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Institutional Failure and the American Worker, The Collapse of Low-Skill Wages

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  • David R. Howell

Abstract

Howell argues that the collapse of low-skill wages in the United States cannot be explained by a skill mismatch resulting from a technology-driven decline in the for low-skill labor. He presents evidence refuting the prevailing belief that a substantial shift in demand away from low-skill work characterized the 1980s. He asserts that a more compelling explanation for the growing wage gap can be found in fundamental changes in the institutions, practices, and norms that determine labor market outcomes--a return to a confrontational attitude toward labor by management, a shift to a laissez-faire approach to regulatory and redistributive functions by government, and management's adoption of low-road strategies to cut labor costs in response to competitive pressures.

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  • David R. Howell, "undated". "Institutional Failure and the American Worker, The Collapse of Low-Skill Wages," Economics Public Policy Brief Archive ppb_29, Levy Economics Institute.
    • Handle: RePEc:lev:levppb:ppb_29
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    Cited by:

    1. Harold Salzman, 1998. "Restructuring and Skill Needs: Will Firms Train?," The ANNALS of the American Academy of Political and Social Science, , vol. 559(1), pages 125-140, September.
    2. Wolff, Edward N., 2002. "The impact of IT investment on income and wealth inequality in the postwar US economy," Information Economics and Policy, Elsevier, vol. 14(2), pages 233-251, June.

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