ERIC Number: ED288081
Record Type: RIE
Publication Date: 1983-Sep
Reference Count: 0
Industrial Dislocation and Its Implications for Public Policy.
The economy is well on its way toward a restructuring characterized by deindustrialization of the old manufacturing base and dualism in the evolving jobs distribution. These two phenomena cause serious social problems, including high levels of unemployment, downward occupational mobility, and a significant increase in earnings inequality. To combat deindustrialization and economic dualism, government at the federal and state levels will need to intervene more directly in the private market. Three types of policies are required: an expansionary fiscal and monetary policy, an industrial policy that includes various forms of short-run "protectionism," and a restructuring of the lower mode of the labor market. Sole reliance on the demand side of the market is not enough. To eliminate structural unemployment, reorganizing the job distribution and retraining the labor force must be pursued simultaneously. To accommodate the trend toward frequent occupational changes during a worker's lifetime, education and training must take on the dimension of lifelong learning. The government must find new sources of revenue for this expanded education and training effort. One proposed plan would make the government an "equity investor" in human capital. This investment might take the form of education and training in state accredited vocational or higher education programs, and the recipients would repay the government through a surcharge on the regular federal income tax. (YLB)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Paper prepared for the Annual Policy Forum on Employability Development, "Displaced Workers: Implications for Educational and Training Institutions" (Washington, DC, September 13-14, 1983).