Economic Theories of Low-Wage Work

This article examines economic theories of the low-wage labor market to increase understanding of economic inequality and poverty in the United States, particularly related to the labor market. On the one hand, neoclassical, labor monopsony, and Harris-Todaro models explain how minimum wage policies are related to supply and demand of labor, human capital, employment, and unemployment. On the other hand, the efficiency wage model, the dual labor market theory, and technology development and globalization account for the causes of the wage differentials. This article includes a conceptual map that illustrates the interrelationships between these economic theories of low-wage work.     

Measuring employment vulnerability in Europe

Two of the most notable trends in labour markets in Europe are the rise in the number of atypical job contracts (e.g. fixed‐term contracts and temporary work) and the increase in job turnover. The concept of “employment vulnerability” can be used to describe these trends, which weaken the employer–employee relationship. In this article, the authors measure this employment vulnerability, for individual European countries, by creating two indices – an “employer‐related vulnerability index” and a “job‐related vulnerability index” – which are then aggregated to form an overall employment vulnerability index.     

Three scenarios for the future of work

After presenting a historical overview of the concept of work and the different meanings that it has acquired over the centuries, the author analyses the value it holds for Europeans, and the impact on work and employment of the popular rhetoric about a technological revolution and its “inevitable” consequences. She then considers the future of work in the light of three scenarios: a “dismantling of labour law”, a “technological revolution” (where automation brings an end to employment), and an “environmental transition”. She argues that the latter is compatible with the imperative to take action on climate change and the expectations placed in work and employment.     

Sociological Theories of Low-Wage Work

This review addresses the use of sociological theories in the examination of low-wage work. Due to the vast volume of literature on this topic, only theories that help to explain the dynamics of low-wage work are described, along with the differences and controversies surrounding these theories. These theories are divided into four topic areas related to theories of work, racial and gender theories, immigration theories, and intersectionality theory. The theories of work include different models of wage determination, namely, functional, conflict, and structural models. The review concludes with a conceptual map that illustrates how these theories can inform and guide practice.     

Anthropological Theories of Low-Wage Work

This review assesses the use of anthropological theories in the examination of low-wage work. Due to the vast differences existing between different cultures in low-wage work, this review focuses on theories that have been applied in Western, and mainly American, contexts. There are primarily three fields from which this literature is drawn: economic anthropology, gender and race anthropology, and theories of power—the last integrates all these theories. Differences and controversies over the applicability of these theories are also highlighted. The review concludes with a conceptual map describing the interrelatedness of these theories and how they explain the realities of low-wage workers.     

Informal employment: Two contested policy issues

This article addresses two contested issues of crucial importance to policy, namely: formal labour regulations as a cause of informal employment, and so‐called “voluntary” informal employment. The authors provide theoretical overviews on both issues and an extensive survey of empirical studies on the effects of formal labour regulations on informal employment. The article closes with observations on the relevance of the ILO's four decent work objectives for informal employment and economic development, with particular emphasis on the significance of – and potential for – organizing workers in the informal economy.     

Searching for Local Solutions: Making Welfare Policy on the Ground in Ontario

Over recent decades welfare dependency has played a powerful role in defining the welfare “problem” and in passing appropriate “solutions.” One result has been the proliferation of short-term, low-cost employment programs and training programs that have emerged as critical sites for challenging and reforming the attitudes and behaviors of welfare recipients. By exploring work-readiness programs in four communities in Ontario, Canada, we provide insight into how these programs relate to the lived realities of those compelled to attend them. The research shows how dependency discourse informs program rules and content, raising expectations about both the benefits and the immediacy of work. This focus risks individualizing blame and ignoring the structural realities of labor markets and the systemic forces that create poverty and unemployment. Although the particular empirical focus is on Ontario, the approaches used and their outcomes resonate with strategies that are evident wherever neoliberalism has made its mark.     

Ungrateful slaves? An examination of job quality and job satisfaction for male part-time workers in the UK

Research on part-time work has concentrated over many decades on the experiences of women but male part-time employment is growing in the UK. This article addresses two sizable gaps in knowledge concerning male part-timers: are men's part-time jobs of lower quality than men's full-time jobs? Are male part-timers more or less job-satisfied compared to their full-time peers? A fundamental part of both interrogations is whether men's part-time employment varies by occupational class. The article is motivated by the large body of work on female part-timers. Its theoretical framework is rooted in one of the most controversial discussions in the sociology of women workers: the “grateful slave” debate that emerged in the 1990s when researchers sought to explain why so many women expressed job satisfaction with low-quality part-time jobs. Innovatively, this article draws upon those contentious ideas to provide new insights into male, rather than female, part-time employment. Based upon analysis of a large quantitative data set, the results provide clear evidence of low-quality male part-time employment in the UK, when compared with men's full-time jobs. Men working part-time also express deteriorating satisfaction with jobs overall and in several specific dimensions of their jobs. Male part-timers in lower occupational class positions retain a clear “lead” both in bad job quality and low satisfaction. The article asks whether decreasingly satisfied male part-time workers should be termed “ungrateful slaves?” It unpacks the “grateful slave” metaphor and, after doing so, rejects its value for the ongoing analysis of part-time jobs in the formal labor market.     

Fitting it all in: how mothers' employment shapes their school engagement

Although incompatibilities between work and home life are well studied, less is known about the implications of employment for another key life role, particularly for working mothers: being a ‘school-engaged parent’. Using data from in-depth interviews with 17 employed mothers in a mid-size Midwestern city, recruited from a diverse sample of 95 survey-taking parents, we examined the mechanics of how mothers' employment conditions shaped their involvement in their children's schools. We observed patterns between occupational status – professional and low-wage jobs, particularly – and when and how mothers engaged. Some with job schedule flexibility and paid time off were more often and easily able to participate in school activities, while others faced barriers to or negative consequences from using such supports. Several mothers lacked any time-related accommodations from their jobs. Yet all mothers pushed themselves to be involved, even as they had to make hard calculations about their work lives to do so. The findings extend research on the ‘life’ side of work–life research and point to the limits of U.S. education reform's emphasis on family engagement, suggesting that varied bundles of employment conditions stratify parents' school participation in ways that may be difficult for schools to accommodate.     

What Explains the Decline in First Marriage in the United States? Evidence from the Panel Study of Income Dynamics, 1969 to 2013

Rates of entry into first marriage have declined sharply in the United States during the past half century, and there is evidence of broad gaps in marriage entry by race and education. Although a large literature explores the influences on marriage for single cohorts, there is little research that tests explanations for this decline across multiple cohorts. The authors use individual and contextual measures of employment and incarceration to predict transitions to first marriage in the Panel Study of Income Dynamics (1969–2013). They test two prominent theories of why marriage rates have declined: the decreased availability of “marriageable” men and the increased economic standing of women. They find that men's reduced economic prospects and increased risk of incarceration contributed to the decline in first marriage rates during the past 45 years in the United States, although these basic measures of economic and carceral conditions cannot explain the entire decline.     

Employee perceptions of the effects of a two-tier wage structure

This exploratory study examines three research questions related to employees’ perceptions concerning the effects and purposes of a permanent two-tier wage structure in their employment setting. Although much of the popular literature on employee dissatisfaction with tiers has focused on low-wage tier employees, the results of this study indicate overall dissatisfaction with the effects of tiers amongboth high- and low-wage tier employees. Financial support for this study was provided by the W.E. Upjohn Institute for Employment Research in Kalamazoo, Michigan, and the Master of Arts in Industrial Relations Program at Wayne State University.     

Laboring Underground: The Employment Patterns of Hispanic Immigrant Men in Durham, NC

The dramatic increase in Hispanic immigration to the United States in recent decades has been coterminous with fundamental shifts in the labor market towards heightened flexibility, instability, and informality. As a result, the low-wage labor market is increasingly occupied by Hispanic immigrants, many of whom are undocumented. While numerous studies examine the implications for natives' employment prospects, our understanding of low-wage immigrants themselves remains underdeveloped. Drawing on original data collected in Durham, North Carolina, this article provides a more holistic account of immigrant Hispanic's labor market experiences, examining not only wages but also employment instability and benefit coverage. The analysis evaluates the role of human capital and immigration characteristics, including legal status, in shaping compensation outcomes, as well as the influence of other employment characteristics. Findings highlight the salience of nonstandard work arrangements such as subcontracting and informal employment to the labor market experiences of immigrant Hispanic men, and describe the constellation of risk factors that powerfully bound immigrant employment outcomes. Keywords: Hispanic; immigration; wages; low-wage labor market; employment relations.     

A Davis-Bacon musicale: Symphony orchestras as migrant labor

One of the original arguments in support of the Davis-Bacon Act was that local construction labor would be protected from wage-busting on federal projects by “ruthless non-local contractors” using low-wage, itinerant labor. A related, current claim is that Davis-Bacon prevents lower quality non-local firms from winning contracts by underbidding local labor; thus, Davis-Bacon helps to ensure the quality of construction. This paper first evaluates whether the use of itinerant non-local firmsnecessarily results in lower quality output. Using the “traveling” symphony orchestra as an analogy, the answer is clearly “no.” Second, if higher quality output may be produced by non-local firms, is this likely to happen in construction? Third, does a Davis-Bacon type of wage floor ensure that local projects will be built by local firms or crews?     

To work or not to work: Variables affecting non‐financial employment commitment over time

The most common indicator of non‐financial employment commitment (NFEC) is the “lottery question” – whether a person would continue working if they won a lottery. This cross‐sectional research seeks to identify the demographic variables and the “meaning of work” dimensions that could predict individual NFEC, presenting the main international findings over time, with particular reference to data collected in Israel in 1981, 1994 and 2006. The authors' findings point to a marked decrease in NFEC in the new millennium and a change in its predictors over time. The findings and their implications for work and employment are examined in the light of social and economic changes in Israel.     

Courtesy Stigma and the ADA

Abstract

A seldom-discussed element of the Americans with Disabilities Act (ADA) of 1990 provides a degree of employment protection to the relatives and close associates of persons with disabilities, if these relatives or associates have been subject to adverse employment action because of this relationship. This paper describes this “third-party discrimination,” and analyzes important court cases related to it.     

Regulation and the future of work: The employment relationship as an innovation facilitator

Digital transformation and the reorganization of the firm have given rise to new forms of work that diverge significantly from the standard employment relationship. Advocates of digital disruption suggest that the existing legal framework cannot accommodate “innovative” working templates and business models. This article, however, argues that labour regulation can continue to facilitate innovation, presenting the employment relationship as a flexible instrument, and standard forms of employment as the means of achieving efficiencies and cost advantages. First, they allow for the full exercise of managerial prerogative and attendant internal flexibility in workforce deployment, and, second, they constitute an effective device to deliver training and develop skills.     

Explaining differences in the political meaning of unemployment across time and space

This article is a first attempt at theorizing the differences in the political meaning of unemployment and how governments create these differences. It first reviews existing explanations about why unemployment is an especially pressing political threat to those in power. In lieu of a an existing literature on the sources of variation in this threat, the next section puts forward four alternative explanations based on related arguments about politics and the economy. These are the approaches of power resources, protest mobilization, deprivation, and ideology. Guided by the promises and pitfalls of these respective theories, the subsequent section argues for an alternative institutional-constructivist approach. Starting with the historical observation that the category of unemployment was invented alongside particular social institutions and employment practices, this approach seeks to explain how variation in these institutionalized practices is responsible for differences in the political salience of unemployment. The section that follows discusses how government policies can reconstruct the meaning of unemployment by reconfiguring the available set of institutional choices in the labor market and by designating what kinds of choices constitute involuntary joblessness. It is argued that “unemployment” is defined against institutionalized norms of what kinds of work constitute “employment.” Changes in the boundaries of the concept of unemployment come about through changes in the ways that governments hold certain kinds of work as exemplary while granting other forms of work lesser recognition. The final section considers how this reciprocal relationship between the construction of unemployment and employment both imposes political constraints for governments and creates opportunities. Governments face numerous conflicting incentives whether to expand or restrict the institutionalized definition of unemployment. While they must retain semblance with inherited conceptions of unemployment; they can redefine the problem of unemployment through the institutionalization of new solutions.     

The relationship between youth employment and older persons' employment in 20 OECD countries

Inspired by the “lump of labour” theory, a large number of OECD countries have encouraged the expansion of early retirement policies in response to rising unemployment since the 1970s. In reality, however, youth employment is found to be positively correlated with older persons' employment, although this is simply the overall finding for all OECD countries because most studies estimate average effects. Less is known about diversity in the relationship between youth employment and the employment of older workers. In order to help fill the research gap in this area, this study explores the heterogeneity of that relationship across 20 OECD countries.     

Diskontinuität im Erwerbsverlauf und betrieblicher Kontext

The influence of the firm and the former work life on the probability to interrupt one’s current employment between 1993 and 1995 is analyzed. For reconstructing individual work lifes, we use data from the “German Employment Statistic Register Sample 1975–1995” of the Institute of Employment Research (IAB). Characteristics of the firm were taken from the “firm panel” (Betriebspanel) of the same institution between 1993 and 1995. Both samples were merged to create a “linked employer-employee” data-set. Therefore, firm related variables like number of employees, economic situation and industry are independent of individual characteristics. In our empirical model we included the change of the employer, the interruption of work and unemployment as competing risks. Our analysis shows that the former work life has an independent influence on the risk of interrupting work or to become unemployed between 1993 and 1995. Furthermore, qualified persons who experienced job shifts within their last firm and who are employed by larger employers which invest in their employees have a greater probability to move directly to another employer. In sum, our results indicate a “reproduction” of discontinuous employment patterns over the work life.     

Economic growth,labour flexibilization and employment quality in Colombia, 2002–11

Over the period 2002–11, the Colombian labour market saw a marked improvement in employment opportunities, accompanied by an increase in nonstandard forms of employment. The authors look at how this affected employment quality, using a composite index based on Categorical Principal Components Analysis (CATPCA). They observe a small but widespread improvement in employment quality – mainly for self‐employed women – brought about by higher earnings, increased social protection and less time‐related underemployment. However, a considerable “quality deficit” remains, which calls for policies to strengthen labour market institutions and stimulate productivity and investment.