The Effect of Labor Policies on Productivity Cause and Effect Essay by Quality Writers

The Effect of Labor Policies on Productivity
A discussion on how US labor market polices have had a negative effect on employee productivity.
# 102567 | 1,720 words | 5 sources | MLA | 2008 | US
Published on Mar 27, 2008 in Business (Law) , Economics (Labor) , Law (Labor) , Labor Studies (General)

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This paper examines how, for over 20 years, workers have been faced with the dilemma of lack of job security, which has led to decreased productivity. Another major change that has affected productivity is American corporations' shift of focus away from making employees feel secure and appreciated, or providing them with ample pension and health care benefits plus wage increases to outpace inflation. The paper points out that, instead, the new focus of American corporations emphasizes the fiduciary responsibility to the stockholder and maximizing profits. The paper also adds that advanced technology, requiring less people but more skilled workers, and government labor policies, which removed trade barriers making it easier for American companies to outsource labor and relocate to countries with low labor costs, have had an adverse effect on American worker productivity and the American middle class. The paper concludes that the corporate/business paradigm shift from employee to stockholder is the most significant factor leading to reduced employee productivity and the erosion of the American middle class.

Background Research

From the Paper:

"Lack of job security is not a problem new to 2007, or even 2000, but one that has been on the rise since 1972. American companies have downsized dramatically since the late 1970s.
"In the first downsizing wave, 12% of the out placed workers left the workforce completely, 17% remained unemployed after two years. Of those finding new employment, 31% took a wage reduction of 25% or more and 32% of worker's wages were reduced by one to twenty-five percent while only 37% found no wage loss. These figures translate to 63% of people finding replacement jobs that are inferior to what they held prior to being downsized."

Sample of Sources Used:

  • Horst, Brand. Productivity and Employment: the 1988 International Symposium (conference papers). Monthly Labor Review. 1 Aug. 1988. <>
  • Shils, Edward B. "The Employment Picture of the United States." Chapter 9 of The Shils Report Measuring the Economic and Sociological Impact of the Mega-Retail Discount Chains on Small Enterprise in Urban, Suburban and Rural Communities. 7 Feb. 1997. 14 Mar. 2007 Accessed March 13, 2007 <>.
  • Scott, Robert E., Carlos ,Salas & Campbell, Bruce. Revisiting NAFTA, Still Not Working For North America's Workers. Economic Policy Institute Briefing Paper 173. 28 Sept. 2006. Accessed March 13, 2007 < >
  • Segel, Arthur I. How Important Is the "Service Sector Effect" on Productivity? Working Knowledge for Business Leaders. Harvard Business School. 29 May 2006. Accessed March 13, 2007 <>
  • Ward, William. Manufacturing Productivity and the Shifting US, China, and Global Job Scenes--1990 to 2005. Clemson University Center for International Trade Working Paper 052507. 4 Aug. 2005.

Cite this Cause and Effect Essay:

APA Format

The Effect of Labor Policies on Productivity (2008, March 27) Retrieved August 15, 2022, from

MLA Format

"The Effect of Labor Policies on Productivity" 27 March 2008. Web. 15 August. 2022. <>