Study Guide Labor 1 Exam

Question 1

What are the 3 possible definitions of low wage ?

Answer 1

1. Federal poverty line
2. An inequality measure
   3 a basic needs measure

Question 2

What are pros of an inequality measure ? (3)

Answer 2

1. Has an important practical advantage when used to access low-wage work at the national level
2. Doesn’t vary by family size
3. Easier to establish basic standards like minimum wage

Question 3

What are cons of an inequality measure ? (1)

Answer 3

1. It doesn’t take account of the income a family actually requires to live

Question 4

What are pros of a basic needs measure? (3)

Answer 4

1. It accurately measures the wage needed to afford a basic standard of living
2. It incorporates actual costs of living from today’s economy (which represents a larger share of basic household budgets that they did when the poverty line was developed)
3. It more accurately represents what’s needed to live in areas other than rural areas (where the budgets are closer to the poverty line)

Question 5

What are cons of basic needs measure ? (1)

Answer 5

1. It does not directly incorporate rising inequality in the US (which reflects that a substantial segment of workers have dropped to poverty)

Question 6

If you were a policy maker who supported “social inclusion” as presented in class, which definition of “low-wage” would you support?
Why?

Answer 6

• Basic needs measure
• social inclusion allows for the ability of people to participate fully in society and that a set of basic needs are met. Basic need measure sees that basic needs are all met.

Question 7

Would you be more likely to adopt this definition if you had a job working in a policy position for the US government or Canada ?

Answer 7

No , Canada already has strong labor standards, universal health, social protection, and few low-wage jobs. There would be a need for a new definition to be put into place. For the US government you already have a stable job so there is no need to adopt a basic needs measurement.

Question 8

What are cons of the federal poverty line?

Answer 8

1. May or may not give benefits to low-wage families that need them

Question 9

When was the old economy developed and when did it come to an end ?

Answer 9

The old economy developed in the wake of the industrial revolution and ended in the mid-twentieth century

Question 10

When was the new economy developed and has it ended ?

Answer 10

New economy began when the old economy ended , toward the mid-twentieth century and is still present

Question 11

What type of work was dominated and how was it assigned and structured during the old economy ?

Answer 11

It saw mostly mass production, gendered divisions of labor, & unionized labor. Work was assigned predominately to anyone who could do it and was capable of doing the requirements that came a long with the job.

Question 12

What type of work is dominated and how is it assigned and structured in the new economy ?

Answer 12

New economy aide sees

Question 13

What was the role of the old economy ?

Answer 13

During the old economy the US was a central and dominating force to the worlds economy.

Question 14

What is the role of the new economy ?

Answer 14

The US has fallen behind compared to other countries. The economy is not as strong now as it was during the old economy.

Question 15

How did work opportunity change in the old economy vs the new economy ?

Answer 15

During the time of the old economy, funding work was much easier and did not require certain skills to do. In the new economy it is much harder to find jobs then it was in the old. A college degree is required along with the skills needed to do the job.

Question 16

Were all jobs secure like they are today ? Why?

Answer 16

Jobs are not secure today because

Question 17

How did the US approach managing jobs risk differ from European countries during the old economy , example in the UK ?

Answer 17

The US had more of a hands off approach, while in European countries there was adopted entitlements

Question 18

What adopted entitlements were used in European countries ? (6)

Answer 18

1. Unemployment assistance
2. Disability insurance
3. Sickness and old age insurance
4. Housing assistance
5. Family leave
6. Child care

Question 19

What measures did the US government and unions put in place to help manage job insecurity ? (2) And what did they do?

Answer 19

1. They adopted social security which introduced supports for those who cannot work, the elderly, the disabled, and some children
2. The fair labor standard act which implemented workplace regulations including short term unemployment insurance

Question 20

Why is job insecurity expanding now ? (6)

Answer 20

1. Workers with jobs in the primary labor market are less secure than in the past
2. Volatile economy and efforts to shrink governments economic role reduced governments economic policies that may help mitigate the impact of job loss
3. American society has increasingly shifted “risk” onto employees.
4. The number of people who suffer sudden losses in income have grown significantly
5. Changing composition of the labor force also looked at as the rise of dual-earner families
6. Changing organization of work and it’s easy to replace people for jobs due to the demand

Question 21

Define and describe culture, one of the 3 forces that shape work opportunity in America?

Answer 21

Culture: systems that attach individuals to work and it harnesses their commitments and direct efforts

Question 22

Define and describe social structure, one of the 3 forces that shape work opportunity in America?

Answer 22

Opportunities and constraints that shape what type of jobs can be pursued, by whom and the returns received

Question 23

Define and describe agency, one of the 3 forces that shape work opportunity in America?

Answer 23

Personal effort and discretion, whether as individuals or in groups, to direct actions and decisions

Question 24

How do the three forces (culture, social structure and agency) interact with each other ?

Answer 24

When they interact, scientific management is created. It separates thought from execution and the work force was deskilled. The division between workers and management created distrust.

Question 25

How do the three forces (culture, social structure and agency) possibly differ in the US from other countries ?

Answer 25

These forces differ in other countries since other counties have different cultures with different cultures with different characteristics for everyday life, the governments will have different polices for work, and people in other countries could see work as not as important as it is seen in the US

Question 26

Describe in detail the specific aspects of social structure that might influence work opportunity in the new economy . (3)

Answer 26

1. Social class
2. Job markets - new economy has refined skill needs, reshaped job demands, introduced new rewards, imposed new burdens on worker lives, and job opportunities are less tied to space and time
3. Labor force demographics

Question 27

Has income inequality from the old economy to the new economy changed?

Answer 27

Yes

Question 28

What impact has the new economy had on income inequality ?

Answer 28

The new economy has brought the service economy which has produced a more polarized work force. Which are highly paid jobs that require more then just the ability to do a certain job

Question 29

Explain what the dual labor market is and how it can be used to answer how the new economy has helped income inequality change?

Answer 29

Dual labor economy consists of two markets . The primary and secondary market. The primary market offer higher pay, predictable career paths, opportunities and enhanced job security. The secondary market off low pay, unstable opportunities, low job security and limited expansion/ growth. It’s making job insecurity worse creating a larger gap between the primary and secondary market because high level jobs are benefiting off of productivity while lower paid jobs are staying with low paid wages

Question 30

Describe in detail the specific aspects of social structure that might influence work opportunity in the new economy . (3)

Answer 30

1. Social class
2. Job markets - new economy has refined skill needs, reshaped job demands, introduced new rewards, imposed new burdens on worker lives, and job opportunities are less tied to space and time
3. Labor force demographics

Question 31

Has income inequality from the old economy to the new economy changed?

Answer 31

Yes

Question 32

What impact has the new economy had on income inequality ?

Answer 32

The new economy has brought the service economy which has produced a more polarized work force. Which are highly paid jobs that require more then just the ability to do a certain job

Question 33

Explain what the dual labor market is and how it can be used to answer how the new economy has helped income inequality change?

Answer 33

Dual labor economy consists of two markets . The primary and secondary market. The primary market offer higher pay, predictable career paths, opportunities and enhanced job security. The secondary market off low pay, unstable opportunities, low security

Question 34

What is the productivity gap?

Answer 34

The productivity pay gap is the gap between productivity and minimum wage. Productivity has gone up 77% while minimum wage has only gone up 12% since 1973.

Question 35

How does the productivity gap help explain income inequality and how it might have changed under the new economy?

Answer 35

It explains how income inequality has gotten worse since minimum wage hasn’t gone up and productivity has , making people in the primary market getting more and more money.

Question 36

“Welfare queen”- describe why this is just a myth and what the reality is regarding who the poor are in America.

Answer 36

The welfare queen is a myth about who receives aid from the government. The main gist of the myth is that single mothers kept having children and were ripping off taxpayers by seeking welfare benefits. The poor are classified as the underclass. In reality, the actual poor were 2/3 white, and 3/4 of black people were not poor .

Question 37

Explain what changes were made to the welfare system because of stereotypes like this. What was the justification for such changes.

Answer 37

1.Ending welfare as an entitlement program
2.requiring recipients to being working after two years of receiving benefits,
3.placing lifetime limit of five years on benefits paid by federal funds
4. aiming to encourage two-parent families and discouraging out-of-wedlock births
5. enhancing Enforcement of child support
6. Requiring state professional and occupational licenses to be withheld from illegal immigrants
The justification for these changes was the myth of the welfare queen being pushed in order to pass the reform

Question 38

According to Zweig, who are the poor?

Answer 38

The poor are mostly working class people who either cannot find a “good job” but not because they aren’t looking or are working but make so little money they can’t afford to make ends meet

Question 39

What are pros of the federal poverty line ?

Answer 39

Provides a safety net to those that are incredibly poor in our society and makes sure they have the basic resources to service