Globalization and the politics of pay

the long version

Examines the economic, political, and social causes and consequences of declining wages in the United States. Hansen challenges the conventional wisdom that globalization is to blame for the decline in workers' earnings and presents a comprehensive analysis of the many factors affecting labor costs, concluding that many of them result from choices made by the states themselves through the laws and policies they enact. In addition, free-market ideologies and low voter turnout have had greater effects in keeping wages down than globalization. In fact, foreign trade and investment can actually result in higher pay in the state labor market. Most economists would argue that higher labor costs cause higher unemployment, and that reducing labor costs will lead to higher levels of job creation. But citizens and elected officials must weigh any employment gains in lower-wage jobs against slower state economic growth, declining personal income, and a less-competitive position in international trade. Cutting state labor costs is shown to have adverse social consequences, including family instability, high crime rates, poverty, and low voter turnouts. – from publisher description.