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As the current recession ends, many workers will not be returning to the jobs they once held--those jobs are gone. In The New Division of Labor, Frank Levy and Richard Murnane show how computers are changing the employment landscape and how the right kinds of education can ease the transition to the new job market.
The book tells stories of people at work--a high-end financial advisor, a customer service representative, a pair of successful chefs, a cardiologist, an automotive mechanic, the author Victor Hugo, floor traders in a London financial exchange. The authors merge these stories with insights from cognitive science, computer science, and economics to show how computers are enhancing productivity in many jobs even as they eliminate other jobs--both directly and by sending work offshore. At greatest risk are jobs that can be expressed in programmable rules--blue collar, clerical, and similar work that requires moderate skills and used to pay middle-class wages. The loss of these jobs leaves a growing division between those who can and cannot earn a good living in the computerized economy. Left unchecked, the division threatens the nation's democratic institutions.
The nation's challenge is to recognize this division and to prepare the population for the high-wage/high-skilled jobs that are rapidly growing in number--jobs involving extensive problem solving and interpersonal communication. Using detailed examples--a second grade classroom, an IBM managerial training program, Cisco Networking Academies--the authors describe how these skills can be taught and how our adjustment to the computerized workplace can begin in earnest.
- Sales Rank: #176713 in eBooks
- Published on: 2012-11-26
- Released on: 2012-11-26
- Format: Kindle eBook
From Publishers Weekly
As computers make inroads on every aspect of business, will people cease to matter? That’s the underlying question of this fascinating examination of the new labor market. In lucid prose, Levy and Murnane—economics professors at MIT and Harvard, respectively, and co-authors of the 1996 bestseller Teaching the New Basic Skills—present their answer, and their expectations regarding how computers will affect future wages and job distributions. They begin by debunking the common perception that computers eliminate jobs; the truth, they say, is that "computers are Janus-faced, helping to create jobs even as they destroy jobs." Supported by trend data—clearly laid out in charts, graphs and extensive footnotes—they argue that every technical advance since the introduction of computers to the workplace "shifts works away from routine tasks and towards tasks requiring expert thinking and complex communication." Levy and Murnane also assert that, while it is easy to point to all the new service economy jobs that involve standing behind fast-food counters, the majority of newly created jobs have put workers behind desks, in control of computers and in front of other humans where they are asked to use cognitive skills that outstrip any computer’s capability. But if the replacement of humans by computers isn’t a realistic crisis, the authors do point out another looming problem: a possible shortage in properly trained workers. Blue-collar and clerical workers displaced by computers already have a difficult time adjusting to the requirements of the new high-wage jobs, and, if educational curriculums aren’t changed to reflect the market’s demand for sophisticated thinking and communication, students may graduate without the skills they need either. Readers interested in labor and technology shouldn’t be put off by this book’s dull cover art. Its contents are anything but boring.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Review
"Behind all the angst about computers and outsourcing destroying American livelihoods lies a story about economic change and its effect on workers. With welcome clarity, brevity, and insight, Levy and Murnane tell us how to make sense of the time in which we live."--David Wessel, "Capital" columnist, Wall Street Journal
"In their brilliant new book The New Division of Labor: How Computers Are Creating the Next Job Market, Frank Levy and Richard J. Murnane write that the future belongs to people who excel at expert thinking (solving problems for which there are no rules-based solutions) and complex communication (interacting with people to acquire information, understand what that information means and persuade others of its implications for action)."--ComputerWorld
"A concise and easily accessible exploration of how the computer has shifted the demands for certain types of skills. Unlike the sky-is-falling commentators of the left and the technology-will-solve-all-problems cheerleaders of the right, Levy and Murnane use history, anecdotes and statistical analysis to delineate how technology will change the nature of work."--Washington Post
"[A] fascinating book. Not since the mathematical economist Truman Bewley interviewed 300 business executives and labor leaders for Why Wages Don't Fall during a Recession have sophisticated economists waded so deeply into the real-world circumstances of the important problem they are seeking to understand."--David Warsh, economicprincipals.com
"Remember that barely one-third of New York City's eighth-graders can read and do basic math. Then, read this book."--Nicole Gelinas, New York Post
"Frank Levy and Richard J. Murnane have written a very readable introduction to some key issues facing US workers in an increasingly informational economy. . . . [R]eaders exploring these ideas for the first time will find this an engaging and provocative introduction to an important set of political-economic processes that continue to bring information technology and human labor together, for better or for worse."--Greg Downey, International Review of Social History
From the Inside Flap
"A timely contribution. The New Division of Labor adds an important level of understanding to the changes we are witnessing in our labor markets. There is a message regarding the skills that are required by our economy and implications for educational reform and a message as to the political tensions that accompany this transition. The phenomenon described is of global relevance."---John Reed, Interim Chairman of the New York Stock Exchange
"Levy and Murnane go beyond conventional accounts of the effect of automation on the workforce to take a comprehensive and thoughtful look at how increased use of technology is affecting the occupational distribution in the U.S., and precisely what skills are likely to be valued in tomorrow's labor markets. This should be read by all who care about the future of work in America."--Lawrence H. Summers, President, Harvard University
"A fascinating, important book. Levy and Murnane tackle one of the most important questions in contemporary economics, how computers change the way work is organized and how labor markets reward skill. The answer they offer is simple and powerful."--James B. Rebitzer, Case Western Reserve University
"This book, through a wealth of examples, gives the reader a concrete sense of how computers have changed the nature of the workplace."--John Bound, University of Michigan
Most helpful customer reviews
13 of 13 people found the following review helpful.
A most insightful analysis of the historical labor data.
By Abacus
This is a very short and easy to read book. Yet, it is very informative and insightful. I have read many books covering the same theme written by Peter Drucker, John Naisbitt, Robert Reich, and Lester Thurow among other visionaries and economists. This one is the best on the subject for two reasons. The two authors studied the historical data much more extensively than the others. Also, this book is more focused. The authors did not get sidetracked by many related economic and political issues.
The authors extensive research dispels thoroughly the notion that computerization is bad for employment. To the contrary, computerization has increased both the quantity and quality of jobs.
The authors studied in detail labor trends over the past 40 years to support their conclusion. They uncovered the prescient work of Herbert Simon, who wrote an essay in the 1960s on the change in labor mix with the advent of technologies. The authors documented that for the most part Simon was correct. Due to computerization, the labor mix was going to change materially over the next several decades tilted towards a greater concentration of jobs associated with greater complexity in terms of critical thinking and judgment.
Just as Simon predicted, there is today a far greater percentage of the population involved in complex jobs associated with an intense critical thinking component. Such jobs include managers, professionals, technicians, and many sales related activities. By the same token, there is a far smaller percentage of the population engaged in blue collar routine work.
As mentioned, just as the quality of jobs (greater complexity) has improved immensely during the past several decades, so as the quantity. Between 1969 and 2000, the labor force grew by a staggering 63% from 83 million to 135 million. And, this surge in labor occurred during the most intense computerization era.
If we just observe the change in our own working lives, we can confirm that our job functions have changed dramatically for the better. We all use computers with increasingly powerful hardware that can handle increasingly complex software. In turn, the software replaces many of the routine components of our jobs. It also gives us quick access to a math level which would have been accessible only to PhDs not long ago. I don't think any of us would readily turn the clock back on computerization regarding our specific jobs. The authors will convince you the same is true at the macroeconomic level.
8 of 8 people found the following review helpful.
A Good Read!
By Rolf Dobelli
This excellent short book has implications far beyond its titular subject. Although ostensibly about the effect of computers on labor, it provides a model for thinking in economically rational terms about any kind of innovation that offers lower costs or greater efficiency. In a nutshell, scaremongers tend to exaggerate the threats and underestimate the benefits of such innovations. Some prognosticators, for example, predicted massive unemployment, poverty and social unrest due to employment disruptions stemming from computers. Why? Because computers could do many jobs, especially automated ones, faster and better. Something like the classical economic notion of comparative advantage is at work: computers and people should each do what they are good at. On the other hand, the authors analyze how innovation leaves many low-level, unskilled workers behind, and explain how and why the haves must make reasonable, just provisions for the have-nots. We believe that any reader who appreciates lucid analysis and clear prose will enjoy this book, and will gain understanding and perspective.
5 of 5 people found the following review helpful.
Best book on workforce in a long time.
By Christopher L. Bergstrom
If you only read one book this year, read this book. It will change the way you think about work, education and the global economy. Murnane and Levy ask two fundamental questions: What do computers do better than people? (A: rules-based thinking) What do people do better than computers? (A: pattern recognition)
Much of the work of the industrial economy was rules-based, both on the assembly line and in the manager's office. Most of the work in the innovation economy is based on pattern recognition, including what Murnane and Levy call expert thinking and complex communication. Their research shows that these are the skills for which demand is growing in the economy at all rungs of the job ladder.
I've found their argument so compelling that I have purchased copies of the book for most of the top policy-makers in my home state of Rhode Island. The ideas in the book are starting to shape the discussion of school reform and workforce development here. In particular, we are concerned that our school system, like those in every other state, is still producing labor for a rules-based industrial economy that no longer exists. While it's possible to absorb rules-based thinking from a book or a lecture, it's difficult to teach pattern recognition skills in a pure classroom setting. You learn to recognize patterns by actually doing it the company of someone who is already very good at it. It's the essence of good experiential learning and mentoring, which can no longer be thought of as a luxury in the education system. If we want to produce the workforce we need for an innovation economy, we'll need to make experiential learning a part of every K-12 and college experience.
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