Study Reveals Increased Socio-Economic Segregation in the Workplace

Title: Study Reveals Increasing Socioeconomic Segregation in the Workplace Over the Past 30 Years

Subtitle: Deindustrialization and Restructuring Identified as Key Factors

Date: June 21, 2023

A recent study presented at Sciences Po has shed light on the growing issue of socioeconomic segregation in the workplace. The study, conducted in France and 11 other advanced economies, highlights a concerning trend of an “increasingly concentrated wage elite separated from employees in the lower half of the wage hierarchy.” This phenomenon has been attributed to the effects of deindustrialization and restructuring over the past three decades.

The study, which will be presented during a symposium titled “What do we know about work?” in Paris, raises concerns about the potential consequences on social cohesion. It reveals that the level of socioeconomic segregation has significantly increased over the past 30 years, posing challenges to equality and inclusivity in the workplace.

According to Olivier Godechot, the director researcher at the CNRS and coordinator of the study, the findings indicate a significant shift in the composition of workplaces. In 1993, members of the top 10% of earners in France worked in establishments where 27% of their colleagues belonged to the same salary group. However, by 2019, this rate had risen to 36.5%. Conversely, in 1993, the top 10% of earners included 26% of employees from the national lower half, but this rate decreased to 16.5% in 2019.

The study emphasizes that this trend is not limited to France but is observed in all the countries studied. It underscores the need for further examination of the consequences of socioeconomic segregation on social cohesion and the overall well-being of societies.

The increasing concentration of wealth and income among a select group of employees raises questions about fairness, equal opportunities, and social mobility. It calls for a comprehensive approach to address the underlying causes of this segregation, such as deindustrialization and restructuring, which have contributed to the widening gap between different socioeconomic classes.

As societies strive for greater inclusivity and equality, it is crucial to recognize and address the challenges posed by socioeconomic segregation in the workplace. By fostering a more equitable and inclusive work environment, societies can work towards reducing disparities and promoting social cohesion.

Read more at 20 minutes: [Link to the article](https://www.20minutes.fr/societe/4042182-20230620-segregation-socio-economique-travail-accentue-depuis-30-ans?xtor=RSS-176)

deindustrialisation definition

On July 5th, reveals that the process of deindustrialization and restructuring has contributed significantly to the socioeconomic segregation observed in the workplace. The researchers collected and analyzed data from various sources, including labor market surveys and wage data, to provide a comprehensive understanding of the issue.

One of the key findings of the study is the emergence of a concentrated wage elite that is increasingly detached from employees in the lower half of the wage hierarchy. This means that a small group of highly skilled, highly paid individuals are occupying top positions in organizations, while a majority of workers face lower wages and limited opportunities for upward mobility.

Deindustrialization, which refers to the decline of manufacturing industries, has played a significant role in this process. As industries have shifted towards automation and technology-driven processes, the demand for low-skilled labor has decreased while the demand for highly skilled labor has increased. This has resulted in a polarization of the workforce, with a growing wage gap between those with advanced skills and those without.

Restructuring, on the other hand, refers to the changes in organizational structure and employment practices that have occurred over the past three decades. Many companies have adopted cost-cutting measures, such as outsourcing, downsizing, and subcontracting, to remain competitive in a globalized economy. These measures have disproportionately affected lower-skilled workers, leading to job insecurity, reduced benefits, and limited income growth.

The study also identifies several consequences of increasing socioeconomic segregation in the workplace. First, it perpetuates income inequality, as the wage elite continues to accumulate wealth while lower-wage workers struggle to make ends meet. Second, it undermines social cohesion, as workers feel a sense of alienation and marginalization within the workplace. Finally, it hampers upward mobility and opportunities for social advancement, as individuals from disadvantaged backgrounds face greater barriers to accessing high-paying jobs.

The researchers emphasize the need for policy interventions to address these challenges. They suggest that governments should implement measures to promote inclusive growth, such as investing in education and skills development for all segments of the population. Additionally, they recommend the implementation of policies that support job creation in sectors that require different skill levels, as well as measures to strengthen workers’ rights and protections.

In conclusion, the study reveals the concerning trend of increasing socioeconomic segregation in the workplace over the past 30 years. Deindustrialization and restructuring have been identified as key factors contributing to this phenomenon. The study highlights the need for policy interventions to promote inclusive growth and address the resulting income inequality and social cohesion challenges.