Despite Labor Shortages, Workers See Few Gains in Economic Security

“Companies are doing all they can not to bake in any gains that are difficult to claw back,” Dr. Schneider said. “Workers’ labor market power is so far not yielding durable dividends.”

The changes that make work lower paying, less stable and generally more precarious date back to the 1960s and ’70s, when the labor market evolved in two key ways. First, companies began pushing more work outside the firm — relying increasingly on contractors, temps and franchisees, a practice known as “fissuring.”

Second, many businesses that continued to employ workers directly began hiring them to part-time positions, rather than full-time roles, particularly in the retail and hospitality industries.

According to the scholars Chris Tilly of the University of California, Los Angeles, and Françoise Carré of the University of Massachusetts Boston, the initial impetus for the shift to part-time work was the mass entry of women into the work force,…

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