Wessel.Levy.Blinder on Outsourcing and Technology

Wessel.Levy.Blinder on Outsourcing and Technology - Wessel...

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Unformatted text preview: Wessel and Levy on Outsourcing, Technology, and Inequality Inequality ¡ According to economists, the distinguishing feature of the U.S. economy of the past quarter Ͳ century is a sharp increase in economic inequality. ¡ No matter how you slice the data, very well Ͳ paid workers have done better than the rest. ¡ Let¡s look at inequality in the 1980s and 1990s Inequality in the 1980s ¡ Roughly 90% of full Ͳ time workers earn less than $90,000 a year. ¡ In the 1980s, wages of $90,000 Ͳ a Ͳ year workers (measured in today's dollars) pulled away from workers at the middle, and wages of those in the middle pulled away from workers at the bottom. ¡ Computer technology changed the workplace . ¡ Winners: In the 1980s, computer technology made employers prize and pay more for skill and education. ¡ Losers: In the 1980s, computer technology undermined employment and wages of those at the bottom whose jobs were easily automated or shipped overseas. Inequality in the 1990s ¡ The 1990s were different. ¡ Nearly all workers did better than they did in the 1980s ͲͲ even those at the bottom, the ones who notice when the minimum wage goes up. ¡ The $90,000 Ͳ a Ͳ year group continued to do better than men and women in the middle, but the gap between the middle and the bottom stopped widening.bottom stopped widening....
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This note was uploaded on 10/25/2011 for the course ECON 303 taught by Professor Battista during the Winter '11 term at Cal Poly.

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Wessel.Levy.Blinder on Outsourcing and Technology - Wessel...

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