Here is a New York Times article by Farah Stockman that focuses on the story of a steelworker Shannon Mulcahy who had to go through the unenviable task of training her replacements when her job was outsourced to Mexico. It is good to see that journalism is alive and well. Stories that focus on one person are illustrative in the same way as business school case studies that focus on a firm. Shannon especially represents the admirable traits of every-day Americans: charity and decency.
Outsourcing decisions are terribly fraught with real human costs, especially when there are few other economic opportunities for those whose jobs are outsourced, with no political solution on the horizon. I wanted to mention a few points that struck me, not covered in the discussions/comments on NYT.
- Work provides meaning and dignity in peoples’ lives. However, it appears that manufacturing jobs particularly provide more meaning than service jobs in which wages are lower.
- Health care costs cast a significant burden on workers like Shannon (and, also on firms which leads to increased outsourcing). She is able to care for her family because I suppose that she has an employer covered healthcare, which her family members lack. On the other hand, if one is bound to employers due to health care coverage, it reduces mobility for workers by reducing the opportunities to re-train or diversify skills.
- I was struck by the breakdown in family structure (for e.g., the events of spousal violence in the story) which makes it harder for parents to provide educational support and attention that would help their children escape the cycle of misery in dwindling local economies. In light of all these structural difficulties, it is amazing to see students like Nicole shine and succeed in their efforts. Education is a clear signaling tool that opens up more mobility.