Labor and jobs

A new study by Prof. Daron Acemoglu, former postdoctoral fellow Nicolaj Mühlbach and London School of Economics Prof. Andrew Scott finds that while American jobs have become age-friendlier, “older workers haven’t been the biggest beneficiaries of this age-friendly job bonanza,” reports Andrew Van Dam for The Washington Post. The researchers found, “workers age 62 and older were significantly more willing to accept a smaller paycheck if a job involved moderate physical activity, more time sitting and the autonomy to choose how to do their job,” writes Van Dam.

TechCrunch reporter Brian Heater spotlights a new study by Prof. Daron Acemoglu that examines the impact of automation on the workforce. “We’re starting with a very clear premise here: in 21st-century America, the wealth gap is big and only getting bigger,” writes Heater. “The paper, ‘Tasks, Automation, and the Rise in U.S. Wage Inequality,’ attempts to explore the correlation between the growing income gap and automation.”

Popular Science reporter Andrew Paul writes that a study co-authored by Institute Prof. Daron Acemoglu examines the impact of automation on the workforce over the past four decades and finds that “‘so-so automation’ exacerbates wage gaps between white and blue collar workers more than almost any other factor.”

Writing for The Hill, Prof. Daniela Rus, director of CSAIL, explores how automation could ease the supply chain crisis. “Automation in these settings doesn’t mean replacing employees, but developing more robust inventory management software and using systems like scanners and conveyors that make our jobs easier,” writes Rus. “This would enable warehouse workers to focus on other more detail-oriented roles, from overseeing the operation of forklifts to improving the efficiencies of distribution centers.”

Prof. Daron Acemoglu speaks with Freakonomics Radio host Stephen Dubner about his research exploring how having a boss who attended business school can impact a business. “The main findings are actually very simple,” says Acemoglu. “As soon as you have a business school manager, you see a relative decline in wages and labor share.”

Researchers from the Sloan School of Management have found that toxic work culture is the driving force behind many employees leaving their jobs, reports James Reid for Forbes. “A strong, healthy culture is the execution engine of an organization, which makes it the most valuable asset any organization can possess,” writes Reid.

A study co-authored by graduate student Evan J. Soltas finds that illness caused by Covid-19 shrank the U.S. labor force by around 500,000 people, reports Gwynn Guilford for The Wall Street Journal. “If we stay where we are with Covid infection rates going forward, we expect that 500,000-person loss to persist until either exposure goes down or severity goes down,” said Soltas.

Prof. Thomas Kochan writes for Fortune about how California’s new Fast Food Council can positively impact businesses, investors, employers, and workers. The council is “composed of industry, worker, and government representative to set minimum wage, safety, and employment and training standards for workers in large fast food chains and their franchises,” writes Kochan.

Writing for WBUR, Prof. Emeritus Thomas Kochan and Wilma Liebman, former chair of the National Labor Relations Board, explore the current rise in worker activism and how to rebalance the relationship between employees and management. “The challenge, as ever, is to translate successful organizing campaigns into successful negotiations, resulting in labor agreements that provide ongoing representation for workers,” they write.

Prof. Anna Stansbury speaks with Tracy Alloway and Joe Weisenthal of Bloomberg’s Odd Lots podcast about her research on the labor market and worker power. “In my work, when I'm trying to measure worker power," says Stansbury, "I'm trying to say, ‘What would a given worker be paid in a kind of market situation without that power? And then how do different factors give that worker the ability to share in the profits of the firm?’"

Joseph Coughlin, director of the MIT AgeLab, writes for Forbes about the impact Baby Boomer and Gen X retirement can have on the increasing labor shortage in the United States. “While some millennials can’t wait for the Boomers and older Gen X’ers to step aside in the job market, there are critical labor shortfalls in many key industries that will be sharply felt by Millennials as consumers and as the next generation of leadership in business and government,” writes Coughlin.

MIT researchers have found five main predictors of attrition: toxic work culture, job insecurity, stressing innovation, not being recognized for performance, and poor response to Covid-19, reports Meghan M. Biro for Forbes. “Everything boils down to valuing your people – and possibly undertaking a bout of serious self-assessment,” writes Biro.

Amazon workers from Staten Island have become the first group to vote in favor of unionizing, reports Ari Levy and Annie Palmer for CNBC. “I would expect now that there is this first victory on the part of a union that Amazon is going to have to reassess its labor relations strategy and begin to negotiate in good faith to reach an agreement,” says Prof. Tom Kochan.

New York Times reporter Steve Lohr spotlights how the William & Flora Hewlett Foundation and the Omidyar Network have made a gift to help establish a new program that will analyze forces contributing to the erosion of job quality and labor market opportunity for workers without college degrees. “Markets are terrific, but we have to overcome this notion that ‘markets are autonomous — so just leave it to the market,’” says Prof. David Autor. “That fatalism is a decision.”

Bloomberg reporter Ben Holland spotlights “The Work of the Future: Building Better Jobs in an Age of Intelligent Machines” – a new book written by Prof. David Autor, Prof. David Mindell and Elizabeth Reynolds PhD ’10 – about the future of job mobility and social safety nets in the United States.