Chapter 3 Americans at Work
Americans at Work: A Historical Perspective
Introduction to Work in America
- Work is a significant aspect of life for many, shaping identity and social interactions. When meeting someone new, Americans often inquire about their profession as a key part of the introduction.
Historical Changes in American Labor (1900-1999)
- The lecture will explore the evolution of work in the U.S. from 1900 to 1999, focusing on historical changes and current statistics regarding workers.
Shifts in Workforce Composition
- In 1900, 38% of the workforce was engaged in agriculture; by 1999, this number plummeted to 3%. Conversely, service industry employment surged from 31% to 78% during the same period. Examples of service industries include healthcare and banking.
Child Labor and Gender Employment Trends
- Child labor was prevalent at the start of the century with 1,750,000 children aged 10 to 15 working full-time (6% of labor force). By 1999, laws prohibited anyone under 16 from full-time work. Meanwhile, women's employment rose dramatically from 19% in 1900 to 60% by 1999.
Income Growth and Benefits
- Average per capita income increased significantly from $4,200 (adjusted for inflation) in 1900 to $33,700 in 1999. Workers also began receiving more benefits like health insurance over time.
Improvements in Workplace Safety
- Workplace safety has improved markedly; coal mining fatalities dropped from nearly 1,500 deaths in 1900 to just 35 deaths by 1999. Similarly, railroad worker fatalities decreased from 2,555 deaths to 56 deaths, indicating better working conditions overall by century's end.
Current State of U.S. Workers
Productivity vs Working Hours
- Despite being among the most productive globally according to a UN study (2003), U.S. workers face longer hours compared to their European counterparts who enjoy four to six weeks vacation annually versus two weeks for Americans. This trend indicates rising work hours despite increasing productivity levels over recent decades.
Comparative Productivity Insights
Understanding Wage Stagnation and Productivity Disparity
The Growing Gap Between Wages and Productivity
- Workers have not experienced wage increases that match productivity growth, as highlighted by sociologists in "Inequality by Design." They note a significant gap between rich Americans and the rest of the population.
- From 1949 to 1974, productivity gains were reflected in wage increases for workers across manufacturing and service sectors. However, since 1974, while productivity has risen (68% in manufacturing and 50% in services), real wages have stagnated.
- The disparity raises questions about where the financial benefits of increased productivity are directed. According to the authors, these benefits primarily go towards CEO salaries, stock market gains, and corporate profits rather than worker wages.
Factors Contributing to Wage Stagnation
- The reasons behind this phenomenon are complex but often attributed to two main factors:
- A decline in labor union power since the early 1980s.