Sociology: Your Compass for a New World Robert J. Brym and John Lie Wadsworth Group/Thomson Learning © 2003

Work and the Economy Chapter 10

Three Revolutions in Work WThe Agricultural Revolution Began 10,000 Years Ago When People Established Permanent Settlements and Started Herding and Farming. WThe Industrial Revolution Began 220 Years Ago When Machines Like the Steam Engine Greatly Increased the Ability of Producers to Supply Markets.  The Postindustrial Revolution Took Place in the Twentieth Century As Service Industries Came to Dominate the Economy.

Effects of the Three Revolutions WEach Revolution in Work W Increased Productivity and the Division of Labor W Caused a sectoral Shift in Employment W Made Work Relations More Hierarchical.  However, for the Past 30 Years the Degree of Hierarchy Has Been Lowered in Some Industries, Resulting in Productivity Gains and More Workers Satisfaction.

Civilian Employment by Economic Sector, U.S.A., (in percent) Year Percent Source: De Long (1998: 23); U.S. Department of Labor (1999a). Service Manufacturing Agriculture Approximate Labor Force Distribution, (in percent) Agriculture Manufacturing Services Total

Deskilled and Skilled Work WDeskilling and the Growth of Part-time Jobs Are Two of the Main Trends in the Workplace in the Twentieth Century. WHowever, Skilled Labor Has Remained Very Important in the Economy.

“Good” and “Bad” Jobs WGood Jobs Are Become More Plentiful but the Number of Bad Jobs Is Growing Even More Rapidly. WThe Result Is Polarization or Segmentation of the Labor Force Into Primary and Secondary Labor Markets.

Worker Resistance to Deskilling WWorkers Have Resisted Attempts to Deskill and Control Jobs. WBusiness Has Had to Make Concessions by Giving Workers More Authority on the Shop Floor and in Formulating Overall Business Strategy. WSuch Concessions Have Been Biggest in Countries Where Workers Are More Organized and Powerful.

Average Hours Worked Per Week, Selected Countries, Hours Per Week Source: “Mild Labor…” (1999).

Average Paid Vacation Days Per Year, Selected Countries, Source: “Mild Labor…” (1999). Days Per Year

Internal Labor Markets Unions and Professional Organizations Have Established Internal Labor Markets to Control WPay Rates WHiring WPromotions WReduce Competition With External Labor Supplies

Barriers to Mobility Out of Secondary Labor Markets WThere Are Few Entry-level Positions in the Primary Labor Market. WPeople in the Secondary Labor Market Lack Informal Network Ties Linking Them to Job Openings in the Primary Labor Market. WMobility Out of the Secondary Labor Market Is Difficult Because Workers Usually Lack the Required Training and Certification for Jobs in the Primary Labor Market.

From the Primary to the Secondary Labor Market 1. White male unionized ($661) 2. White female unionized ($551) 3. Latino (male) unionized ($528) 4. African-American male unionized and white male non-unionized ($526) 6. African-American female unionized ($473) 7.Latina (female) unionized ($423) 8. White female non-unionized ($395) 9. African-American male non-unionized ($374) 10. African-American female non-unionized ($325) 11. Latino (male) non-unionized ($321) 12. Latina (female) non-unionized ($291) 1995 median weekly earnings of full-time wage and salary workers in the U.S.A. by union status, sex, and race. Source: Hesse-Biber and Carter (2000: 125).

Free and Regulated Markets WMarkets Are Free or Regulated to Varying Degrees. WNo Market That Is Purely Free or Completely Regulated Could Function for Long. WA Purely Free Market Would Create Unbearable Inequalities.  A Completely Regulated Market Would Stagnate.

Capitalism and Communism WCapitalism Involves W Private Ownership of Property W Competition in the Pursuit of Profit WCommunism Involves W Public Ownership of Property W Government Planning of the Economy

The Corporation I WCorporations Are the Dominant Economic Players in the World Today. They Exercise Disproportionate Economic and Political Influence by Forming Interlocking Directorates WOligopolies WConglomerates WInterlocking Directorates

The Corporation II WGrowing Competition Between Multinational Corporations Has Led Them to Cut Costs by Building More Branch Plants in Low-wage, Low- tax Countries. WStockholders Have Profited From This Strategy.  Benefits for Workers in Both the Industrialized and the Less Developed Countries Have Been Mixed.

Percent Increase in U.S. Labor Force by Race and Hispanic Origin, (projected; in percent) Percent Source: U.S. Department of Labor (1999d). Gender

Value of the Federal Minimum Wage, U.S.A., (in 1998 $) Year Dollars per hour Source: U.S. Department of Labor (1999f).