low-income single mothers from cities in Massachusetts, Texas, Illinois, and South Carolina over a six year period. They learned the reality of these mothers' struggles to provide for their families: where their money comes from, what they spend it on, how they cope with their children's needs, and what hardships they suffer. Edin and Lein's careful budgetary analyses reveal that even a full range of welfare benefits—AFDC payments, food stamps, Medicaid, and housing subsidies—typically meet only three-fifths of a family's needs, and that funds for adequate food, clothing and other necessities are often lacking. Leaving welfare for work offers little hope for improvement, and in many cases threatens even greater hardship. Jobs for unskilled and semi-skilled women provide meager salaries, irregular or uncertain hours, frequent layoffs, and no promise of advancement. Mothers who work not only assume extra child care, medical, and transportation expenses but are also deprived of many of the housing and educational subsidies available to those on welfare. Regardless of whether they are on welfare or employed, virtually all these single mothers need to supplement their income with menial, off-the-books work and intermittent contributions from family, live-in boyfriends, their children's fathers, and local charities. In doing so, they pay a heavy price. Welfare mothers must work covertly to avoid losing benefits, while working mothers are forced to sacrifice even more time with their children. Making Ends Meet demonstrates compellingly why the choice between welfare and work is more complex and risky than is commonly recognized by politicians, the media, or the public. Almost all the welfare-reliant women interviewed by Edin and Lein made repeated efforts to leave welfare for work, only to be forced to return when they lost their jobs, a child became ill, or they could not cover their bills with their wages. Mothers who managed more stable employment usually benefited from a variety of mitigating circumstances such as having a relative willing to watch their children for free, regular child support payments, or very low housing, medical, or commuting costs. With first hand accounts and detailed financial data, Making Ends Meet tells the real story of the challenges, hardships, and survival strategies of America's poorest families. If this country's efforts to improve the self-sufficiency of female-headed families is to succeed, reformers will need to move beyond the myths of welfare dependency and deal with the hard realities of an unrewarding American labor market, the lack of affordable health insurance and child care for single mothers who work, and the true cost of subsistence living. Making Ends Meet is a realistic look at a world that so many would change and so few understand.