"The Russell Sage series on job quality is a very welcome contribution in a world where employment seems to be polarizing. Low-Wage Work in Denmark is especially noteworthy because the Danish case is internationally regarded as a model to follow if we desire flexible labor markets without social exclusion. And, as Niels Westergaard-Nielsen and his colleagues show in their laudably balanced and empirically rich analyses, the model does seem to work. Danish low-wage workers clearly fare much better than elsewhere. This excellent study explains why. It is a must-read for policymakers and analysts; an indispensable resource for social scientists."
-GØSTA ESPING-ANDERSEN, professor of sociology, Universitat Pompeu Fabra, Barcelona

"All nations struggle with the problem of unskilled working-age people. 'Flexicurity' -few labor restrictions and a generous safety net-is Denmark's unique arrangement. There, the unskilled are not poor, move rapidly out of low-skill jobs, and are treated with dignity-all huge accomplishments. But the system also creates problems-high tax rates, welfare dependency, and costs, and the effective exclusion of immigrants. Low-Wage Work in Denmark, a volume in the Russell Sage series of systematic, cross- country analyses of low-wage work, gives us a careful and in-depth assessment-both blemishes and beauty-of this small country's approach."
-ROBERT HAVEMAN, professor emeritus of public affairs and economics, Robert M. La Follette School of Public Affairs, University of Wisconsin-Madison

"For millions of employed Americans, 'work doesn't pay,' occupational and social benefits are meager, and opportunities for shifting into substantially higher-paying work are scarce. American analysts often view low-paid work as the lamentable but inevitable byproduct of a flexible labor market, technological advancement, and the global economy. This first-rate volume will challenge that sense of resignation, as it vividly demonstrates that a multitude of institutional reforms could both reduce the incidence of low-wage work and lessen its problematic consequences. The Danish flexicurity model, which melds flexibility for employers with economic security for workers, operates alongside impressive economic outcomes, including comparatively high labor force participation, low unemployment, and high mobility out of low-wage work. This accessible collection outlines an institutional blueprint that could help structure an overhaul of low-wage work in the United States should the political opportunity arise."
-JANET GORNICK, professor, political science and sociology, City University of New York, and director, Luxembourg Income Study

The Danish economy offers a dose of American labor market flexibility inside a European welfare state. The Danish government allows employers a relatively high level of freedom to dismiss workers, but also provides generous unemployment insurance. Widespread union coverage and an active system of collective bargaining help regulate working conditions in the absence of strong government regulation. Denmark’s rate of low-wage work—8.5 percent—is the lowest of the five countries under analysis. In Low-Wage Work in Denmark, a team of Danish researchers combines comprehensive national registry data with detailed case studies of five industries to explore why low-end jobs are so different in Denmark. Some jobs that are low-paying in the United States, including hotel maids and meat processors, though still demanding, are much more highly compensated in Denmark. And Danes, unlike American workers, do not stay in low-wage jobs for long. Many go on to higher paying jobs, while a significant minority ends up relying temporarily on income support and benefits sustained by one of the highest tax rates in the world.  Low-Wage Work in Denmark provides an insightful look at the particularities of the Danish labor market and the lessons it holds for both the United States and the rest of Europe.

NIELS WESTERGAARD-NIELSEN is professor of economics at the School of Business, University of Aarhus.

CONTRIBUTORS: Anne-Mette Sonne, Nuka Buck, Tor Eriksson, Lars Esbjerg, Jacob K. Eskildsen, Klaus K. Grunert, Jingkun Li, Ann-Kristina Lokke Nielsen, Robert Solow, Ole Henning Sorensen.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

"In the 'war of the models' between variants of capitalism, the Dutch economy has had good and bad publicity. There is the 'Dutch disease' that prices manufacturing out of some markets and criticisms of Dutch collective bargaining as being insufficiently centralized or decentralized. There is also much ballyhoo about the virtues of the Polder model and Dutch economic planning. By examining how the Dutch have dealt with less skilled and low-wage work, Low-Wage Work in the Netherlands illuminates how the Dutch system operates to deal with a problem that affects all economies. The depth of discussion of specific industries and workers offers more insight into how the Dutch do it than the broad generalizations that abound in analyses of the varying capitalist models."
-RICHARD B. FREEMAN, Herbert Ascherman Chair in Economics, Harvard University and Senior Research Fellow in Labour Markets, London School of Economics

"A lot has been written about the so-called Polder model, the Dutch model of consensus building, to which many of its economic successes of the 1990s have been attributed. However, little attention has been paid to the downside of this success: the strong growth of low-wage employment. This volume fills the gap by giving extensive consideration to the bottom segment of the labor market. It is unique in discussing and analyzing low-wage work at the national level as well as at the industry and the company level. It convincingly demonstrates how strong job growth may have the price of erosion of income security and job quality at the lower end of the labor market. Reading Low-Wage Work in the Netherlands is indispensable for everyone who wants to know how the Dutch Polder model really works."
-PAUL DE BEER, Henri Polak Professor of Industrial Relations, University of Amsterdam

"Any student of the low-wage labor market must at some point answer several questions. How much can institutional differences affect the strategies that firms adopt? How, in turn, can these strategies affect outcomes for low-wage workers? Is it possible to create a high road environment for low-skill employment? This fascinating study provides an in-depth analysis that helps answer such questions in industries familiar to all labor market researchers-retail, hotels, health care, call centers, and food-in the context of the 'Dutch model.' The authors weave rich case study information together with statistical data to provide a vivid tapestry of work conditions under the 'Dutch model.' Both their findings and their careful analytic approach make Low-Wage Work in the Netherlands a must read for serious labor market researchers."
-JULIA I. LANE, senior vice president, National Opinion Research Center, University of Chicago

The Dutch economy has often been heralded for accomplishing solid employment growth within a generous welfare system. In recent years, the Netherlands has seen a rise in low-wage work and has maintained one of the lowest unemployment rates in the European Union. Low-Wage Work in the Netherlands narrows in on the causes and consequences of this new development. The authors find that the increase in low-wage work can be partly attributed to a steep rise in the number of part-time jobs and non-standard work contracts—46 percent of Dutch workers hold part-time jobs. The decline in full-time work has challenged historically powerful Dutch unions and has led to a slow but steady dismantling of many social insurance programs from 1979 onward. At the same time, there are hopeful lessons to be gleaned from the Dutch model: low-wage workers benefit from a well-developed system of income transfers, and many move on to higher paying jobs. Low-Wage Work in the Netherlands paints a nuanced picture of the Dutch economy by analyzing institutions that both support and challenge its low-wage workforce.

WIEMER SALVERDA is director of the Amsterdam Institute for Advanced Labour Studies.

MAARTEN VAN KLAVEREN is researcher and consultant at STZ Consultancy and Research.

MARC VAN DER MEER is director of studies at the Amsterdam Institute for Advanced Labour Studies.

CONTRIBUTORS: Ria Hermanussen, Robert Solow, Wim Sprenger, Kea Tijdens, Arjen Van Halem. 

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

"This highly authoritative study could not be more timely. At a time when many developed countries are having to strengthen their minimum wage provisions in the wake of retreating trade unionism, Low- Wage Work in the United Kingdom's use of sectoral studies greatly enriches our understanding of the causes and consequences of low pay in Britain."
-WILLIAM BROWN, Montague Burton Professor of Industrial Relations and Master of Darwin College, Cambridge University

"This excellent volume combines analysis of the general trends underlying the dramatic growth of low-wage employment in the United Kingdom with detailed case studies of industries in which such work is concentrated. Readers will gain a deeper understanding of the ways in which new government policies and declining trade union influence combined to transform British labor markets over the last three decades, leading to the expansion of low-wage work not only among women, immigrants and racial-ethnic minorities, but also among men across the demographic spectrum. The industry case studies draw on rich, original qualitative data to construct compelling on-the-ground portraits of low-wage work in a variety of settings. A final chapter includes discussion of public policy recommendations. Low-Wage Work in the United Kingdom is a provocative and much-needed analysis that should interest not only area specialists but anyone concerned about the recent proliferation of low-wage work in advanced capitalist societies on both sides of the Atlantic."
-RUTH MILKMAN, professor of sociology and director, Institute of Industrial Relations, University of California, Los Angeles

"Part of an international cross-country program of research on low-wage work, this outstanding study by leading labor economists illuminates the nature, scale, and significance of low-wage work in the United Kingdom. It demonstrates the centrality of low-wage employment to the workings of the contemporary British economy and exposes its deleterious effects on the workers that undertake it. Low-Wage Work in the United Kingdom contradicts, among other things, the pernicious myth that work is increasingly dominated by high value, high-wage knowledge-based employment. It is vital reading for all researchers and policy-makers with a stake in building a better future for our labor force."
-PETER NOLAN, Montague Burton Professor of Industrial Relations, The University of Leeds

The United Kingdom's labor market policies place it in a kind of institutional middle ground between the United States and continental Europe. Low pay grew sharply between the late 1970s and the mid-1990s, in large part due to the decline of unions and collective bargaining and the removal of protections for the low paid. The changes instituted by Tony Blair's New Labour government since 1997, including the introduction of the National Minimum Wage, halted the growth in low pay but have not reversed it. Low-Wage Work in the United Kingdom explains why the current level of low-paying work remains one of the highest in Europe. The authors argue that the failure to deal with low pay reflects a policy approach which stressed reducing poverty, but also centers on the importance of moving people off benefits and into work, even at low wages. The U.K. government has introduced a version of the U.S. welfare to work policies and continues to stress the importance of a highly flexible and competitive labor market. A central policy theme has been that education and training can empower people to both enter work and to move into better paying jobs. The case study research reveals the endemic nature of low paid work and the difficulties workers face in escaping from the bottom end of the jobs ladder. However, compared to the United States, low paid workers in the United Kingdom do benefit from in-work social security benefits, targeted predominately at those with children, and entitlements to non-pay benefits such as annual leave, maternity and sick pay, and crucially, access to state-funded health care. Low-Wage Work in the United Kingdom skillfully illustrates the way that the interactions between government policies, labor market institutions, and the economy have ensured that low pay remains a persistent problem within the United Kingdom.

CAROLINE LLOYD is a senior research fellow at the Economic and Social Research Council Centre on Skills, Knowledge, and Organizational Performance.

GEOFF MASON is senior research fellow at the National Institute of Economic and Social Research, London.

KEN MAYHEW is fellow in economics at Pembroke College, Oxford.

CONTRIBUTORS: Marilyn Carroll, Johanna Commander, Eli Dutton, Damian Grimshaw, Susan James, Dennis Nickson,  Matthew Osborne, Jonathan Payne, Robert Solow, Philip Stevens , Chris Warhurst.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

“Low-Wage Work in the Wealthy World is an exceptionally valuable book for scholars, policy makers, and general readers. An outstanding cross-country group of scholars use a powerful comparative methodology to examine the size, causes, and consequences of low-wage labor markets in the United States and five European countries. These analyses reveal the complexity of the subject, but make it very clear that the fact that the United States has a larger low-wage labor market than any of these countries is the result of policies and institutions, not, as many economists assume, an inevitable tradeoff between job quality and the number of jobs. After all, these analysts show, global competition affects all economies, but low-wage workers vary from 25 percent of the U.S. work force to 8.5 percent of Denmark’s.”
—Ray Marshall, former U.S. Secretary of Labor and Audre and Bernard Rapoport Centennial Chair in Economics and Public Affairs, University of Texas at Austin 

“Low-Wage Work in the Wealthy World is poised to become the definitive study of low-paid employment in rich countries. This first-rate team of researchers, assembled by the Russell Sage Foundation, pairs an innovative research design—the systematic comparison of five low-paying industries across six high-income countries—with meticulous empirical work. The study incorporates multiple dimensions of low-paid work, blending qualitative and quantitative indicators, to produce an often-surprising portrait of variation across six democracies. yet these researchers’ larger contribution is their assessment of the institutional underpinnings of the prevalence, nature, and effects of low-paying work. They persuasively establish that several institutions ‘matter,’ including industrial relations systems, minimum wages, employment and product market regulations, and diverse social policies targeted on workers. Labor market scholars and policymakers everywhere will be challenged to consider the ways in which country-specific institutional reforms could reduce the incidence of low-paid work, raise its quality, and lessen its problematic consequences.”
—Janet Gornick, director, Luxembourg Income Study, and professor of political science and sociology, Graduate Center, CUNY

As global flows of goods, capital, information, and people accelerate competitive pressure on businesses throughout the industrialized world, firms have responded by reorganizing work in a variety of efforts to improve efficiency and cut costs. In the United States, where minimum wages are low, unions are weak, and immigrants are numerous, this has often lead to declining wages, increased job insecurity, and deteriorating working conditions for workers with little bargaining power in the lower tiers of the labor market. Low-Wage Work in the Wealthy World builds on an earlier Russell Sage Foundation study (Low-Wage America) to compare the plight of low-wage workers in the United States to five European countries—Denmark, France, Germany, the Netherlands, and the United Kingdom—where wage supports, worker protections, and social benefits have generally been stronger. By examining low-wage jobs in systematic case studies across five industries, this groundbreaking international study goes well beyond standard statistics to reveal national differences in the quality of low-wage work and the well being of low-wage workers.

The United States has a high percentage of low-wage workers—nearly three times more than Denmark and twice more than France. Since the early 1990s, however, the United Kingdom, the Netherlands, and Germany have all seen substantial increases in low-wage jobs. While these jobs often entail much the same drudgery in Europe and the United States, quality of life for low-wage workers varies substantially across countries. The authors focus their analysis on the “inclusiveness” of each country’s industrial relations system, including national collective bargaining agreements and minimum-wage laws, and the generosity of social benefits such as health insurance, pensions, family leave, and paid vacation time—which together sustain a significantly higher quality of life for low-wage workers in some countries.

Investigating conditions in retail sales, hospitals, food processing, hotels, and call centers, the book’s industry case studies shed new light on how national institutions influence the way employers organize work and shape the quality of low-wage jobs. A telling example: in the United States and several European nations, wages and working conditions of front-line workers in meat processing plants are deteriorating as large retailers put severe pressure on prices, and firms respond by employing low-wage immigrant labor. But in Denmark, where unions are strong, and, to a lesser extent, in France, where the statutory minimum wage is high, the low-wage path is blocked, and firms have opted instead to invest more heavily in automation to raise productivity, improve product quality, and sustain higher wages. However, as Low-Wage Work in the Wealthy World also shows, the European nations’ higher level of inclusiveness is increasingly at risk. “Exit options,” both formal and informal, have emerged to give employers ways around national wage supports and collectively bargained agreements. For some jobs, such as room cleaners in hotels, stronger labor relations systems in Europe have not had much impact on the quality of work.

Low-Wage Work in the Wealthy World offers an analysis of low-wage work in Europe and the United States based on concrete, detailed, and systematic contrasts. Its revealing case studies not only provide a human context but also vividly remind us that the quality and incidence of low-wage work is more a matter of national choice than economic necessity and that government policies and business practices have inevitable consequences for the quality of workers’ lives.

JÉRÔME GAUTIÉ is professor of economics at the University of Paris 1 Panthéon-Sorbonne.

JOHN SCHMITT is senior economist with the Center for Economic and Policy Research in Washington, D.C.

CONTRIBUTORS: Eileen Appelbaum, Rosemary Batt, Peter Berg, Annette Bernhardt, Gerhard Bosch, Francoise Carre, Laura Dresser, Jacob Eskildsen, Damian Grimshaw, Klaus G. Grunert, Karen Jaehrling, Susan James, Caroline Lloyd, Geoff Mason, Ken Mayhew, Philippe Mehaut, Philip Moss,  Wiemer Salverda, Chris Tillly, Marc Van Der Meer, Maarten Van Klaveren, Achim Vanselow, Dorothea Voss-Dahm, Chris Warhurst, Claudia Weinkopf, Niels Westergaard-Nielsen.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

"Low-Wage America brings a rich scholarly perspective [to] studies of a wide range of low-wage industries. The result of this effort is by far the best portrait available of the lower reaches of the job market."
-INDUSTRIAL AND LABOR RELATIONS REVIEW

"Anyone wanting to know what's happened to low-wage workers in America should read this thoughtful and insightful collection. It brilliantly illuminates a corner of the labor market that's too often in the darkness."
-ROBERT B. REICH, former U.S. Secretary of Labor; Brandeis University

"The rules of the workplace have radically changed in recent decades with important consequences for employees up and down the income scale. Low-Wage America provides a wealth of information on how these developments have played out for people in the middle and lower reaches of the job market. The great strength of this book is the careful and detailed case studies. Drawing on extensive fieldwork, the authors provide a remarkably rich and textured portrait of the American job market, which is made even more useful and vivid because it is anchored in the specifics of firms and industries. I highly rec ommend Low-Wage America to everyone concerned about the future of work in this country."
-PAUL OSTERMAN, Massachusetts Institute of Technology Sloan School of Management

"Low-Wage America is a wake up call to all who believe the term 'working poor' should be an oxymoron.
The authors provide the most thorough analysis available on the state of the working poor in America
and show what can be done about this disgraceful national problem. All who share the simple view that
people who work hard should earn a decent living need to read this book and take it as a call to action."
-THOMAS A. KOCHAN, George Maverick Bunker Professor of Work and Employment Relations,
Massachusetts Institute of Technology Sloan School of ManagementAbout 27.5 million Americans—nearly 24 percent of the labor force—earn less than $8.70 an hour, not enough to keep a family of four out of poverty, even working full-time year-round. Job ladders for these workers have been dismantled, limiting their ability to get ahead in today’s labor market. Low-Wage America is the most extensive study to date of how the choices employers make in response to economic globalization, industry deregulation, and advances in information technology affect the lives of tens of millions of workers at the bottom of the wage distribution.

Based on data from hundreds of establishments in twenty-five industries—including manufacturing, telecommunications, hospitality, and health care—the case studies document how firms’ responses to economic restructuring often results in harsh working conditions, reduced benefits, and fewer opportunities for advancement. For instance, increased pressure for profits in newly consolidated hotel chains has led to cost-cutting strategies such as requiring maids to increase the number of rooms they clean by 50 percent. Technological changes in the organization of call centers—the ultimate “disposable workplace”—have led to monitoring of operators’ work performance, and eroded job ladders. Other chapters show how the temporary staffing industry has provided paths to better work for some, but to dead end jobs for many others; how new technology has reorganized work in the back offices of banks, raising skill requirements for workers; and how increased competition from abroad has forced U.S. manufacturers to cut costs by reducing wages and speeding production.

Although employers’ responses to economic pressures have had a generally negative effect on frontline workers, some employers manage to resist this trend and still compete successfully. The benefits to workers of multi-employer training consortia and the continuing relevance of unions offer important clues about what public policy can do to support the job prospects of this vast, but largely overlooked segment of the American workforce. Low-Wage America challenges us to a national self-examination about the nature of low-wage work in this country and asks whether we are willing to tolerate the profound social and economic consequences entailed by these jobs.

EILEEN APPELBAUM is professor and director of the Center for Women and Work at Rutgers University.

ANNETTE BERNHARDT is senior policy analyst at the Brennan Center for Justice, New York University School of Law.

RICHARD J. MURNANE is the Thompson Professor of Education and Society, Harvard Graduate School of Education and research associate at the National Bureau of Economic Research.

CONTRIBUTORS: David H. Autor, John W. Ballentine Jr., Ann P. Baretl, Rosemary Batt, Peter Berg, Rachel Connelly, Deborah S. DeGraff, Laura Dresser, George A. Erickcek, Ronald F. Ferguson, David Finegold, Ann Frost, Erin Hatton, Susan Helper, Susan N. Haouseman, Larry W. Hunter, Casey Ichniowski, Derek C. Jones, Arne L. Kalleberg, Takao Kato, Morris M. Kleiner, Julia Lane, Alec Levenson, Frank Levy, Philip Moss, Gil Pruess, Harold Salzman, Kathryn Shaw, Chris Tilly, Mark Van Buren, Adam Weinberg, Steffanie Wilk, Rachel A. Willis.

A Volume in the RSF Case Stud ies of Job Quality in Advanced Economies

"For those who think that low-wage workers are just 'unskilled' workers who somehow deserve their fates, Low-Wage Work in France is a must read, in that it shows how their fates vary across sectors within a given country (France) and across countries, within Europe or across the Atlantic."
-DANIEL COHEN, professor, École Normale Supérieure and Paris School of Economics, and director, CEPREMAP

"France has replaced Sweden as the quintessential example of the over-regulated, bloated welfare state that strangles the market economy, producing inefficient workplaces, and undermines incentives to work. As in the case of Sweden, the reality is much more complicated. With a comprehensive overview chapter and five case studies of narrowly framed jobs in different sectors, Eve Caroli and the contributors to this volume show that a high minimum wage has successfully limited the incidence of low wages, but that there has been a growing intensification of work, a development that challenges this orthodox view. Anyone who cares about understanding the real nature of low wage work in France must read this excellent book."
-DAVID R. HOWELL, professor of economics, Milano The New School for Management and Urban Policy

"Low-Wage Work in France will surely take its place among the Russell Sage Foundation's landmark studies of low paid work in the United States and Europe. A team of distinguished labor economists and sociologists highlights the harsh nature of low-wage work in France, the intensity of its work rhythms and its insecurity. The causes, they argue, often lie in a mix of intense competition in the product markets of these sectors, combined with monopsony power in their labor markets. The institutional structure of French labor markets in conjunction with the employment systems operated by private and public sector organizations shape the incidence of low-wage work, and help explain the specificity of the French case compared with other countries. This work will prove invaluable to all who wish to understand the causes of low-wage employment, and to develop policies to alleviate its consequences for the workers concerned."
-DAVID MARSDEN, professor of industrial relations, London School of Economics

In France, low wages have historically inspired tremendous political controversy. The social and political issues at stake center on integrating the working class into society and maintaining the stability of the republican regime. A variety of federal policies—including high minimum wages and strong employee protection—serve to ensure that the low-wage workforce stays relatively small. Low-Wage Work in France examines both the benefits and drawbacks of this politically inspired system of worker protection. France’s high minimum wage, which is indexed not only to inflation but also to the average increase in employee wages, plays a critical role in limiting the development of low-paid work. Social welfare benefits and a mandatory thirty-five hour work week also make life easier for low-wage workers. Strong employee protection is a central characteristic of the French model, but high levels of protection for employees may also be one of the causes of France’s chronically high rate of unemployment. The threat of long-term unemployment may, in turn, contribute to a persistent sense of insecurity among French workers. Low-Wage Work in France provides a lucid analysis of how a highly regulated labor market shapes the experiences of workers—for better and for worse.

ÈVE CAROLI is professor of economics at University Paris X.

JÉRÔME GAUTIÉ is professor of economics at the University of Paris 1 Panthéon-Sorbonne.

CONTRIBUTORS: Anne Marie Arborio, Philippe Askenazy, Mathieu Beraud, Jean-Baptiste Berry, Jacques Bouteiller, Lise Causse, Thierry Colin, Emilie Feriel, Benoit Grasser, Christine Guegnard, Annie Lamenthe, Philippe Mehaut, Sylvie-Anne Meriot, Philippe Mosse, Sophie Prunier-Poulmaire, Robert Solow.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies

"Low-Wage Work in Germany is a valuable addition to knowledge on recent changes in German labor markets. It not only documents the extent and growth of low-wage work, but also offers well researched explanations for these developments in terms of changes in industrial systems and corporate governance, the fragmentation of work, and the weakening of collective agreements. This analysis is of interest in all industrialized countries. It also offers an important scientific contribution to the current debate in Germany on minimum wage policy."
-GERRY RODGERS, International Institute for Labour Studies, Geneva

"The German social model was praised for many decades because of its low level of social exclusion. Now low-wage work nearly reaches the high level of the United States. The brilliant analysis of Gerhard Bosch, Claudia Weinkopf, and their coauthors helps us understand the dramatic changes of the German social model after the unification. What happens in the strongest European economy is decisive for the European Social model. Therefore, Low-Wage Work in Germany is a must-read for policymakers, analysts, and researchers interested in Europe and the future of the welfare state."
-REINER HOFFMANN, European Trade Union Confederation

"This book challenges our understanding of the German social market economy by expertly documenting the incidence and implications of low-wage work in Germany. Combining labor market analysis with industry case studies, the authors provide a detailed and comprehensive treatment of low-wage work across key occupations. The surprising finding that the share of low-wage work in Germany has reached a level nearly as high as the United States and the United Kingdom makes Low-Wage Work in Germany essential reading for those interested in the German economy."
-PETER BERG, Michigan State University

In recent years, the German government has intentionally expanded the low-wage work sector in an effort to reduce exceptionally high levels of unemployment. As a result, the share of the German workforce employed in low-paying jobs now rivals that of the United States. Low Wage Work in Germany examines both the federal policies and changing economic conditions that have driven this increase in low-wage work. The new “mini-job” reflects the federal government’s attempt to make certain low-paying jobs attractive to both employers and employees. Employers pay a low flat rate for benefits, and employees, who work a limited number of hours per week, are exempt from social security and tax contributions. Other factors, including slow economic growth, a declining collective bargaining system, and the influx of foreign workers, also contribute to the growing incidence of low-wage work. Yet while both Germany and the United States have large shares of low-wage workers, German workers receive health insurance, four weeks of paid vacation, and generous old age support—benefits most low-wage workers in the United States can only dream of. The German experience offers an important opportunity to explore difficult trade-offs between unemployment and low-wage work.

GERHARD BOSCH is professor of sociology at the University of Duisburg-Essen.

CLAUDIA WEINKOPF is deputy director of the Institute for Work, Skills, and Training at the University of Duisburg-Essen.

CONTRIBUTORS: Lars Czommer, Karen Jaehrling, Thorsten Kalina, Robert Solow, Achim Vanselow, Dorothea Voss-Dahm.

A Volume in the RSF Case Studies of Job Quality in Advanced Economies