The Political Economy of Work in the 21st Century : Implications for an Aging American Workforce

When Congress enacted Social Secuirty in 1935, with the age of retirement set at age 65, average life expectancy was 62 years. By the time Medicare was enacted 30 years later, life expectancy had risen to age 70. Since the enactment of Medicare, life expectancy has risen to age 76 today and may be expected to increase further in the decades to come. Clearly, the increase in post-retirement life expectancy has significant implications for the level of national expenditures attributable to an aging population. One of the approaches suggested as a solution to the so-called income transfer problem is to redefine old age, that is, to push retirement and its associated benefits off to a later age. This would effectively increase the size of the workforce, with older workers continuing to contribute their payroll taxes for an extended period of time. The critical question Sicker poses is, will there be enough appropriate employment opportunities for a growing number of older workers in the workforce of the future? The evidence for a positive response is far from clear or compelling. Sicker examines the prospective place of the aging worker in the employment environment of the 21st century in light of the restructuring of American business and the world of work in the final decades of the last century. In doing so, he raises serious concerns about the validity and utility of some of the neoclassical economic ideas and assumptions that have become part of the conventional wisdom of our time. Sicker contends that these dubious propositions have unwittingly contributed signficantly to the problem through their manifestation in public policy. However, the principal focus of his analysis is not on economic theory as such, but on the realities and uncertainties that an aging American workforce will face in the decades to come. This book is significant reading for scholars, researchers, and the general public interested in labor force and aging policy issues. The prospective place of the aging worker in the employment environment of the 21st century is examined. The following are among the specific topics discussed: (1) the real world of work and retirement; (2) the changing employment environment; (3) the restructuring of business in the United States; (4) globalization and the economy; (5) downsizing and its consequences; (6) the decline of corporate paternalism; (7) restructuring of the workforce; (8) downwaging of the workforce; (9) the question of minimum wage; (10) trends in corporate responsibility; (11) national employment policies; and (12) national economic policies. Key points emerging from the book are as follows: (1) the quintessential problem to be addressed is that of the declining opportunities for well-compensated employment, which in turn leads to fewer customers to purchase the goods and services produced by businesses; (2) acknowledging that society is facing a serious problem is the first step toward solving it; and (3) the United States needs a new mindset to compete and must therefore rethink education and training practices, determine how to get a long-term vision from corporate managers, respond to changing relationships between labor and management, reexamine the relationship between government and business, and find new ways of doing business in a global economy. There are 178 references. (MN) Given the centrality of work in our lives as individuals and collectively as a society and nation, it is rather surprising that relatively little public attention is directed to the manner and extent to which work and employment influence our social as well as economic well-being. Annotation Examines the realities and uncertainties the aging American work force will face in the employment environment of the 21st century