Why Stay in School, Part 2: Responding to Globalization

In my last article "Why Stay In School, Part 1: The Impact of Globalization" I began discussing first how globalization and the technology that enables it are already in the process of eliminating "bottom rung" jobs - those relatively unskilled positions at the bottom of the labor hierarchy. They used to be called "entry level" positions, but now they're vanishing.

The frightening thing is that the technology and resources already exist today to eliminate every order taker at a fast food "drive thru" position. Now it's just a matter of reaching the "break even point" where it's widely cheaper to use order takers at Indian call centers instead of folks entering the marketplace in your home town. My theory: once using an Indian call center's cost per hour approximates the minimum wage, offshore call centers are already positioned to eliminate those entry level jobs. Indian call centers - after all - don't usually call in sick or fail to show up or require uniforms at company expense. The argument could be made that once off shore call centers can be employed for just the minimum hourly wage, the lack of "down time" for individuals not showing up or coming in late could put them widely into use. For that reason, raising the national minimum wage works against the most vulnerable workers. I hope this continues the process of shocking young people into the need to protect themselves by taking as much responsibility as they can for their personal welfare and "escape the bottom rung" of jobs.