Working on, off, and around the Books

The fifth chapter looks at informal, or “off-the-books,” employment and how integral it is in low-income communities, particularly for those who cannot afford vital services or do not earn enough through their primary occupation. Traditionally, this type of “street hustling” has been viewed as on the peripheries of urban economic activity. The chapter includes an analysis of informal work alongside other forms of low-wage labor precisely because when looked at it analytically, this type of wage labor is not marginal, but is in fact integral to the economy of the urban and working poor.

The Low-Income Trap

The eighth chapter looks at the challenges that the inner city and working poor have in terms of economic mobility based on a lack of economic or financial resources. This is especially true for the servant class economy, as not only are the structures of opportunity limited, but also the barriers to movement are increasingly severe, making the relative probability of escaping the bottom of the urban-class strata far less likely.

Asset Poverty and the High Cost of Fringe Banking

The seventh chapter looks more closely at the challenges and costs of the lack of financial institutions within an inner city, and what the implications are for asset accumulation and economic stability. Despite a plethora of large banking establishments in the downtown area and a good concentration of retail banks, poorer adjacent neighborhoods in central San Diego have a dearth of retail banking. Financial services are available, but they are what are sometimes called “fringe banking.” These businesses typically have higher costs than conventional retail banks, but are often the only means that the urban and working poor can access financial services. Since obtaining critically important assets are critical for the urban poor, having a well-functioning financial services system to aid in this is crucial. Unfortunately, this is not the case.

Introduction

The author begins The Servant Class City with an introduction to one of their friends, the entrepreneur Raymond, and the odd jobs he does to earn a living. To some observers, Raymond’s situation and outlook is frustrating; he is obviously a hard worker, so why doesn’t he just learn a trade or start his own business? The barriers to either, however, are multiple. It is not from the lack of trying; but rather, the structures of opportunity have shifted, making it difficult to attain any level of economic security or move up economically through greater income. The book specifically examines the unique economic structures of the city of San Diego, California.

Do-It-Yourself Safety Nets

The sixth chapter examines the ways that people provide for themselves within low-income communities in the absence of market-based or public sector solutions for everything from childcare to banking. Recalling previous chapters, the hospitality and retail industries are, on average, inadequate in terms of job quality. A lack of skills upgrading or experience, stagnant or falling wages, and limited career ladders make these industries less than appealing to many inner-city residents. As some move to the further margins of the economy, working informally to supplement their low wages or to drop out of the labor force entirely, they run into additional problems, like a lack of benefits and labor market attachment. This often makes it harder to return to a formal employment.

Working in the Hospitality Industry

The third chapter is the first of the book’s study into different industries that specifically looks at job quality, including wages, benefits, and working conditions. It looks specifically at the ‘hospitality industry’, such as restaurants and hotels, which provide thousands of entry-level positions for the labour force of San Diego. Overall, it is characterized as a low-wage industry that is labour intensive and employs large numbers of low-income workers, immigrants, and people of color.

A Good Job Is Hard to Find

The second chapter looks at the transformed labor market of the inner city, documenting the large expansion of low-wage, service class occupations, and the challenges inner city residents have finding a good job. There are many individuals with different skills and experiences that can or cannot move up the job ladder that each of their occupation offer. In short, the quality of one’s job matters; it can have a very strong effect on one’s occupational mobility over time, and ultimately one’s economic opportunities in the long run.

Conclusion

The concluding chapter of The Servant Class City provides a review of the key issues and makes policy suggestions. The lack of economic mobility in the United States is a growing problem across socioeconomic and racial/ethnic demographics. The central research question regarding economic mobility is why so many people in low-income families have a difficult time moving out of the bottom rungs. The chapter also criticizes the current status of urban policy.

Working Retail in the Inner City

The fourth chapter looks more closely at employment in the retail sector, noting the poor job quality and challenges to workers in the industry. It first looks at the general trends in the industry that ultimately have an influence on employment practices and job quality. In the second section it discusses the promotion of retail in the inner city by developers and planning bodies, and in the final section it looks closely at job quality, career ladders, and case studies of issues related to working in retail.

Subsidizing Capital and Expanding Low-Wage Work

The first chapter looks at the background of San Diego’s inner city revitalization, the targeting and subsidization of specific industries, and the politics involved in the process. Since the 1970s, growing inequality, declining economic mobility, and an erosion of standardized work and wages for most Americans has reshaped the postwar U.S. economy. The dominant shift throughout the 1980s and 1990s saw more neoliberal economic policies adopted at the federal level and below. These coincided or overlapped with urban devolution, reduced federal funding for urban renewal programs, a shift toward more conservative-favored efforts like enterprise zones, and the elimination of welfare as a system of income supports. All of these changes resulted in growing income inequality and greater economic and labor market polarization overall, and they left many inner-city residents isolated and with high rates of joblessness.