The past few decades have seen a loss of traditional manufacturing jobs to the emerging markets. These jobs are lost for
the foreseeable future. New jobs that are being created tend to be relatively low paid and unskilled service-provision roles.
Christopher Pissarides identifies two ways governments can help make these jobs more palatable -- raising the minimum tax allowances, i.e. raising the level of income at which tax is paid, and adapting secondary education to reflect the new paradigm.