Found 32 article(s) for author 'Lawrence Katz'

The Role of Unemployment in the Rise in Alternative Work Arrangements

The Role of Unemployment in the Rise in Alternative Work Arrangements. Lawrence Katz, 2017, Paper, “Much evidence indicates that the traditional nine-to-five employee-employer relationship is in decline. Although comprehensive, high-frequency data on US work arrangements are not available, the trend appears to have begun before the advent of the platform economy and the spread of online gig work.” Link

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The Fall of the Labor Share and the Rise of Superstar Firms

The Fall of the Labor Share and the Rise of Superstar Firms. Lawrence Katz, May 2017, Opinion, “The fall of labor’s share of GDP in the United States and many other countries in recent decades is well documented but its causes remain uncertain. Existing empirical assessments of trends in labor’s share typically have relied on industry or macro data, obscuring heterogeneity among firms. In this paper, we analyze micro panel data from the U.S. Economic Census since 1982 and international sources and document empirical patterns to assess a new interpretation of the fall in the labor share based on the rise of “superstar firms.” If globalization or technological changes advantage the most productive firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar firms with high profits and a low share of labor in firm value-added and sales. As the importance of superstar firms increases, the aggregate labor share will tend to fall.Link

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Concentrating on the Fall of the Labor Share

Concentrating on the Fall of the Labor Share. Lawrence Katz, April 2017, Paper, “In this paper, we discuss an explanation for the fall in share of labour in GDP based on the rise of “superstar firms.” If globalization or technological changes advantage the most productive firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar firms with high profit margins and a low share of labor in firm value-added and sales. As the importance of superstar firms increases, the aggregate labour share will fall. This hypothesis suggests that sales will increasingly concentrate in a small number of firms and that industries where concentration rises most will have the largest declines in the labour share. We find support for these predictions aggregating up micro-data from the US Census 1982-2012.Link

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Concentrating on the Fall of the Labor Share

Concentrating on the Fall of the Labor Share. Lawrence Katz, January 2017, Paper, “The recent fall of labor’s share of GDP in numerous countries is well-documented, but its causes are poorly understood. We sketch a “superstar firm” model where industries are increasingly characterized by “winner take most” competition, leading a small number of highly profitable (and low labor share) firms to command growing market share. Building on Autor et al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among firms within industries has risen across much of the private sector; and industries with larger increases in concentration exhibit a larger decline in labor’s share.Link

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FORGIVE AND FORGET: BANKRUPTCY REFORM IN THE CONTEXT OF FOR-PROFIT COLLEGES

Forgive and Forget: Bankruptcy Reform in the Contest of For-Profit Colleges. David Deming, Claudia Goldin, Lawrence Katz, May 2015, Book Chapter. “Rosalyn Harris was a single mother determined to make life better for herself and her son. Unemployed and without a college degree, Harris believed enrolling in the two-year criminal justice program at the for-profit Everest College was the right step toward the opportunities that higher education would provide. Unfortunately for Harris, that was not the case. Despite Everest’s claims of a 75% job placement rate for students in the criminal justice program, she spent months unsuccessfully applying…” Link

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Reducing inequality: Neighborhood and school interventions

Reducing inequality: Neighborhood and school interventions. Lawrence Katz, 2015, Paper. “Fifty years after the Civil Rights Act and the declaration of the War on Poverty, much has changed for the better in the United States, but substantial racial inequality persists. Large gaps remain between African Americans and whites in earnings, employment, family income, health, life expectancy, incarceration, teen pregnancy, educational attainment, and academic achievement. Substantial gaps also remain between Hispanics and whites in economic and educational outcomes. Differences in socioeconomic status are increasingly linked to differences in neighborhoods and schools…” Link

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Addressing long-term unemployment in the aftermath of the Great Recession

Addressing long-term unemployment in the aftermath of the Great Recession. Lawrence Katz, December 3, 2014, Paper. “In the aftermath of the Great Recession, there remains a large number of long-term unemployed across countries. This column argues that policies targeting the long-term unemployed, if effective, may have substantial benefits for the aggregate labour markets. However, evidence of the effectiveness of active labour market policies varies across policies and populations…” Link

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The Value of Postsecondary Credentials in the Labor Market: An Experimental Study

The Value of Postsecondary Credentials in the Labor Market: An Experimental Study. Claudia Golden, Lawrence Katz, September 2014. Paper. “We study employers’ perceptions of postsecondary degrees using a field experiment. We randomly assign the sector and selectivity of institution to fictitious resumes and send them to real vacancy postings on a large online job board. According to our results, a bachelor’s degree in business from a for-profit “online” institution is 22 percent less likely to receive a callback than a similar degree from a non-selective public institution…” Link

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Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Non-Participation

Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Non-Participation. Lawrence Katz, June 2014, Paper. “We explore the extent to which composition, duration dependence, and labor force non-participation can account for the sharp increase in the incidence of long-term unemployment (LTU) during the Great Recession. We …first show that compositional shifts in demographics, occupation, industry, region, and the reason for unemployment jointly account for very little of the observed increase in LTU…” Link

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