[lbo-talk] education, skills, protection, was: India and cheap labor

Tom Roche Tom_Roche at pobox.com
Sun Jul 13 12:16:25 PDT 2003


Joanna Sun, 13 Jul 2003 13:37:19 -0400 (EDT)

> I remember how, in the recession of the early eighties, TV

> commentators chortled over the fact that anyone with computer skills

> had been spared layoffs...and I also recall the contempt with which

> most programmers normally treat the issue of unionizing hi tech

> workers...

> But, as it turns out, neither education nor skills offer any kind of

> protection.

Interestingly, even mainstream analysts are starting to admit this. E.g. Jared Bernstein of the Economic Policy Institute:

http://groups.yahoo.com/group/itlmi/message/73

> Q: You concluded that unemployment is rising and real wages are

> falling for so-called New Economy workers.

> A: The fourth quarter of 2002 was the slowest rate of wage growth on

> record for the group. In the first quarter of 2003, their wage

> growth was 1.8 percent over fourth-quarter 2002--that's way behind

> inflation. Not a pretty picture for these skilled white-collar

> workers.

> The bottom line for me is that in many policy discussions we argued

> that your skills will insulate you from the ups and downs of the New

> Economy; this latest downturn has proved that to be a pretty dubious

> contention.

But it's not just dot-com-ers: "inflation-adjusted wages for [all] professional and technical workers have indeed fallen," which includes (e.g.) "lawyers and accountants ... engineers, computer scientists, doctors, teachers and scientists."



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