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31. Automation and a Changing Economy: Policies for Shared Prosperity

Author:
Alastair Fitzpayne, Conor Mckay, and Ethan Pollack
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Part I of this report, Automation and a Changing Economy: The Case for Action, explores how automation has impacted and will continue to impact the economic security and opportunity of the American worker. But technology is not destiny. The impact of innovation on the American worker is mediated by policies and institutions. We can choose to create an economy that: promotes technological progress; prepares workers to take advantage of the opportunities technology presents; supports those who are negatively impacted by automation return to stable work; and shares technology’s gains more broadly. These goals are achievable with the right support, but the policy structures currently in place are inadequate. This part of the report, Automation and a Changing Economy: Policies for Shared Prosperity, outlines a policy agenda for addressing these challenges and opportunities. Doing so requires an all-of-the-above approach, from targeted, specialized interventions to those with systems-level impact; from place-based policies to national-level reforms to safety net programs. The paper identifies four objectives that guide its recommendations
Topic:
Science and Technology, Labor Issues, Automation, and Job Creation
Political Geography:
Global Focus

32. Automation and a Changing Economy: The Case for Action

Author:
Alastair Fitzpayne, Conor Mckay, and Ethan Pollack
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Technology fuels our economy, captures our collective imaginations, and promises extraordinary possibilities. It permeates almost all aspects of our lives. From electrification and the internal combustion engine, to search engines and smartphones, technology has changed how we travel, access information, buy products, and communicate with each other. As technology changes our personal lives, it also changes work. For generations, economic change has replaced products, jobs, and industries with innovative new models. The American economy has transitioned from agrarian to industrial, service to digital, and with each evolution, America has prospered even as it grappled with the profound challenges of change. The American ideal embraces the promise that economic progress can create an inclusive society in which prosperity is broadly shared. Work is more than simply a way to earn a living. It gives structure, dignity, and purpose to our lives. For this reason, workers should not be treated as a cost of doing business but recognized for their productivity and creativity. For too many Americans, the promise of work is not being kept. New technologies are creating great wealth for some, but we are simultaneously experiencing historic income and wealth inequality. Without robust policies and strong institutions, new innovations risk exacerbating the economic insecurity and political and civil divides that we are experiencing today. Emerging technologies, including artificial intelligence, machine learning, and advanced robotics, have the potential to automate many tasks currently performed by workers. Historically, automation has been an important ingredient driving economic growth and progress. Automation has enabled us to feed a growing population while allowing workers to transition from subsistence farming to new forms of work. Automation helped move us from a craft system to mass production, from blue-collar to white-collar to “new-collar” work—with better work, higher wages, more jobs, and better living standards. Similar to past innovations, these new technologies offer the potential to help us meet human needs while supporting new jobs and industries never before imagined. However, automation can also have negative effects on individuals and communities. Those who lose their jobs suffer economic, social, and psychological hardship. Communities that relied on single industries that have been automated have struggled to recover. New jobs are being created, but their geographic distribution and skill requirements often make them inaccessible to the individuals and the communities where those whose jobs were lost. This dislocation has played a role in exacerbating America’s economic, political, geographic, and social divides. The answer to the dislocations that can result from automation should not be to stifle innovation. Policies and reforms should encourage both the development of new technologies and the promise of work. Workers need access to the opportunities technology creates. Policymakers and employers can help by providing access to skills training, ensuring the availability of good jobs, and improving the systems that are in place to help those who will transition from declining to growing occupations. While there are many unanswered questions about what the future holds, this report attempts to explain how automation impacts the labor market and how to better prepare American workers to benefit from the changes to come.
Topic:
Economics, Science and Technology, Labor Issues, Automation, and Job Creation
Political Geography:
Global Focus

33. Genesis at Work: Evaluating the Effects of Manufacturing Extension on Business Success and Job Quality

Author:
Ranita Jain, Nichola Lowe, Greg Schrock, and Maureen Conway
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Manufacturers looking to improve productivity and efficiency often turn to Manufacturing Extension Partnerships (MEPs), public-private partnerships supported by the US Department of Commerce that provide consulting services to support their growth and competitiveness. These partnerships often focus on implementing lean manufacturing strategies to cut waste and eliminate production bottlenecks. But what if they also adopted people strategies, focusing on job quality alongside process and product strategies to help businesses solve their problems?
Topic:
Science and Technology, Employment, Manufacturing, and Job Creation
Political Geography:
North America and United States of America

34. Assessing How Foreign State-Owned Enterprises' U.S. Based Operations Disrupt U.S. Jobs

Author:
Oxford Economics
Publication Date:
06-2019
Content Type:
Commentary and Analysis
Institution:
Oxford Economics
Abstract:
The entrance of a Chinese state-owned enterprise (SOE) in the transit passenger railcar manufacturing sector disrupts the current private-sector competitive railcar manufacturing sector in the U.S. In this study, Oxford Economics measures the net effects, stemming from this disruption by quantifying the loss to U.S. jobs, income and GDP that result from anti-competitive SOE practices. Even when domestic protective measures, such as 'Buy America' are put in place loss due to the SOE offshoring key apsects of their supply chain quickly accumulates--especially given the size and duration of municipal transit railcar contracts. We estimate that for every $1 billion in new contracts awarded to a Chinese SOE, the U.S. loses between 3,250 and 5,100 jobs.
Topic:
Hegemony, Employment, State Actors, Manufacturing, Job Creation, Supply Chains, and Contracts
Political Geography:
China, Asia, North America, and United States of America

35. India’s Employment Crisis: Rising Education Levels and Falling Non-agricultural Job Growth

Author:
Jajati Parida and Santosh Mehrotra
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Falling total employment is an unprecedented trend seen from 2011-12 to 2017-18. Due to a decline of employment in agriculture and manufacturing and slow growth of construction jobs, the process of structural transformation, which had gained momentum post-2004-5, has stalled since 2012. Mounting educated youth unemployment, and lack of quality non-farm jobs have resulted in an increase of the disheartened labour force. Though the share of regular and formal employment increased marginally due to growth of formal jobs in the private sectors, the share of informal jobs within government/public sector increased. A dominant share of jobs is still generated by micro and small units of the unorganized sectors without any formal or written job contract. In both government and private sectors the number of contract jobs (with less than a year’s contract) is on the rise post 2011-12. Not surprisingly, real wages have not increased in either rural or urban areas.
Topic:
Economics, Education, Labor Issues, Employment, Economic Growth, and Job Creation
Political Geography:
India

36. The Evolving Discourse on Job Quality- From Normative Frameworks to Measurement Indicators: The Indian Example

Author:
Divya Prakash and Sabina Dewan
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Indians are optimistic. According to the Pew Research Center’s 2017 Global Attitudes Survey, three out of four Indians believe that, “when children today in India grow up, they will be better off financially than their parents” (Pew Global Attitudes Survey, 2017). Families hinge their hopes on the ability of the next generation to work hard, earn a living, and be a source of financial support. For years now, the nation has done the same, pinning its economic ambitions to a demographic advantage, or youth bulge, that is set to continue only for the next two decades. Unless there are pathways to productive and high-quality employment, the nation’s youth will not be able to deliver on these expectations. How has India’s economy fared on job creation over the past decade? The country had just under 466 million people in the labour force1 in 2015, with a participation rate of 50.3 percent (Labour Bureau, 2015/16). An analysis of Labour Bureau data over a period of four years from 2012 to 2015 shows that on average, 4.75 million people were added to the labour force per year. According to the Labour Bureau’s Employment-Unemployment survey, between 2012 to 2015, the economy generated a total of 9 million jobs, based on Usual Principal Status -- the activity that an individual is engaged in for a major part of the reference year (Labour Bureau, 2011/12 to 2015/16).
Topic:
Economics, Labor Issues, Employment, Work Culture, and Job Creation
Political Geography:
India

37. Exploring Short- and Long-Term Survival Mechanisms and Perception of Job Market by Zimbabwean Migrant Women in South Africa

Author:
Alice Ncube, Yonas T. Bahta, and Andries J. Jordaan
Publication Date:
07-2019
Content Type:
Research Paper
Institution:
Ìrìnkèrindò: a Journal of African Migration
Abstract:
This article assesses the perception of the job market, initial, and long-term coping and adaptation mechanisms employed by Zimbabwe migrant women in South Africa using survey data and Kendall’s coefficient of concordance. It concludes that women migrants perceived the job market as favorable. The demographic and socioeconomic characteristics and initial as well as long-term survival mechanisms of migrant women played significant roles in the coping and adaptation mechanisms. The study recommends that the government clarify policies on foreigners’ business ownership to avert conflicts.
Topic:
Gender Issues, Migration, Labor Issues, Women, Employment, Unemployment, and Job Creation
Political Geography:
South Africa and Zimbabwe

38. War Spending and Lost Opportunities

Author:
Heidi Garrett-Peltier
Publication Date:
01-2019
Content Type:
Special Report
Institution:
Watson Institute for International and Public Affairs at Brown University
Abstract:
All types of federal spending have ripple effects throughout the economy. As funds are spent on war, there is demand not only for soldiers and for DOD personnel, but for the goods and services that support these positions. Likewise, if we focus on a sector such as clean energy, spending that is channeled directly to an industry such as solar or wind also creates secondary effects, what we call indirect employment, in industries such as hardware manufacturing, electronics production, and trucking. To capture the full effect of any federal spending, then, we need to estimate not only the direct jobs that are created by any type of spending, but also the indirect jobs that are supported throughout the supply chain.
Topic:
War, Labor Issues, Economy, Military Spending, and Job Creation
Political Geography:
North America and United States of America

39. Youth Employment in Botswana: Comparative Analysis of 2009/10 and 2015/16

Author:
Tshepiso Gaetsewe
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines determinants of youth unemployment in Botswana by comparing two different datasets- (2009/10 Botswana Core Welfare Indicator Survey (BCWIS) and 2015/16 Botswana Multi-Topic Household Survey (BMTHS)). The main objective of the study is to identify the factors that determine the employment probabilities of the youth. Using a probit model we find that gender, age, marital status and education level have an impact on the employment probabilities in both 2009/10 and 2015/16 time periods. Males had a higher chance of employability compared to females. The government and private sector need to develop programmes that will increase women participation in the labour market. Results also indicate that youth with post-secondary education have a better chance of employment. Individuals dwelling in rural and urban areas are less likely to get employment. Government needs to boost business activity in rural areas by identifying and investing in economic activities located there.
Topic:
Employment, Youth, Unemployment, and Job Creation
Political Geography:
Africa and Botswana

40. BEST Corp: Quality Training for Quality Jobs

Author:
Jenny Weissbourd
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
Hospitality ranks among America’s fastest-growing sectors, but millions of hotel workers are not reaping the rewards. Boston Education, Skills & Training (BEST) Corp. is solving this problem by providing best-in-class training that prepares workers to excel and engages hotels in discussions about the value of training. BEST was founded in 2004 as a nonprofit workforce development program focused on helping individuals develop skills and find good jobs in Boston’s hospitality industry. BEST serves nearly 500 job seekers and hotel workers each year, with training in English, computer skills, culinary skills, and industry-specific certifications like food safety. Through career coaching BEST helps participants secure quality jobs and provides hotels with the skilled talent to thrive in an increasingly competitive industry. As the third prong of a productive labor-management partnership, BEST works closely with Local 26, the hospitality worker’s union, and its high road hotel employers. These 35 hotels pay a starting hourly wage as high as $21.43 to BEST graduates, and provide a generous benefits package, which includes career advancement training through BEST. BEST’s model programs benefit workers, hotels, and Boston’s regional economy by placing engaged employees in stable jobs. BEST reaches the working poor – particularly immigrants and people of color – and provides them with the opportunity to obtain a quality job and enter the middle class. Hotel partners report that BEST-trained workers bring the critical thinking skills and cultural competency to perform better with decreased turnover, contributing to stronger financial performance. The Aspen Institute’s interview with Alex Pratt, Area Director of Human Resources at Omni Hotels & Resorts, speaks to BEST’s vital role in preparing top talent and enabling operational excellence.
Topic:
Training, Job Creation, Labor Market, and Hospitality
Political Geography:
United States of America and North America