Question

How to reduce the big gap of divergence between high and low skill workers?

In The New Geography of Jobs written by Moretti, he claimed that globalization and automation trends have exacerbated the differences between highly skilled and low-skilled workers, therefore creating a series of problems that might result in potential damage to the labor market. For low-skilled workers, some of them have to leave their job because human capital values more for companies right now. Those steps that traditionally require manual repetition can be replaced by automated production lines, saving money and increasing efficiency. However, High-skilled workers who created these automatic machines might, in other words, put low-skilled workers out of work. As a result, the conflict between high-skilled workers and low-skilled workers is deepening.

Answer 1

Ans- When computers made their way into workplaces, in the 1980s, typists had a problem. As computers replaced traditional typewriters, the skills of typists who did not know how to work with a word processor grew obsolete. Nevertheless, few would argue that information technology permanently increased unemployment. Although the unemployment rate did spike in the 1980s, it eventually went back down again, so the average unemployment rate in the 1990s was similar to the rate in the 1970s. The labor force adjusted to a new technology replacing an older one. This is just an example why due to globalisation there is Increase in unemployment.

Workers who created these automatic machines might, in other words, put low-skilled workers out of work. As a result, the conflict between high-skilled workers and low-skilled workers is deepening.

To tackle this situation,the workforce can adjust to changes in the demand for skills by acquiring new skills, through training, or by replacing older workers with younger ones who have up-to-date skills. For example, an unemployed typist looking for work in the 1980s could learn how to use a computer or fill a vacant position left by another typist who moved on to another job or retired.

To achieve this, you’ll have to go beyond providing training in specific skills: you'll need to foster a learning culture in your company that encourages employees to train on their own and to strive to keep their skillset current.