Surfing over to Charles Dodgson’s site yesterday, I happened upon Elizabeth Warren’s lecture on the squeeze on the American middle class since the 1970s. Then you could bring up a family on one income; now you can’t. Then non-discretionary spending made up a smaller proportion of household spending; now, it dominates. Result: if a parent loses their job or gets sick, bankruptcy looms. I didn’t expect to sit watching a YouTube video for whole hour but I was riveted by the story Warren tells with the consumption statistics.
I was kind of reluctant to blog this too. After all, there are others at CT who do sociology or economics or family policy and I don’t do those things. And I’m not an American resident either. Still, it struck me as pretty compelling. I wonder how similar the change has been in the other OECD countries?
Part-time work is often argued to be one possible solution for working parents, so as to make the balance between work and caring easier. This post is not about the question whether this is indeed (part of) the solution in general – that is, for all types of paid work. Rather, I’d like to raise some doubts about the idea that part-time work is a good thing for academics who are doing research (in addition to whatever else they do – teaching or management). In this country, plenty of academics work part-time, and often standard lecturer positions are only offered on a part-time basis (often 80%). [click to continue…]
Clive Crook is probably my favourite sort-of-conservative big media commentator. But his new piece on ‘the End of the American Exception’ seems to me to be seriously out of whack.
That the United States stands apart is something Americans and Europeans have agreed on for a long time … Modern America has limited government, weak unions, high-powered incentives, capitalism red in tooth and claw. Post-war Europe has tax-and-spend, transport strikes, six-week vacations, and the welfare state. …Caricatures are well and good, but this one is just too much. In economic matters, America is far more like Europe, and Europe more like America, than either cares to admit. … health care … is America’s biggest social-policy exception …And it is marked for abolition. … . Consider regulation of business and finance. Few seem to question that the weight of regulation is less in the United States. In one area, anyway, this is true: Worker protections are weaker in America than in Western Europe … But think about product-safety regulation, or environmental regulation. … On regulation of corporate governance, Democrats are still calling for stricter rules … since Sarbanes Oxley, American financial and corporate regulation has been probably the most stringent and complex in the world.
…The unions are weaker here, it is said. To be sure, they have fewer members as a proportion of the workforce than in Britain, or (even more so) continental Europe. … proposed card-check legislation is expressly intended to slow and reverse the decline in union membership. This is a goal which few European governments would any longer think to embrace. In Britain it would be regarded as crazy … American unions remind me of the old-fashioned British kind. They seem anachronistically angry and assertive. … See what America’s unions have done to the auto industry. The Writers’ Guild just shut Hollywood down for several months. …I cannot think of a British union that any longer has that kind of muscle, or would think of exerting it if it did. In much of the rest of Europe, unions have become a quietly co-operative part of management more than militant champions of workers’ rights.
This piece by Felix Salmon on the problems that Gawker Media is encountering with pay-per-pageview is pretty interesting.
Golson’s take-home pay is so much larger than his base salary that his base salary ($2,500 a month) has become basically irrelevant. Instead, he’s been relying entirely on his PVR of $9.75 per thousand pageviews – a rate which has seen him taking home more than $4,000 a month so far this year. For Golson, then, his realistic base salary is in the $4,000 range – much higher than the $2,500 which Robischon is referring to. … The problem here could have been partially fixed if Robischon had decided to give Golson a more realistic base salary to begin with. But Robischon’s boss, Nick Denton, wants fixed salaries to be as low as possible: he hates it when a writer doesn’t justify his salary with pageviews, and the best way of ensuring that situation never arises is to make the fixed salaries as low as possible.
This PVR is being lowered, leading to a strong reaction from Golson and others. Salmon explains their anger in terms of psychological mechanisms such as loss aversion, which are indeed applicable. But I think that there are two other things going on, both of which have to do with the economics of piecework. And after all, paying people on the basis of the number of pageviews their articles receive is a glorified version of piecework. [click to continue…]
When last September Ronald Plasterk, the Dutch minister of Education, Culture and Science, who also holds emancipation in his portfolio, released his Policy Paper on Emancipation, he was criticized for not mentioning men at all. Basically his view is that women should be encouraged to perform more paid work so that they can be ‘financially independent’, and the government should provide the conditions for making this possible, for example by expanding the supply of formal child care facilities. I agree with the critics that what is missing is a vision of what fathers need to be offered, both as a matter of justice for fathers, but also as a precondition for women’s emancipation. So I would like to suggest to Mr. Plasterk, as a first and minimal step towards the inclusion of men in his emancipation policies, that he introduces the right for fathers of a minimum of 2 weeks of fully paid birthleave (and, of course, also for co-mothers in the case of lesbian parents). [click to continue…]
The brouhaha over freedom of speech below reminds me that I never got around to blogging about Bruce Barry’s very interesting book Speechless:The Erosion of Free Expression in the American Workplace (Powells, Amazon) which I read over the summer. I was sent it as a freebie because it has a chapter about blogging in the workplace, but found that I was grabbed by the general discussion of how few rights Americans have at the workplace. This is something that I had known in a general sort of way but hadn’t experienced personally (academics, at least tenure-track academics in good institutions, typically have it a lot better than most), and that was really brought home by Barry’s extended arguments and plethora of real-life illustrations. The book starts by discussing the experience of Lynne Gobbel, an Alabama factory worker.
Gobbel had a John Kerry bumper sticker. Her boss informed her that the owner of the factory, Phil Geddes, had demanded that she remove the sticker or be fired; he also told her “you could either work for him or John Kerry.” Geddes had on a previous occasion inserted a flyer in employee paycheck envelopes pointing out the positive effects that Bush’s policies as president were having on them. “It upset me and made me mad,” said Gobbel, “that he could put a letter in my check expressing his political opinion, but I can’t put something on my car expressing mine.”
This Dean Baker piece from a few days ago on how the New York Times misrepresents the German welfare state got some well deserved attention. While I wholeheartedly agree with Baker’s basic point, I think that he perhaps lets the economics profession off the hook a little too easily. [click to continue…]
I’ve just realised that as well as the new academic year for PhD programs, it’s also graduate intake season in the world of proper jobs, and thus a new generation of CT readers will be entering the workforce. And thus, my “Advice to a Young Person”. I only actually have one tip.
Basically it’s this. If you are a young man or woman of fair-to-middling ability, or even a borderline dullard, but you want to get a reputation as an uncommonly bright and perspicacious thinker, it’s really not that hard to do. The secret weapon is this: take an interest in what happens in other countries.
It’s really quite unusual to find an important issue on which international comparisons aren’t worth knowing about. Even in situations which look purely domestic, you can often get an entirely new perspective on things by looking at your fundamental assumptions in the light of what happens overseas. There are few sights sweeter than the look on someone’s face after they’ve confidently proclaimed something to be impossible, only to be informed that they’ve been doing things that way in Australia for the last twenty years.
It’s also a great way to generate ideas; it’s both easier than coming up with something yourself, and more likely to succeed, to plagiarise something that’s already worked well in a different time zone. So few people bother to keep up with the international news that one doesn’t even need to be an expert in these things; simply reading the relevant pages of your daily newspaper will probably do, whereas reading the superficially more “relevant” domestic or business pages will usually just tell you a load of crap you know already, and tell it wrong.
So my advice to a young businessperson is to save ten minutes a day by not reading the domestic news, and spend them on reading the international news properly. Within six months of the graduate program you’ll see I’m right, not least because at least once or twice you’ll quite likely be asked to prepared an analysis of international comparisons by a senior executive who got where he is by following my method.
Judith Warner wrote a column in yesterday’s NYT (unfortunately behind the pay-wall) on the need to make part-time work genuinely available for all American workers. She argues that study after study shows that up to 80% of mothers, both those holding jobs or caring at home, want to work part-time, but that currently only 24% do so because “part-time work doesn’t pay”:
Women on a reduced schedule earn almost 18 percent less than their full-time female peers with equivalent jobs and education levels, according to research by Janet Gornick, a professor of sociology and political science at City University of New York, and the labor economist Elena Bardasi. Part-time jobs rarely come with benefits. They tend to be clustered in low-paying fields like the retail and service industries. And in better-paid professions, a reduced work schedule very often can mean cutting down from 50-plus hours a week to 40-odd — hardly a “privilege” worth paying for with a big pay cut.
In the near future, CT will be hosting another book event. I thought it would be helpful to alert our readers ahead of time so people can read the book and thereby participate in the discussions more actively and in a more informed manner.
During the 1990s, growing demands to end chronic welfare dependency culminated in the 1996 federal “welfare-to-work” reforms. But regardless of welfare reform, the United States has always been home to a large population of working poor— people who remain poor even when they work and do not receive welfare. In a concentrated effort to address the problems of the working poor, a coalition of community activists and business leaders in Milwaukee, Wisconsin, launched New Hope, an experimental program that boosted employment among the city’s poor while reducing poverty and improving children’s lives. [The authors] provide a compelling look at how New Hope can serve as a model for national anti-poverty policies. [source]
Matt Yglesias agrees for once with Airmiles Friedman.
It’s really baffling that we would give someone a visa to pursue high-level education in the United States and then do anything other than automatically give them a visa to work here. If we’re going to be stingy with anything, it should be with spots at our universities (in practice, there tend not to be Americans clamoring to get graduate schooled in technical disciplines), not spots in our labor force. Unlike the immigration of unskilled workers, immigration of highly skilled people is a totally uncomplicated balance of considerations. It’s good for the immigrant, it boosts the American economy as a whole, and instead of putting mild downward pressure on the wages of the least-fortunate native born people, the costs are borne by better-off Americans. It’s a total no-brainer.
Not so. It may be a total no-brainer for US economic wellbeing. It isn’t a no-brainer for the home country of the workers in question. Cue Dani Rodrik, who thinks that a guest worker program would be ‘terrific,’ a point that he has developed at greater length in an earlier paper (PDF).
To ensure that labor mobility produces benefits for developing nations it is imperative that the regime be designed in a way that generates incentives for return to home countries.
While remittances can be an important source of income support for poor families, they are generally unable to spark and sustain long-term economic development. Designing contract labor schemes that are truly temporary is tricky, but it can be done.
This is the reason why, for example, people who come to the US to do advanced degrees with support from Fulbright scholarships (such as meself once upon a time) are obliged to return to their home countries (or, in the case of EU citizens, the EU) for a period of two years before they can apply for a proper work visa or permanent residency. Speaking from my personal experience, this can be a considerable pain in the ass, but it has an undeniable logic. The home country in question isn’t going to benefit very much from its most economically productive citizens (which category doesn’t include me; I was always likely to be a net drain on the Irish economy) going to the US to study, if they don’t ever come home. This point applies with especial force to people coming over to study for advanced degrees in technical subjects. I think it’s possible to construct a slightly convoluted cosmopolitanish case against temporary worker programs (this would have to do with labour standards and the need for strong unions in the US to mitigate the global deregulatory impact of US preferences on the world economic regime; I may lay this out in a later post). But I don’t think it’s possible to construct one against the kinds of programs that Matt favors here. So if you are solely concerned with the economic benefit of the US, it’s indeed a no-brainer. If you’re worried about the rest of the world too (or instead), it’s anything but.
I teach my last class of the semester tomorrow, and what a semester it’s been. In the four months since I gave up full-time, long-form solo blogging, I have put my extra time to good use: freed from the demands of daily blog posting and comment-section maintenance, I found time to work out every day for 90 minutes, meditate for an hour, cook dinner nightly, and brush up on my French. As a result, I am fit and sane and centered, enjoying a balanced diet and the consolations of the passé simple.
Actually, that’s not true. And Bourdieu didn’t really appear in Slap Shot, either. This semester, neither did I: my Nittany Hockey League teams had 28 games scheduled this semester. I made it to ten of those. I worked out once, maybe twice a week. I last meditated in 1999. I last cooked in 1994. (Janet and I have taken to asking each other, “whom shall we dial tonight?”) And my French is just as abysmal as it ever was.
Via Ezra Klein, I see that Jonah Goldberg has lapsed into what Ezra describes as a “weird revery over how the rugged individualism of Americans makes them totally unsuitable for social welfare programs.” In Goldberg’s own words:
I find interesting about the liberal defense of European welfare states (They really work! No Really!) is how they leave culture out of the equation almost entirely. … liberals are uncomfortable discussing the reality and constraints of culture for a host of reasons, from multiculturalism to vestigial hangups about seeing the world through prisms of class. … Maybe, just maybe, France and Denmark can handle the systems they have because they have long traditions of sucking-up to the state and throne? Marty Lipset wrote stacks of books on how Canadians and Americans have different forms of government because the Royalist, throne-kissing, swine left America for Canada during the Revolutionary War and that’s why they don’t mind big government, switched to the metric system when ordered and will wait on line like good little subjects…. If government systems are the only variable, or even the most important and decisive one, then how come it’s so damn hard bringing third world countries into the first world?
Now it’s a bit rich for a National Review hack to be talking smack about “long traditions of sucking-up to to the state and throne.” But even if we were to pretend for a moment that Goldberg’s argument is serious, it’s terrible. First of all, it gets Lipset’s thesis badly wrong. While Lipset was keen on enduring American values, he didn’t pretend for a moment that they were the only force shaping US politics. Indeed, he explicitly documented how American values became more ‘European’ as a result of the institutional innovations of the New Deal (funnily enough, Goldberg seems to have missed that bit in his doubtless extensive reading on the topic). But more generally, sweeping claims about the all-determining-power of fixed national cultures have a godawful reputation in the social sciences these days. Values change, and sometimes change dramatically. Individuals are more than the passive bearers of cultural traits; they, like, make choices, and sometimes change their minds about things. The institutions that surround them change, and when these institutions change, so too, very often, do political beliefs, values etc.
There are respectable and serious scholars out there, who make more limited and specific contentions about how culture matters to politics (I tend not to agree with many of their arguments, but I obviously don’t have a monopoly on the truth). However, sweeping, half-assed claims that Culture is Destiny simply don’t feature in serious argument any more. Instead, they enjoy a sort of zombie-like half-life in some corners of the rightwing punditocracy, where their explanatory deficiencies are outweighed by their political usefulness in providing a higher justification for selfishness. Which is what seems to me to be happening here.
Ted Moran and Gary Hufbauer contemplate the unthinkable in the Financial Times; a world in which the US actually had to live up to basic International Labour Organization standards. [click to continue…]
Tyler Cowen has a “new post”: which clarifies why he objects to pro-union legislation.
Labor-run firms are common in law, book agency, real estate, landscaping, and many other sectors; we even see them in airlines. When labor in charge creates more value, labor starts its own firms or buys out the capitalist or buys greater control rights. Growing capital markets make these evolutions easier all the time. Cooperatives, which are governed by consumers, also are found. Mutuals, non-profits, and yes unionized firms are common too. I heart all of these organizational forms. Keep in mind that if both workers and customers will be better off, yes it probably can happen; it is naive to think that liquidity problems are the major issues preventing workers from enjoying greater control rights. In the short run, the mental model of the left-wing bloggers is a bunch of janitors trying to get better working conditions but opposed by employers. In the longer run what is striking is the competition across different organizational forms. It doesn’t always make sense to give labor residual control rights over capital goods, or the right to halt production.
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