When faced with rising wage inequality and large numbers of low-wage jobs, policy makers are increasingly looking to innovations in the business community for solutions. Advocates argue that "high performance systems" will both strengthen the competitiveness of American firms and improve the quality of jobs. But the proposed benefits for workers remain largely untested. Drawing on a series of case studies, we therefore examine the effect of firm restructuring on job quality, defined in terms of wages, benefits, and the opportunities for skill acquisition and promotion. The firms were chosen from the traditionally low-wage retail trade industry and each had implemented some level of reform in both the "production" and the service ends of their operations. Ultimately, however, it is unclear whether the high performance model holds much promise, at least in this sector. The reforms did create somewhat more interesting and varied jobs. But regardless of the extent of innovation and despite the strong performance of these firms, we found very little improvement either in wages or in the chances for upward mobility from entry-level positions. These findings question the simple delineation between an efficient "high road" and an inefficient "low road." In some contexts, a highly rationalized and low-wage business strategy may be more efficient. And even where high-road innovations are implemented, low wages may still persist, because productivity gains are translated into price cuts instead of wage increases. In those firms where job quality was above average, employers turned to college students and experienced workers rather than investing in the training of low-skill workers. These points have several implications for public policy, which are taken up at the conclusion of the paper.
This article uses a case study of the internship program at LaGuardia Community College in New York City to explore the crucial issue of employer participation in work-based learning programs. Using a unique data set that includes information on over 17,000 internship placements occurring between 1984 and 1995, we explore how the nature and goals of the program have changed in response to the difficulties encountered in recruiting and retaining employer participants. A primary conclusion is that the program has shifted its focus from occupational training to career exploration and the acquisition of generic workplace skills.
