Marginal Jobs

1
Chapter 14

• Marginal Jobs

2
Marginal Jobs

• Marginal Jobs are characterized one of the
  following
• Illegal
• Unstable Contingency or contract work
• Inadequate pay and hours
• Not Government Regulated (shadow economy)

3
Marginal Jobs

• Companies faced with international competition
  can
• Reduce labor costs layoff workers and/or
  create marginal jobs.
• Build up Company reinvest in technology,
  innovate, expand product market.

4
Marginal Jobs

• Minimum Wage
• National minimum wage increased from 5.15 to 7.25
  in 2009. First increase in 10 years.
• How much do people on minimum wage make per year?
• Why are people resistant?
• What about wages that are interconnected like
  Ben and Jerrys.

5
Minimum wage workers

• In 2011
• 59.1 American workers age 16 and over were paid
  at hourly rate.
• Among those 5.2 made wages at or below the
  Federal minimum wage (thus, no one in Illinois
  would count)BUT
• 15.1 percent of U.S Families live below the
  poverty line (below 23,000 for family of four)

6
Employers Who Marginalize

• 1) Dual Labor Markets
• Core White, Male, U.S. Citizens
• Periphery Immigrant, non-white, female..
• Who will do the work many dont want to do?
  (migrant farming, slaughterhouse jobs).
• Do we need those jobs done?

7
Marginal Jobs

• Many companies claimed unions harmed their
  businesses by increasing labor costs.
• BUT, when companies were given money by
  government to build up companies, they used it to
  diversify or sell their business
• For example, radial tires. Companies received
  money from govt to invest in technology. They
  didnt. Closed down plants.
• For example, Clinton Corn processing. Took
  government money and bought companies outside the
  industry.

8
Marginal Jobs

• International Issues..
• No Logo.