Divergent Paths: Economic Mobility in the New American Labor Market: Economic Mobility in the New American Labor Market

The promise of upward mobility--the notion that everyone has the chance to get ahead--is one of this country's most cherished ideals, a hallmark of the American Dream. But in today's volatile labor market, the tradition of upward mobility for all may be a thing of the past. In a competitive world of deregulated markets and demanding shareholders, many firms that once offered the opportunity for advancement to workers have remade themselves as leaner enterprises with more flexible work forces. Divergent Paths examines the prospects for upward mobility of workers in this changed economic landscape. Based on an innovative comparison of the fortunes of two generations of young, white men over the course of their careers, Divergent Paths documents the divide between the upwardly mobile and the growing numbers of workers caught in the low-wage trap. The first generation entered the labor market in the late 1960s, a time of prosperity and stability in the U.S. labor market, while the second generation started work in the early 1980s, just as the new labor market was being born amid recession, deregulation, and the weakening of organized labor. Tracking both sets of workers over time, the authors show that the new labor market is more volatile and less forgiving than the labor market of the 1960s and 1970s. Jobs are less stable, and the penalties for failing to find a steady employer are more severe for most workers. At the top of the job pyramid, the new nomads--highly credentialed, well-connected workers--regard each short-term project as a springboard to a better-paying position, while at the bottom, a growing number of retail workers, data entry clerks, and telemarketers, are consigned to a succession of low-paying, dead-end jobs. While many commentators dismiss public anxieties about job insecurity as overblown, Divergent Paths carefully documents hidden trends in today's job market which confirm many of the public's fears. Despite the celebrated job market of recent years, the authors show that the old labor market of the 1960s and 1970s propelled more workers up the earnings ladder than does today's labor market. Divergent Paths concludes with a discussion of policy strategies, such as regional partnerships linking corporate, union, government, and community resources, which may help repair the career paths that once made upward mobility a realistic ambition for all American workers. The Promise Of Upward Mobility - The Notion That Everyone Has The Chance To Get Ahead - Is One Of This Country's Most Cherished Ideals, A Hallmark Of The American Dream. In Today's Volatile Labor Market, The Tradition Of Upward Mobility May Be A Thing Of The Past. In A Competitive World Of Deregulating Markets And Demanding Shareholders, Many Firms That Once Offered The Opportunity For Advancement To Workers Have Remade Themselves As Leaner Enterprises With More Flexible Work Forces. Divergent Paths Examines The Prospects For Upward Mobility For Workers In This Changing Economic Landscape. Based On An Innovative Comparison Of The Fortunes Of Two Generations Of Young, White Men Over The Course Of Their Careers, Divergent Paths Documents The Divide Between The Upwardly Mobile And The Growing Numbers Of Workers Caught In The Low-wage Trap.--jacket. The New Labor Market -- An Introduction To The National Longitudinal Survey Cohorts -- The Transition Into The Labor Market -- Rising Job Instability -- The Short-term Consequences Of Instability -- Declines In Long-term Economic Mobility -- The Growth In Low-wage Careers -- Policies To Restore The American Dream -- Variable Definition And Construction -- Validation And Attrition Analysis For Job Change Measure -- Relative Distribution Methods -- Permanent Wage Estimation. Annette Bernhardt ... [et Al.]. Includes Bibliographical References And Index. The changes in career development and upward mobility in response to recent changes in the U.S. labor market were examined in a study that included an analysis of data from the National Longitudinal Survey of Young Men and the National Longitudinal Survey of Youth. Analysis of the data, which covered the period 1966-1994, established that the transition into the labor market has changed noticeably. Young people are taking longer to complete their schooling, are significantly more likely to work while in school, and are more likely to hold service sector rather than goods-producing jobs once out of school. Wage attainment has deteriorated, and job instability has increased. Economic mobility has declined and become more unequal, and the prevalence of low-wage careers has increased from 12% in the original cohort to 28% in the recent cohort. The following policy strategies were recommended as ways of restoring the "American dream": constructing external career ladders; constructing or strengthening internal career ladders; improving low-wage jobs; and improving labor market coordination. Information about the following items is appended: variable definitions and construction; validation and attrition analysis for the job change measure; relative distribution measures; and permanent wage estimation. (Contains 78 tables and 221 references.)(MN) Cover Title page, Copyright, Editorial series Contents About the Authors Acknowledgments Chapter 1. The New Labor Market Chapter 2. An Introduction to the National Longitudinal Survey Cohorts Chapter 3. The Transition into the Labor Market Chapter 4. Rising Job Instability Chapter 5. The Short-Term Consequences of Instability Chapter 6. Declines in Long-Term Economic Mobility Chapter 7. The Growth in Low-Wage Careers Chapter 8. Policies to Restore the American Dream Appendix A - Variable Definition and Construction Appendix B - Validationand Attrition: Analysis for Job Change Measure Appendix C - Relative Distribution Methods Appendix D - Permanent Wage Estimation Notes References Index