The development of the labour market in the USA - lessons for us?

Abstract

"The USA has shown one of the lowest unemployment rates among the western industrial nations during recent years - though with large upward deviations for young people or certain ethnic groups. The short duration of unemployment could be attributable to the following two factors: firstly the American social system is far less well extended than in western Europe. There is therefore considerable pressure to take up work, if necessary with lower pay. Secondly there is a wide range of jobs, from well paid to very poorly paid, which permit gainful occupation and make possible a steady increase in employment. Thus in particular the ability of the American economy to create additional jobs constantly and to integrate an increasing labour force potential into the labour market is astonishing. The higher American employment growth compared with Germany can not be put down to a higher rate of economic growth, but to a higher employment intensity of the economic growth. As working hours remained at the same high level and the proportion of part-time employment remained the same, the national income must have been redivided among more people. In fact - with stagnating average wages - a further increase in income differences between the lower and upper income brackets can be ascertained. The employment growth is concentrated in the services sector, in which pay is often low but can in some cases also be above average. An above average increase in employment is also expected in the future for highly qualified activities. The employment successes in the USA were won through increasing wage disparities, social inequality and a high level of poverty. In Europe, therefore, the American way should not be followed without criticism. General wage restraint, redistribution and increased flexibility of working hours can also trigger off employment impulses. Lower starting wages for certain groups or the waiving of social security contributions could improve the employment chances for the low qualified. Proposals in the field of the private services also point in this direction: part of these wage costs could be made applicable for tax reductions. Anegative income tax for low-wage earners could also be considered." (Author's abstract, IAB-Doku) ((en))

Cite article

Werner, H. (1997): Die Arbeitsmarktentwicklung in den USA. Lehren für uns? In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 30, No. 3, p. 585-600.