/FONT#0=NGR25/FONT#1=BDI25
␈↓␈↓↓␈↓
␈↓ ↓H
␈↓ α_Martin␈α⊃Feldstein␈α⊃in␈α⊃␈↓↓The␈α⊃Economics␈α⊃of␈α⊃the␈α⊃New␈α⊃Unemployment␈↓␈α⊃seems␈α⊃implicitly␈α⊃to␈α⊃have␈α⊃the
␈↓ ↓Hfollowing␈α
model␈α
of␈α
the␈α
jobs␈α
available␈α
to␈α
disadvantaged␈α
workers␈α
and␈α
paying␈α
near␈α
the␈α
minimum␈α
wage.

␈↓ α_The␈α⊂job␈α∂is␈α∂"dead␈α∂end"␈α∂and␈α∂"has␈α∂no␈α∂future",␈α∂but␈α∂if␈α∂only␈α∂the␈α∂employer␈α∂didn't␈α∂have␈α∂to␈α∂pay␈α∂the
␈↓ ↓Hminimum␈αwage␈αhe␈αcould␈α
combine␈α
it␈α
with␈α
training␈α
for␈α
a␈α
better␈α
job.␈α
It␈α
can␈α
also␈α
be␈α
made␈α
more␈α
attractive␈α
so
␈↓ ↓Hthere␈α
will␈α
be␈α
less␈α
labor␈α
turnover.

␈↓ α_No␈αdoubt␈αthere␈αare␈αsome␈αjobs␈αlike␈αthis,␈αbut␈αmy␈αproblem␈αin␈αbelieving␈αit␈αis␈αthat␈α
I␈α
can't␈α
think␈α
of␈α
any
␈↓ ↓Hexamples.␈αThe␈αjobs␈αI␈αknow␈αthat␈αpay␈αnear␈αthe␈αminimum␈αwage␈αare␈αdishwasher,␈αcounterman,␈αhouseworker,
␈↓ ↓Hmovie␈α∀usher,␈α∀and␈α∪service␈α∪station␈α∪attendant.␈α∪It␈α∪seems␈α∪to␈α∪me␈α∪that␈α∪these␈α∪jobs␈α∪have␈α∪the␈α∪following
␈↓ ↓Hcharacteristics:

␈↓ α_1.␈αThey␈αcannot␈αbe␈αeliminated␈αat␈αthe␈αpresent␈αlevel␈αof␈αtechnology.␈αSeveral␈αmillions␈αof␈αpeople␈αhave
␈↓ ↓Hto␈α
be␈α
found␈α
to␈α
do␈α
them.

␈↓ α_2.␈α⊃They␈α⊃cannot␈α⊃be␈α⊂enriched␈α⊂in␈α⊂a␈α⊂significant␈α⊂way.␈α⊂They␈α⊂can␈α⊂be␈α⊂made␈α⊂to␈α⊂pay␈α⊂better␈α⊂and␈α⊂the
␈↓ ↓Hworking␈αconditions␈αcan␈αbe␈αimproved.␈αThere␈αis␈αno␈αway␈αof␈αdoubling␈αthe␈αproductivity␈αof␈αa␈αmovie␈αusher␈αor
␈↓ ↓Ha␈α∞houseworker␈α∞by␈α∞training.␈α∞Of␈α∞course,␈α∞some␈α∞countermen␈α∞can␈α∞be␈α∞trained␈α∞to␈α∞become␈α∞hamburger␈α∞stand
␈↓ ↓Hmanagers,␈α
but␈α
this␈α
won't␈α
reduce␈α
the␈α
requirement␈α
for␈α
countermen.

␈↓ α_3.␈αOften␈αtheir␈αlow␈αpay␈αis␈αnot␈αrelated␈αto␈αany␈α
specific␈α
characteristics␈α
of␈α
the␈α
job␈α
itself␈α
but␈α
rather␈α
to
␈↓ ↓Hthe␈α∞bargaining␈α∞power␈α∞of␈α∞a␈α∞group␈α∞of␈α∞workers␈α∞or␈α∞to␈α
some␈α
characteristic␈α
of␈α
the␈α
industry.␈α
Thus,␈α
nurses
␈↓ ↓Hnow␈α
get␈α
more␈α
than␈α
some␈α
workers␈α
they␈α
used␈α
to␈α
get␈α
less␈α
than.

␈↓ α_To␈αthe␈αextent␈αthat␈αthe␈αlow␈αpaying␈αjobs␈αsatisfy␈α
this␈α
model␈α
rather␈α
than␈α
Feldstein's,␈α
we␈α
come␈α
to␈α
the
␈↓ ↓Hconclusion␈α∂that␈α∂the␈α∂minimum␈α∂wage␈α∂ought␈α∂to␈α∂be␈α∂increased␈α∞rather␈α∞than␈α∞reduced.␈α∞This␈α∞will␈α∞presumably
␈↓ ↓Hincrease␈α∩the␈α∩attractiveness␈α∩of␈α∩these␈α∩jobs␈α⊃relative␈α⊃to␈α⊃the␈α⊃various␈α⊃ways␈α⊃of␈α⊃getting␈α⊃money␈α⊃without
␈↓ ↓Hworking.␈α
It␈α
is␈α
also␈α
fairer.

␈↓ α_Of␈α∂course,␈α∂if␈α∂the␈α∂jobs␈α∂are␈α∂intrinsically␈α∂uninteresting,␈α∂then␈α∂increasing␈α∂the␈α∂pay␈α∂will␈α∞cause␈α∞some
␈↓ ↓Hpeople␈αto␈αwork␈α
less␈α
in␈α
order␈α
to␈α
have␈α
more␈α
leisure.␈α
This␈α
should␈α
be␈α
accepted␈α
as␈α
a␈α
desirable␈α
development,
␈↓ ↓Hand␈αas␈αFeldstein␈αsuggests,␈αthe␈αunemployment␈αinsurance␈αlaws␈αshould␈α
be␈α
reworked␈α
so␈α
that␈α
this␈α
voluntary
␈↓ ↓Hidleness␈α∩doesn't␈α⊃get␈α⊃confused␈α⊃with␈α⊃real␈α⊃unemployment.␈α⊃Moreover,␈α⊃if␈α⊃increasing␈α⊃the␈α⊃minimum␈α⊃wage
␈↓ ↓Hcauses␈α∞some␈α∞of␈α∞these␈α∞jobs␈α∞to␈α∞be␈α∞eliminated␈α∞by␈α∞mechanization␈α∞-␈α∞good␈α∞riddance.␈α∞Increasing␈α∞aggregate
␈↓ ↓Hdemand␈α
will␈α
get␈α
new␈α
jobs,␈α
and␈α
the␈α
more␈α
efficient␈α
economy␈α
will␈α
make␈α
more␈α
money␈α
available␈αfor␈αdoing
␈↓ ↓Hgood.

␈↓ α_I␈α⊃fear␈α⊃that␈α⊃if␈α⊃Feldstein's␈α⊃proposals␈α⊃are␈α⊃adopted,␈α⊃instead␈α⊃of␈α⊃handing␈α⊂the␈α⊂new␈α⊂movie␈α⊂usher␈α⊂a
␈↓ ↓Hflashlight␈αand␈αstarting␈α
him␈α
to␈α
work␈α
at␈α
$1.60␈α
per␈α
hour,␈α
they␈α
will␈α
start␈α
him␈α
at␈α
$1.20␈α
an␈α
hour␈α
but␈α
enrich␈α
his
␈↓ ↓Hlife␈αwith␈αtwo␈αhours␈αa␈αday␈αof␈αlectures␈αand␈αlaboratory␈αon␈αhow␈αto␈αrepair␈αthe␈αflashlight␈αand␈αhow␈αto␈αplace
␈↓ ↓Hthe␈α
people␈α
with␈α
bags␈α
of␈αpopcorn␈αso␈αthey␈αwon't␈αdisturb␈αothers.␈αHe␈αwill␈αalso␈αhave␈αto␈αread␈α␈↓↓The␈αFall␈αof
␈↓ ↓Hthe␈αHouse␈αof␈αUsher␈↓␈αin␈αorder␈αto␈αget␈αbeyond␈αapprenticeship.␈αOf␈αcourse,␈αthe␈αjob␈αwill␈αhave␈αa␈αfuture␈α-␈αone
␈↓ ↓Hcan␈αaspire␈αto␈αbecome␈αa␈αlecturer␈αin␈αusherology.␈αWhen␈αjob␈αturnover␈αincreases,␈αthe␈αadministrators␈αof␈αthe
␈↓ ↓Husher␈αtraining␈αprogram␈αwill␈αpropose␈αmore␈αintensive␈αlectures,␈αfinanced␈α
perhaps,␈α
by␈α
reducing␈α
further␈α
the
␈↓ ↓Hstipend␈α
of␈α
the␈α
trainees.

␈↓ α_Kidding␈α∂aside,␈α∞the␈α∞effect␈α∞of␈α∞changes␈α∞in␈α∞the␈α∞minimum␈α∞wage␈α∞and␈α∞other␈α∞actios␈α∞designed␈α∞to␈α∞affect
␈↓ ↓Hunemployment␈α∃depends␈α∀on␈α∀how␈α∀many␈α∀jobs␈α∀there␈α∀are␈α∀which␈α∀can␈α∀increase␈α∀their␈α∀productivity␈α∀by
␈↓ ↓Hupgrading␈α∞and␈α∞by␈α
also␈α
on␈α
the␈α
possibilities␈α
for␈α
mechanizing␈α
these␈α
low␈α
level␈α
jobs.␈α
This␈α
is␈α
not␈α
a␈α
matter
␈↓ ↓Hthat␈α∂can␈α∂be␈α∂answered␈α∂by␈α∂pure␈α∂economic␈α∂theory;␈α∞it␈α∞depends␈α∞on␈α∞the␈α∞characteristics␈α∞of␈α∞the␈α∞industries
␈↓ ↓Hconcerned.␈α∩Would␈α∩Professor␈α⊃Feldstein␈α⊃care␈α⊃to␈α⊃estimate␈α⊃the␈α⊃number␈α⊃of␈α⊃jobs␈α⊃satisfying␈α⊃the␈α⊃various
␈↓ ↓Hmodels?