Workforce Development and Income Distribution

Despite the dynamism and power of the American economy, real wages have been declining for many Americans. Globalization of the economy has eroded the American manufacturing base and major U.S. companies have relocated production facilities overseas. Jobs left behind require a highly skilled workforce with technical and analytical expertise. Schools have suffered as well over this time. American student achievement levels are far below those of their peers in other countries. Many people see a fundamental mismatch between the workforce required by firms and the training provided by the school system.

Professor Frank Levy working with Harvard Graduate School of Education Professor Richard Murnane are currently conducting a series of case studies in banks, medical facilities, auto repair shops and other settings to better understand how the computerization of work changes the skills that employees need to get a decent job. This research extends their exploration of the growing gap between the skills employers require and those elementary and secondary schools teach as presented in their book, Teaching the New Basic Skills. It is also informed by Levy's most recent study of the comprehensive history of the U.S. income distribution from the end of World War II through the present time, The New Dollars and Dreams.

Professor Paul Osterman's current research explores changing labor market trends from the perspective of employees. He is investigating how the ties binding the workforce to the firm have frayed as "contingent work," frequent layoffs, and wage stagnation have replaced job security and career ladders. The transformation of institutions such as labor unions and the role of government intervention is also key to understanding the shift in the balance of power between employees and management. Osterman's projects also include evaluation of public and nonprofit job training programs. He is working extensively with the Industrial Areas Foundations in the Southwest and is involved in the establishment of the Greater Boston Interfaith Organization, an organizing effort made up of 85 local congregations, community organizations, CDCs, social service agencies and unions. Levy and Osterman's expertise guides numerous HCED master's theses dissertations.