Introduction

Labor economists and policymakers are engaged in a fundamental debate about the changing characteristics of the American work-place and workplaces in both developing and developed countries around the world. The policies that supported the old economy are becoming obsolete, and human capital must be the bedrock for economic success in the new economy. In the new economy, Ray Marshall argues, there is a significant role to be played by labor unions, as well as by education and training. Public labor market organizations exist to provide training, counseling, information, and placement services for workers, all of whose skills are highly valued. Marshall also recommends that labor laws be reformed to remove the barriers workers face in organizing and bargaining collectively as well as the legal barriers companies face in establishing labor-management committees and other forms of cooperation. Marshall also argues for national policies to create an environment that encourages companies to organize for high performance and discourages the low-wage alternative.