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Capital Markets and Job Creation in the 21st Century

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Capital Markets and Job Creation in the 21st Century

Brookings Institution,

5 min read
5 take-aways
Audio & text

What's inside?

Policy makers should revisit their assumptions about job creation in the 21st century.

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Editorial Rating

8

Qualities

  • Innovative
  • Eye Opening
  • Overview

Recommendation

Professor Jerry Davis adeptly analyzes how capital markets, corporations and employment are intertwined substructures in the US economy and how their interrelationships have changed over time. Post–World War II corporations made capital investment a servant of company growth and stability, producing high-wage occupations. In the 1980s, shareholder value began ruling corporate decision making: Long-term employment eroded as firms moved to outsourcing and then to “labor on demand.” Thus, jobs and corporate missions are at odds today. getAbstract recommends this illuminating exposition to policy makers, business leaders and everyone who has or wants a job.

Summary

In the decades after World War II, the corporate business model brought about the American economic success story: Public corporations created large-scale, high-wage career employment. Firms needed employees to conduct operations, serve customers and contribute to the long-run viability of a business. Companies attracted workers by providing job security and financial, health and retirement benefits. The alignment of interests between corporate America and its employees provided a steady and dependable environment in which all parties could ride an upward economic ...

About the Author

Jerry Davis is a professor of management and sociology at the University of Michigan.

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