CHALLENGE OF D-R
Glen C. Cain
1. Dissatisfaction with pace and progress of reform war
on poverty, possible relation to Vietnam protester spirit.
2. Determination of wage rates, number employed, and resulting
a. Theory of demand - marginal productivity theory - based
on profit max. of employers
b. Theory of supply - based on theory of utility max of
(1) theory of investment in human capital (kind of work skill supplied)
(2) theory of labor/leisure - amount of work supplied
3. Cain means neo operators on two levels, one for empirical
research but due to unity would also have identical qualitative predictions
from strength of underlying hypothesis.
4. Persistent of poverty (most important to DR), failure
of education and training programs, education is used as a screening device,
income distribution remains as unequal as twenty years ago. If discrimination
is fact labor theory fails to account for it (Marx does), roles of monopolies,
unions and protected labor marks (both agree this interferes with free
competition), role of psychological variables, alienation of American workers.
5. Job competition: number and type of job slots tech.
determined, internal labor market. Dual labor market: (Doeringer &
Piore) primary/secondary. Radical, segmented and stratified: Marxian dialectical
and stresses class conflict, exploitation of poor.
6. Cain feels this is a basic criticism of ortho, Mills
notes n.c. in labor guilds. Inequalities of remuneration opposite Adam
Smith's principle, especially in dirtier, low jobs.
7. Public employment, wage subsidy, antidiscrimination
programs, expansive macro to full employment. Pre-labor market conditions
of "consciousness," workers get more dominant role in work. Ortho:
disc. exogenous, ___ burden on private.
9. Realism of dual market, disc. a major challenge, neo
must show extent low human capital to effect.
10. Defense is statistical is historical variation of
model variables, blames DR for lack of attention to supply side.
Metho and theoretical question of value judgments, too
narrow question. Leisure to crime, harmony presumed just means willingness.
11. Does not begin to offer a theory of labor market that
can replace neo, T&M criticisms are not substantial.
12. Idea of endogenous determination of attitudinal variables
among workers, institutional dimensions of internal labor markets.
13. Helps stick out in new directions: nonwage dimension
of employment, occ. promotion paths, role of psychological variables to
performance, cost-benefit analyses of government intervention.
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