How Thriving Firms Threaten the Future of Work

In the past few decades, we have witnessed the rise of a new type of firm: the thriving firm.

The Profit Paradox: How Thriving Firms Threaten the Future of Work

by Jan Eeckhout

4.3 out of 5

Language	:	English
File size	:	1572 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	326 pages

FREE

These firms are characterized by their high levels of profitability, rapid growth, and ability to innovate. They are also increasingly concentrated in a few industries, such as technology, finance, and healthcare.

While thriving firms have been a major source of economic growth and job creation, they also pose a significant threat to the future of work.

This is because thriving firms are leading to a bifurcation of the labor market, with good jobs becoming increasingly concentrated in a few firms at the top and low-wage jobs becoming more common at the bottom.

This bifurcation is having a number of negative consequences for workers and the economy.

• Rising inequality: The gap between the rich and the poor is widening, as the profits of thriving firms are increasingly concentrated in the hands of a few shareholders and executives.
• Stagnant wages: Wages for workers in non-thriving firms have been stagnant for decades, while the cost of living has continued to rise.
• Job insecurity: Workers in non-thriving firms are more likely to face job loss and wage cuts, as these firms are more vulnerable to economic downturns.

The rise of thriving firms is also leading to a number of other challenges for the future of work, including:

• The decline of unions: Unions have been a major force for protecting workers' rights and wages, but they have been weakened in recent decades by the rise of thriving firms.
• The growth of the gig economy: The gig economy is a growing part of the labor market, but it offers few protections for workers and often leads to low wages and job insecurity.
• The automation of jobs: Technological change is leading to the automation of many jobs, which is further exacerbating the challenges facing workers in non-thriving firms.

The book 'How Thriving Firms Threaten the Future of Work' explores these challenges in detail and offers a number of policy recommendations to address them.

These recommendations include:

• Investing in education and training: Workers need to be equipped with the skills they need to compete for jobs in the new economy.
• Strengthening unions: Unions can help workers to negotiate for better wages and working conditions.
• Creating a more supportive social safety net: Workers who lose their jobs need to have access to unemployment insurance, healthcare, and other forms of support.
• Regulating the gig economy: The gig economy needs to be regulated to ensure that workers are protected from exploitation.
• Investing in infrastructure: Infrastructure investment can create jobs and boost economic growth.

These recommendations are not a panacea, but they would go a long way towards addressing the challenges facing workers in the future of work.

The Profit Paradox: How Thriving Firms Threaten the Future of Work

by Jan Eeckhout

4.3 out of 5

Language	:	English
File size	:	1572 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	326 pages

FREE