Monday, 7 September 2015

Leave corruption behind



Inspired by a conversation, and conveniently linked to this news story about how Americans don't take their annual leave:

          Although it’s clear that the USA does have more of a problem than the UK, we all need a clear re-think about our working practices. Americans might not be taking their annual leave, but we’re all expected to work long hours.
          Let’s take a moment to assess how this expectation might gradually develop. Obviously some unpleasant managers will want to work their underlings hard no matter what other social norms prevail, but this will only contribute to the process.
          To start with, an ambitious person might think that an extra half an hour until 5.30 will help get something done on time, or help him stand out from the crowd and get promoted. As more people do it, it becomes the people who merely fulfil their contracts who stand out, and extra work is a necessity. Job descriptions gradually change to include more work as expectations change and more ‘productivity’ becomes normal. Why would a company promote someone who was less productive? Why would it keep someone on who performed less well?
          This vicious circle of competitive people working harder and harder to stand out is a race to the bottom. Every bit of free time a person puts into work contributes to making that extra work less impressive overall. This is a standard economic problem that has been addressed in game theory; it benefits me most to put in extra time when no-one else does, and each increment of extra time is of negligible value compared to the promotion I want, or keeping my job. The same applies to everyone else, so everyone puts in the time, and then no-one gets the benefit.
          In our standard economic models, someone else working extra time wouldn’t matter. Jobs are created for the skills people have, and if I am good at my job then I will find a promotion no matter how much time I put in. Theoretically, I shouldn’t care if someone else is working harder; that person has made a different set of choices and is reaping the costs and benefits. But there isn’t really an infinite supply of jobs at every level; there is a limited supply. And, as our experience of training vastly more university graduates has shown, we don’t get more skilled jobs for a more skilled workforce; we get underemployment, with skilled workers in low-skill jobs. I am competing with others for promotion, and that means that I won’t get it if some of them work long enough to be more productive.
          Fundamentally, jobs and employment is a social ranking system. We long ago moved away from working to survive; a person can survive in this country without working at all, courtesy of our social welfare system. Not only is there a limited supply of any promotion, but at the top end of the scale jobs most certainly are limited. We only have 650 (currently)  MPs and that number will not increase even if many people want the job. There are only a few corporate CEOs. Even if I could get a promotion in the middle of the jobs market without working extra hours, these jobs of clearly limited supply will only take people who get the most work done. And they’re not just limited to people right at the top; making partner at a firm of accountants or lawyers, or publishing enough papers as an academic to be a lecturer now almost requires long hours.
          Far from making my own life decisions, unaffected by everyone else’s, I now need to work harder just to stay still, and my chances of getting a very top job are much lower, because other people’s choices have a bad effect on me. This situation, where others’ choices cause diffuse harm, is exactly what regulation is for. We regulate pollution because pollution is a bad thing that everyone suffers, but the benefit is something very specific to the polluter, who overall would benefit from polluting if he weren’t stopped.
          This system has a number of nasty side effects (negative externalities) beyond the immediate loss of free time or job opportunity. This is because the ability to devote time to a job isn’t evenly spread across the population. Some of us are single people who have to do all our own housework; some people have not only social lives that are leisure, but social duties that they are also compelled to fulfil. For example, some people need to care for children or elderly parents. Other people have supportive partners or parents who do all the work for them; youngsters in London might live with their parents, able to accept less pay but also work harder, with food and cleaning done for them.
          Because we allow a race to the bottom getting and keeping a good job is becoming not just about the decision to value it more highly than others, but about the ability to spend that time. Some people have demands on their time that others do not, and don’t yet have the money to pay to avoid it (for example by hiring a nanny). A system that allows free time to stand in as a proxy for ability allows the rich or those with social support to secure an unfair proportion of the better jobs, and thereby stay rich.
          The old social model of working men supported by helpful wives who do all the housework hasn’t entirely died, but nowadays there is a lot more variation in social structure. This is supposedly a good thing, but people doing things differently are silently penalized for their choice if it takes 1.5 people to make 1 great career.
          I have seen numerous feminist articles promoting the aspiration that women can ‘have it all’; that they can be properly involved with their children and have a great career. I don’t want to say categorically that you can’t succeed in a career if you spend a decent amount of evenings with your children, but I will say that it’s much less likely. It is the change in probability that matters for society as much as an absolute barrier.
          I think that the feminist articles that feed this aspiration are wrong. Yes, women in partnerships could have more than they currently do if men would do their fair share of housework. But to stand the best chance of a stellar career in today’s society requires an investment of time that directly conflicts with having the rest of ‘it all’. By focussing simply on negotiating a fair relationship feminists are missing a wider societal issue that currently affects more women than men, and are instead focussing only on where specifically women suffer.
          If women can convince men to be more fair in relationships they still won’t solve the problem, but since it’ll take a while for all men to be reasonable, feminists will be able to pursue this red herring for ages. But if we were to prevent people from overworking we would not only solve the problems affecting women with many commitments outside work, but also help men who have commitments outside of work. I disagree with encouraging women to work more hours by finding partners who will support them; I think that we should be tackling the problem that great careers need that support.
          As a brief aside, it’s nice to have a society which recognises people’s social connections, and I’m not suggesting that we ban such connections, even though I am promoting an ideal of individualism in which one person alone can achieve things. In fact, if we insist that a person is only allowed to do so much, we force people to have time for social connections. Social connections are unevenly distributed, and if we want those with the most merit to succeed, we need to ensure that social connections don’t interfere. I will admit I don’t like the nuclear family model of society, but this isn’t an attack on traditional values, as I am about to suggest.

          I’ve laid out what I think is a convincing argument so far, and included within it are some hints that money and time are interchangeable. Rich people can hire nannies to do childcare; almost everyone works in order to get money. Everyone knows that ‘time is money’. If you’re not convinced yet that we need to regulate working hours, let me describe things another way. Is it right for me to pay my manager to give me good reports and a glowing reference? Would you be upset if I paid a recruiter to give me a job you’d applied for?
          Those things are probably illegal. Yet what is working extra time except giving a free gift to a company in exchange for advancement? It is corruption, just as if it were a cash donation.
          An economist might complain that it’s simply negotiation; the effect is someone offering more for the money. But the point of corruption is that it’s hidden. I am sure that bribes to get your paperwork done first compete with each other, and the person offering a lower bribe doesn’t get his done fastest.
          You might say that you give your time to the company, but a bribe to a person. But your time goes towards your manager’s goals and objectives, and a bribe helps a person accept a lower salary, saving the company money. The difference isn’t that clear-cut here either.
          The effect of bribery is to allow the rich to gain an unfair advantage. We have banned that, but we still allow the time-rich to gain the same advantage. There’s a correlation between the rich and the time-rich, just as there’s a correlation between the time-poor and women, but these proxy categories don’t fully describe what’s happening.
          I understand that people want to help their family, and want to work hard to do the best for those they love. I’m not against that; I’m against people working harder and harder for the same wage afraid of losing out. I want to improve people’s social lives, not cut them out of life. But to improve people’s social lives, we need to cut their link to people’s work. Work can and should be individualistic, but life is so much more than work, just as a rich life is much more than individualism.
          I’ve argued elsewhere that we need to stop competing for social status through wealth, and I think that our current system of overworking people is genuinely corrupt. The EU Working Time Directive is an important step in redirecting people to spend their leisure time, rather than money, and we shouldn’t allow people to opt out, just as we don’t allow people to opt out of anti-bribery legislation. The next step is to go for 3 months off a year!

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