The Role of Labor Market Regulation in Rebuilding Economic Opportunity in the U.S.

Abstract

In the search for policy solutions to rising inequality and precariousness in the U.S., this essay argues for the central role of labor market regulation. It presents research and policy evidence for a three-pronged approach: (1) strengthening the floor of labor standards (wages, health and safety, and right to organize chief among them); (2) vigorously enforcing that floor; and (3) leveraging government contracting and grants to build a base of good jobs on top of that floor. The essay concludes that getting to scale in the current political climate will require ratcheting up from state and local policy campaigns to federal reform.

Keywords: labor market regulation; public policy; low-wage work; wage theft; government contracting; income inequality; minimum wage

JEL Classification: J31, J38, K31, K32, K42