your contention that the low paid and unemployed have innate characteristics that explain their fate
David, you clearly have had a lot of experiences that I have not had.
Brendan Mahony
43

My contention/observation was that the vast majority of marginal low wage jobs go to people with marginal or zero skills. Something that is NOT a permanent affliction. I would add that it also happens to those who cannot or will not move to where the jobs are. One critical point, ALL economies have all kinds of different jobs, from high skill/high pay to low wage poor condition or temporary. No model we create can nor should do away with those marginal jobs. They exist at the margins and absorb slack in the labor market. You want to find a way to create an artificial floor in the market, and you want private employers to finance those efforts. Sadly all it will do is insure that fewer actually start work. Let me use France as an example. Once you are hired in France, it is virtually impossible to fire an employee, even if you go out of business. Consequently, youth unemployment in France is 25%, and their labor participation rate is only 38%. By law, France doesn’t collect ethnicity information, making it very easy for them to hide and ignore the real levels of minority unemployment. You can bet that it’s far worse than the national unemployment rate, especially for young minority adults. Meanwhile, the elderly have very high rates of employment, primarily because they are impossible to fire.

My point is that rigid protection mechanisms distort the market and drive youth and minority unemployment or marginal employment through the roof.

Like what you read? Give David Cearley a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.