Bad Jobs on the Rise
AbstractThe decline in the economy’s ability to create good jobs is related to deterioration in the bargaining power of workers, especially those at the middle and the bottom of the pay scale. The restructuring of the U.S. labor market – including the decline in the inflation-adjusted value of the minimum wage, the fall in unionization, privatization, deregulation, pro-corporate trade agreements, a dysfunctional immigration system, and macroeconomic policy that has with few exceptions kept unemployment well above the full employment level – has substantially reduced the bargaining power of U.S. workers, effectively pulling the bottom out of the labor market and increasing the share of bad jobs in the economy. In this paper, we define a bad job as one that pays less than $37,000 per year (in inflation-adjusted 2010 dollars); lacks employer-provided health insurance; and has no employer-sponsored retirement plan. By our calculations, about 24 percent of U.S. workers were in a bad job in 2010 (the most recently available data). The share of bad jobs in the economy is substantially higher than it was in 1979, when 18 percent of workers were in a bad job by the same definition. The problems we identify here are long-term and largely unrelated to the Great Recession. Most of the increase in bad jobs – to 22 percent in 2007 – occurred before the recession and subsequent weak recovery.
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Bibliographic InfoPaper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2012-23.
Length: 20 pages
Date of creation: Sep 2012
Date of revision:
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good jobs; bad jobs; retirement; pensions; health insurance; wages; labor; education;
Find related papers by JEL classification:
- J - Labor and Demographic Economics
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- J1 - Labor and Demographic Economics - - Demographic Economics
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- I - Health, Education, and Welfare
- I2 - Health, Education, and Welfare - - Education
- I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-16 (All new papers)
- NEP-HME-2012-09-16 (Heterodox Microeconomics)
- NEP-IAS-2012-09-16 (Insurance Economics)
- NEP-LAB-2012-09-16 (Labour Economics)
- NEP-LMA-2012-09-16 (Labor Markets - Supply, Demand, & Wages)
- NEP-PKE-2012-09-16 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Schmitt, 2005. "How Good is the Economy at Creating Good Jobs?," CEPR Reports and Issue Briefs 2005-33, Center for Economic and Policy Research (CEPR).
- Hye Jin Rho & John Schmitt, 2010. "Health-Insurance Coverage Rates for US Workers, 1979-2008," CEPR Reports and Issue Briefs 2010-06, Center for Economic and Policy Research (CEPR).
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