Can a Worker Get a Break? (Take Two)

401k_2 Cross Posted: Workplace Prof Blog

A follow-up to yesterday’s post discussing stagnating wages and later retirement ages (this one from the Washington Post):

Six months ago, Ivan Sanchez was optimistic about his future. He had recently earned a bachelor’s degree in business management and was writing a book about growing up among gangs and guns in the Bronx.

Then he was threatened by something else: a credit card bill, student and car loan debt, higher gas bills and rising rent. With two high school age children in need of clothing and school supplies and a toddler in need of much more, it didn’t take very long for Sanchez’s optimism to fade. That’s when he decided to do what any financial planner would advise against: He dipped into his 401(k) retirement plan.

Continue ReadingCan a Worker Get a Break? (Take Two)

Lawyers and the Economic Red Shift

Dalton Conley, a sociologist at NYU, has an op-ed in today’s New York Times arguing that something novel has happened to the life of leisure: it isn’t very leisurely anymore. “[I]t is now the rich who are the most stressed out and the most likely to be working the most. Perhaps for the first time since we’ve kept track of such things, higher-income folks work more hours than lower-wage earners do.”

Conley hypothesizes that this intriguing development is the result of greater disparity in incomes at the top end of the scale — what he calls an “economic red shift.” That is, the richer you are, the faster people at the wealth level just above you seem to be pulling away. Combine that with the fact that people usually define their socioeconomic status in relative terms — i.e., how they compare to the Joneses — and you have an explanation for why hours increase with income. Or, as Conley puts it, at higher income levels, “the opportunity cost of not working is all the greater ( … since the higher we go, the more relatively deprived we feel).”

Continue ReadingLawyers and the Economic Red Shift

Can A Worker Get a Break?

Boss_button

Cross Posted on: Workplace Prof Blog

Apparently, they should not expect one in 2009 (or maybe not in this lifetime).

MSNBC (via AP) reports:

U.S. workers can expect skimpy raises in their base salaries next year, but top performers may still fatten their paychecks with merit compensation.

A study released Tuesday by Hewitt Associates, a human resources consulting firm, found base pay will rise by 3.8 percent in 2009, marking the seventh consecutive year of flat growth.

One-time performance-based pay, however, is expected to grow by 10.6 percent. That’s down slightly from 10.8 percent this year and 11.8 percent in 2007.

Great. On our way to more pay inequality in this country and to a place where workers will have to wait longer before being able to afford retirement (Yahoo! News via AP):

Continue ReadingCan A Worker Get a Break?