U.S. workers did not share in the growth of the economy of the last forty years

According to a recent study1, unlike the growth patterns in the 1950s and 1960s, the majority of full-time workers did not share in the economic growth of the last forty years.

Had the income distributions of the three decades following World War II (1945 through 1974) held steady in the following four decades, the aggregate annual income of Americans earning below the 90th percentile would have been $2.5 trillion higher in the year 2018 alone. That is an amount equal to nearly 12 percent of GDP—enough to more than double median income—enough to pay every single working American in the bottom nine deciles an additional $1,144 a month. Every month. Every single year.

The median income for all adults with nonzero income was $42,000 in 1975 and it grew to $50,000 by 2018. Had income for this percentile grown as the same pace as the economy, it would have reached $92,000. In other words, their income growth captured only 17% of the growth that occurred in the whole economy.

 

 

 

 

  1. https://www.rand.org/pubs/working_papers/WRA516-1.html []

Clayton Christensen 1952-2020

Clayton Christensen, a professor at the Harvard Business School, is best known for his theory of disruptive innovation, in which he warns large, established companies of the danger of becoming too good at what they do best.

People who knew him personally speak of a fine human being.

RIP

You can find some of his seminal Harvard Business Review pieces here.

 

Your job might be killing you

There are 120,000 excess deaths per year attributed to ten workplace conditions and they cause approximately $190 billion in incremental health care costs. That makes the workplace the fifth leading cause of death in the U.S. — higher than Alzheimer’s, higher than kidney disease.

  1. Being unemployed sometimes as a result of a layoff.
  2. Not having health insurance.
  3. Working shifts and also working longer periods, e.g., ten or twelve-hours shifts.
  4. Working long hours in a week (e.g., more than 40 hours per week).
  5. Job insecurity (resulting from colleagues being laid off or fired).
  6. Facing family-to-work and work-to-family spillover or conflict.
  7. Having relatively low control over one’s job e.g., workload.
  8. Facing high work demands such as pressure to increase productivity and to work quickly.
  9. Being in a work environment that offers low levels of social support (e.g., not having close relationships with co-workers.
  10. Working in a setting in which job- and employment-related decisions seem unfair.

Both articles report the findings published by Jeffrey Pfeffer in Dying for a Paycheck: How Modern Management Harms Employee Health and Company Performance—and What We Can Do About It.

I have not read the book yet, but I definitely will.

What does work flexibility look like?

A meta-analysis of the existing research on flexibility identified the fundamental components:

  • Where we work,
  • When we work, and
  • How predetermined our schedule is.

These component parts lead to six distinct types of flexibility:

  1. Remote: “Work from anywhere” – Remote employees keep standard office hours but are location independent. Their office is wherever they are.
  2. DeskPlus: “Partially office-based” – DeskPlus employees keep standard office hours and are partially location independent.
  3. TravelLite: “Minimal travel requirements” – TravelLite employees have minimal to no travel, with a maximum limit of 10% travel annually.
  4. TimeShift: “Standardly unconventional hours” – TimeShift employees reorder their working hours to create a set but unconventional schedule (outside of 9-5 conventions) that optimizes their productivity and performance.
  5. MicroAgility: “Freedom to adapt” – MicroAgility employees have the autonomy to step away from their work 1-3 hours at a time to accommodate the unexpected.
  6. PartTime: “Reduced workload” – PartTime employees serve in senior-level roles; they have the experience and skills to meet the company objectives on a reduced hours schedule.