IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v56y2024i2p185-213.html
   My bibliography  Save this article

The Rise of Guard Labor in the United States: Evidence from Local Labor Markets

Author

Listed:
  • Luke Petach
  • Anastasia Wilson

Abstract

We examine the rise of “Guard Labor†—defined as occupations devoted to labor extraction—at the commuting zone level in the United States. Between 1950 and 2017 the share of the labor force employed in guard labor increased from 19.5 percent to 29.4 percent. We explore the local labor market correlates of guard labor and validate several predictions of the labor discipline model, while extending the model to the context of contemporary racial capitalism. The share of the labor force employed in guard labor is positively correlated with the household income Gini coefficient, negatively correlated with the fraction of the labor force in a union, and positively correlated with contemporary measures of local racial animosity. Consistent with the labor discipline model, an increase in the share of the labor force employed in supervisory occupations has a significant negative effect on nonsupervisory wages. JEL Classification: O17, P16, Z13, B51, B52

Suggested Citation

  • Luke Petach & Anastasia Wilson, 2024. "The Rise of Guard Labor in the United States: Evidence from Local Labor Markets," Review of Radical Political Economics, Union for Radical Political Economics, vol. 56(2), pages 185-213, June.
  • Handle: RePEc:sae:reorpe:v:56:y:2024:i:2:p:185-213
    DOI: 10.1177/04866134231195390
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/04866134231195390
    Download Restriction: no

    File URL: https://libkey.io/10.1177/04866134231195390?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sylvia A. Allegretto & Arindrajit Dube & Michael Reich, 2011. "Do Minimum Wages Really Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(2), pages 205-240, April.
    2. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    3. Barry T. Hirsch & David A. MacPherson, 2003. "Union Membership and Coverage Database from the Current Population Survey: Note," ILR Review, Cornell University, ILR School, vol. 56(2), pages 349-354, January.
    4. Luke Petach, 2021. "Spatial Keynesian policy and the decline of regional income convergence in the USA," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 45(3), pages 487-510.
    5. Luke Petach, 2020. "Distribution and capacity utilization in the United States: evidence from state-level data," Review of Keynesian Economics, Edward Elgar Publishing, vol. 8(2), pages 240-267, April.
    6. Bowles, Samuel, 1985. "The Production Process in a Competitive Economy: Walrasian, Neo-Hobbesian, and Marxian Models," American Economic Review, American Economic Association, vol. 75(1), pages 16-36, March.
    7. Maarten Goos & Alan Manning & Anna Salomons, 2014. "Explaining Job Polarization: Routine-Biased Technological Change and Offshoring," American Economic Review, American Economic Association, vol. 104(8), pages 2509-2526, August.
    8. José Azar & Ioana Marinescu & Marshall Steinbaum, 2022. "Labor Market Concentration," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 167-199.
    9. David Autor & David Dorn & Gordon Hanson, 2019. "When Work Disappears: Manufacturing Decline and the Falling Marriage Market Value of Young Men," American Economic Review: Insights, American Economic Association, vol. 1(2), pages 161-178, September.
    10. Simon Mohun, 2006. "Distributive shares in the US economy, 1964--2001," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 347-370, May.
    11. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    12. Simon Mohun, 2014. "Unproductive Labor in the U.S. Economy 1964-20101," Review of Radical Political Economics, Union for Radical Political Economics, vol. 46(3), pages 355-379, September.
    13. Lisa Cook, 2014. "Violence and economic activity: evidence from African American patents, 1870–1940," Journal of Economic Growth, Springer, vol. 19(2), pages 221-257, June.
    14. Gordon, David M, 1994. "Bosses of Different Stripes: A Cross-National Perspective on Monitoring and Supervision," American Economic Review, American Economic Association, vol. 84(2), pages 375-379, May.
    15. Gordon, David M, 1990. "Who Bosses Whom? The Intensity of Supervision and the Discipline of Labor," American Economic Review, American Economic Association, vol. 80(2), pages 28-32, May.
    16. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    17. William Darity & Darrick Hamilton & James Stewart, 2015. "A Tour de Force in Understanding Intergroup Inequality: An Introduction to Stratification Economics," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(1), pages 1-6, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eisenbarth, Anthony & Chen, Zhou Fu, 2022. "The evolution of wage inequality within local U.S. labor markets," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-2.
    2. Jayadev, Arjun & Bowles, Samuel, 2006. "Guard labor," Journal of Development Economics, Elsevier, vol. 79(2), pages 328-348, April.
    3. Belloc, Filippo & Burdin, Gabriel & Cattani, Luca & Ellis, William & Landini, Fabio, 2022. "Coevolution of job automation risk and workplace governance," Research Policy, Elsevier, vol. 51(3).
    4. Wang, En-Ze & Lee, Chien-Chiang & Li, Yaya, 2022. "Assessing the impact of industrial robots on manufacturing energy intensity in 38 countries," Energy Economics, Elsevier, vol. 105(C).
    5. Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2021. "Automation, unemployment, and the role of labor market training," European Economic Review, Elsevier, vol. 137(C).
    6. Sessions, John G., 2008. "Wages, supervision and sharing," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(4), pages 653-672, November.
    7. Anderton, Robert & Jarvis, Valerie & Labhard, Vincent & Morgan, Julian & Petroulakis, Filippos & Vivian, Lara, 2020. "Virtually everywhere? Digitalisation and the euro area and EU economies," Occasional Paper Series 244, European Central Bank.
    8. Keller, Wolfgang & Utar, Hale, 2023. "International trade and job polarization: Evidence at the worker level," Journal of International Economics, Elsevier, vol. 145(C).
    9. Rabensteiner, Thomas & Guschanski, Alexander, 2022. "Autonomy and wage divergence: evidence from European survey data," Greenwich Papers in Political Economy 37925, University of Greenwich, Greenwich Political Economy Research Centre.
    10. Michele Cantarella & Chiara Strozzi, 2021. "Workers in the crowd: the labor market impact of the online platform economy [An evaluation of instrumental variable strategies for estimating the effects of catholic schooling]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(6), pages 1429-1458.
    11. Gordon H. Hanson, 2021. "Immigration and Regional Specialization in AI," NBER Working Papers 28671, National Bureau of Economic Research, Inc.
    12. Maximiliano Dvorkin & Alexander Monge-Naranjo, 2019. "Occupation Mobility, Human Capital and the Aggregate Consequences of Task-Biased Innovations," Working Papers 2019-064, Human Capital and Economic Opportunity Working Group.
    13. M. Battisti & M. Del Gatto & A. F. Gravina & C. F. Parmeter, 2021. "Robots versus labor skills: a complementarity/substitutability analysis," Working Paper CRENoS 202104, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    14. Gries, Thomas & Naudé, Wim, 2020. "Artificial Intelligence, Income Distribution and Economic Growth," IZA Discussion Papers 13606, Institute of Labor Economics (IZA).
    15. Sergei Guriev & Elias Papaioannou, 2022. "The Political Economy of Populism," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 753-832, September.
    16. bunten, devin michelle & Fu, Ellen & Rolheiser, Lyndsey & Severen, Christopher, 2024. "The Problem Has Existed over Endless Years: Racialized Difference in Commuting, 1980–2019," Journal of Urban Economics, Elsevier, vol. 141(C).
    17. David Kunst, 2019. "Deskilling among Manufacturing Production Workers," Tinbergen Institute Discussion Papers 19-050/VI, Tinbergen Institute, revised 30 Dec 2020.
    18. Goos, Maarten & Rademakers, Emilie & Röttger, Ronja, 2021. "Routine-Biased technical change: Individual-Level evidence from a plant closure," Research Policy, Elsevier, vol. 50(7).
    19. Fernández-Macías, Enrique & Klenert, David & Antón, José-Ignacio, 2021. "Not so disruptive yet? Characteristics, distribution and determinants of robots in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 76-89.
    20. Prettner, Klaus & Strulik, Holger, 2020. "Innovation, automation, and inequality: Policy challenges in the race against the machine," Journal of Monetary Economics, Elsevier, vol. 116(C), pages 249-265.

    More about this item

    Keywords

    guard labor; supervisory labor; incomplete contracts; inequality; local labor markets;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:56:y:2024:i:2:p:185-213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.