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Labour-market reforms would increase demand for less-skilled workers, particularly in service industries such as health care.
ECONOMIST: Unbalanced skill levels could make the world more unequal
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Traditionally, productivity growth has slowed as expansions have matured, with firms obliged to draw less-skilled workers from the depleted pool of labour.
ECONOMIST: In due course it will stop. Until then, one stands in awe
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In rich countries, competition from millions of new, low-skilled workers has acted as a drag on wages for less-skilled ones in advanced economies.
ECONOMIST: Unbalanced skill levels could make the world more unequal
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But trade-union rules make it difficult to hire and fire workers, lower-paid jobs for the less skilled are hard to come by, and a combination of high taxes on low incomes and generous welfare payments reduces the incentive to seek work at all.
ECONOMIST: Is a large flow of migrants a good or a bad thing?
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And a Home Office analysis of a sample of migrants eligible for settlement in 2011 shows that under current rules those in less-skilled and worse-paid jobs (nurses, care workers, cooks) were more likely to settle at the first opportunity than those in better-paid or graduate-level jobs.
ECONOMIST: Farewell, big society; hello, guest workers on sufferance
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First, the premium for skilled workers has been falling: a surge in secondary education has increased the supply of literate, reasonably well-schooled workers, and years of steady growth have raised relative demand for the less skilled in the formal workforce, whether as construction workers or cleaners.
ECONOMIST: An unequal continent is becoming less so