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Wage Polarisation in the U.S. and the 'Flexibility' Debate

Author

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  • Harrison, Bennett
  • Bluestone, Barry

Abstract

The proportion of workers earning low wages in the American economy declined from 1963 through 1979. Since 1979, both the low-wage and the high-wage shares of employment have increased, leading to wage polarization. Analysis of Current Population Survey data indicates that this occurred for both men and women. For men, this condition has been exacerbated by a secular stagnation in real median wages. These empirical developments in the distribution of labor income are analyzed in detail and discussed in light of theoretical debates about employers' attempts to increase labor "flexibility" under the pressure of declining profits. Copyright 1990 by Oxford University Press.

Suggested Citation

  • Harrison, Bennett & Bluestone, Barry, 1990. "Wage Polarisation in the U.S. and the 'Flexibility' Debate," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 14(3), pages 351-373, September.
    • Handle: RePEc:oup:cambje:v:14:y:1990:i:3:p:351-73
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    Citations

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    Cited by:

    1. Kim, Kwan S., 1997. "The Political Economy of Income Inequality in the United States," Economic Review, Hitotsubashi University, vol. 48(2), pages 113-127, April.
    2. Swaminathan, M., 1991. "Understanding the "Informal Sector": A Survey," Research Paper 95, World Institute for Development Economics Research.
    3. Pelagidis, Theodore, 1996. "Politiques économiques et destructuration industrielle dans les pays développés depuis les années quatre-vingt," L'Actualité Economique, Société Canadienne de Science Economique, vol. 72(1), pages 79-97, mars.
    4. Hennig, Jan-Luca, 2021. "Labor Market Polarization and Intergenerational Mobility: Theory and Evidence," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242353, Verein für Socialpolitik / German Economic Association.
    5. Pascal Petit, 1999. "Sectoral Patterns of Distribution in Slowly Growing Economies: The case of nine OECD countries in the 1980s and 1990s," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(3), pages 333-351.
    6. Pelagidis, Theodore, 1994. "Economic Policies in Greece during 1990-1993: An Assessment," MPRA Paper 107184, University Library of Munich, Germany.
    7. Palacios González, Federico & García Fernández, Rosa Mª. & Llorca Rodríguez, Carmen M., 2014. "The Impact of the Crisis on the Polarization of Spanish Wages/El impacto de la crisis en la polarización de los salarios en España," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 32, pages 335-348, Enero.
    8. Shreya Roy & Sugata Marjit & Bibek Ray Chaudhuri, 2022. "Role of Artificial Intelligence in Intra-Sectoral Wage Inequality in an Open Economy: A Finite Change Approach," CESifo Working Paper Series 9862, CESifo.
    9. Fiona MacPhail, 1998. "Moving Beyond Statistical Validity in Economics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 45(1), pages 119-149, November.
    10. Janet Walsh, 1997. "Employment Systems in Transition? A Comparative Analysis of Britain and Australia," Work, Employment & Society, British Sociological Association, vol. 11(1), pages 1-25, March.

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