A myth-busting book challenges the idea that we’re paid according to objective criteria and places power and social conflict at the heart of economic analysis. Your pay depends on your productivity and occupation. If you earn roughly the same as others in your job, with the precise level determined by your performance, then you’re paid market value. And who can question something as objective and impersonal as the market? That, at least, is how many of us tend to think. But according to Jake Rosenfeld, we need to think again. Job performance and occupational characteristics do play a role in determining pay, but judgments of productivity and value are also highly subjective. What makes a lawyer more valuable than a teacher? How do you measure the output of a police officer, a professor, or a reporter? Why, in the past few decades, did CEOs suddenly become hundreds of times more valuable than their employees? The answers lie not in objective criteria but in battles over interests and ideals. In this contest four dynamics are paramount: power, inertia, mimicry, and demands for equity. Power struggles legitimize pay for particular jobs, and organizational inertia makes that pay seem natural. Mimicry encourages employers to do what peers are doing. And workers are on the lookout for practices that seem unfair. Rosenfeld shows us how these dynamics play out in real-world settings, drawing on cutting-edge economics, original survey data, and a journalistic eye for compelling stories and revealing details. At a time when unions and bargaining power are declining and inequality is rising, You’re Paid What You’re Worth is a crucial resource for understanding that most basic of social questions: Who gets what and why?

From workers' wages to presidential elections, labor unions once exerted tremendous clout in American life. In the immediate post-World War II era, one in three workers belonged to a union. The fraction now is close to one in ten, and just one in twenty in the private sector--the lowest in a century. The only thing big about Big Labor today is the scope of its problems. While many studies have attempted to explain the causes of this decline, What Unions No Longer Do lays bare the broad repercussions of labor's collapse for the American economy and polity. Organized labor was not just a minor player during the "golden age" of welfare capitalism in the middle decades of the twentieth century, Jake Rosenfeld asserts. Rather, for generations it was the core institution fighting for economic and political equality in the United States. Unions leveraged their bargaining power to deliver tangible benefits to workers while shaping cultural understandings of fairness in the workplace. The labor movement helped sustain an unprecedented period of prosperity among America's expanding, increasingly multiethnic middle class. What Unions No Longer Do shows in detail the consequences of labor's decline: curtailed advocacy for better working conditions, weakened support for immigrants' economic assimilation, and ineffectiveness in addressing wage stagnation among African Americans. In short, unions are no longer instrumental in combating inequality in our economy and our politics, and the result is a sharp decline in the prospects of American workers and their families.