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Chapter 9

Week 4 - Grabb and Guppy Chapter 9 SOC220F.docx

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Department
Sociology
Course
SOC220H1
Professor
Josh Curtis
Semester
Fall

Description
Week 4 – Grabb and Guppy Chapter 9 ­ Labour Markets, Inequality, and the Future of Work Post­Industrial Society Theory • The post­industrial society [PIS] arose in the 1970s, with the post WW2 expansion of white collar  jobs and service industries, along with increasing standards of living Labour Process Theory • An alternative view provided by Neo­Marxists, this involves examining changes in the labour  process (how work is performed) • New working class – non­managerial white­collar workers in shops, offices, or the public sector.  Human Capital Theory • Assumes that the labour market is an open arena where everyone with similar qualifications  competes for the same jobs on even playing fields • This market rewards those with the greatest human capital, measured by education, training,  experience, and ability. A job’s reward is then based on its economic contribution to society • The theory assumes that employers make rational hiring and promotion decisions based on ability • An advantage, however, is that the HCT does accurately predict the returns on education: o On average, individuals with University degrees have higher incomes, greater lifetime  earnings, lower risk of unemployment, and a higher probability of being in a “good” job o Evidence: in the 1990s, vast majority of new full­time jobs went to university graduates.  o Youth from poor families may not get to University, and are at high risk of dropping out of high  school o Members of recent immigrant groups often end up in low­status jobs, even if they may be highly  educated and experienced Labour Market Segmentation Theory • There are different versions of the basic LMST model: o Dual economy model – highlights the uneven development of economic sectors in industrial  capitalist societies o Distinguishes between core and periphery industries, with better jobs at the core (large  corporations, the government)  Small firms tend to have lower margins and profits – hence there is a greater pressure to keep the  wages down, and workers are easily replaceable.  Unionization is much higher in large than in small firms. o Internal Labour Market  Pyramid­shaped bureaucracies that recruit at an entry­level position, then provide security, career  paths, and training once inside.   Most job openings are filled internally, creating a sheltered organization­based labour market.   Until recently, a hallmark of core­sector organizations  In the last decade, however, widespread downsizing has shaken internal career mobility. The  following have reduced internal career mobility and shaken employee commitment. • Staff cuts • “Delayering” process whereby the bureaucratic hierarchy is flattened • A shift to contracting out and temporary workers  Changing Industrial Patterns of Employment • Three major sectors: o Primary: agriculture, forestry, and other resource extraction industries o Secondary: manufacturing and construction o Tertiary: industries creating service rather than products • Since 1951, workforce production of primary/secondary has steeply declined.  • 1985­2005 1 [Type text] o Employment loses in the primary sector, mostly agriculture, because of global trends in  commodity markets.  o Lowest net gains in jobs occurred in the utilities and public administration sectors.  o
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