Inclusion and Exclusion in the Liberal Competition State: The Cult of the Individual by Richard Münch

Author:Richard Münch [Münch, Richard]
Language: eng
Format: epub
Tags: International Relations, International, Political Science, Business & Economics, General
ISBN: 9780415671538
Google: icPwLgCwNq4C
Goodreads: 13715075
Publisher: Routledge
Published: 2011-12-20T00:00:00+00:00

Table 4.4 Inequality of income within different groups of education in the USA 1973–2001

of advisory boards. Further important factors are no control through co-determination and work councils, high-tech agglomerations promoted by the collaboration of fluid capital, science and new entrepreneurs. Part of this arrangement is an educational system that delivers academic top specialists along with a mass of moderately and generally skilled people as well as a considerable number of poorly skilled people graduating from poorly equipped schools in poor neighbourhoods or even dropping out from school before graduation. In addition, lobbying for tax cuts has been particularly successful in Congress over the past thirty years. It has contributed to enormous income growth at the very top of the American class structure (Bartels 2007; Hacker and Pierson 2010).

A special factor contributing to greater inequality of earnings is immigration. It provides a country with a steady influx of people who want to take advantage of the market, because it offers just those opportunities for achievement on any level of the earnings scale that are apparently not available in their home country. Additionally, union membership of immigrants is low. Thus they tend towards accepting distribution of earnings by the market. Correspondingly, natives are more likely to accept immigrants if the market decides on their earnings level (Freeman 1986; Crepaz 2008). In this case natives can calculate that immigrants contribute to the overall growth of societal wealth and do not receive an undeserved share of this wealth. Thus we should expect a higher rate of simple private service employment at low pay and greater earnings dispersion in countries with higher immigration rates. This assumption is corroborated – albeit only weakly – by data, though only in part (Figures 4.5 and 4.6). For the United States we can say that the country’s openness to immigration is the other side of its greater reliance on the market as the major device of earnings distribution.

Figure 4.5 Net migration rate – employment ISIC 6 (source: OECD 2010d, 2011e. Proportion of employees in services retrieved 14 March 2011, from http://stats.oecd.org/Index.aspx?DatasetCode=STAN08BIS&lang=en. Net migration rate retrieved 14 March 2011, from www.oecd-ilibrary.org/economics/oecdfactbook-2010/net-migration-rate-table_factbook-2010-table19-en;jsessionid=cky8rkqgewa2.delta).

Note

Proportion of employees as divided total number of employees in services by total population. Own calculations.

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