Found 466 article(s) in category 'Q3: Inequality?'

Jeffrey Frankel on Taxes, Trade, Tariffs, and the Possibility of the Next Recession

Jeffrey Frankel on Taxes, Trade, Tariffs, and the Possibility of the Next Recession June 2019. GrowthPolicy’s Devjani Roy interviewed Jeffrey Frankel, James W. Harpel Professor of Capital Formation and Growth at Harvard Kennedy School, on the current tax policy, international trade, tariffs, and the possibility of the next recession. | Click here for more interviews […]

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Do Some Countries Discriminate More than Others? Evidence from 97 Field Experiments of Racial Discrimination in Hiring

Do Some Countries Discriminate More than Others? Evidence from 97 Field Experiments of Racial Discrimination in Hiring. Devah Pager, June 17, 2019, Paper, “Comparing levels of discrimination across countries can provide a window into large-scale social and political factors often described as the root of discrimination. Because of difficulties in measurement, however, little is established about variation in hiring discrimination across countries. We address this gap through a formal meta-analysis of 97 field experiments of discrimination incorporating more than 200,000 job applications in nine countries in Europe and North America. We find significant discrimination against nonwhite natives in all countries in our analysis; discrimination against white immigrants is present but low. However, discrimination rates vary strongly by country: In high-discrimination countries, white natives receive nearly twice the callbacks of nonwhites; in low-discrimination countries, white natives receive about 25 percent more. France has the highest discrimination rates, followed by Sweden. We find smaller differences among Great Britain, Canada, Belgium, the Netherlands, Norway, the United States, and Germany. These findings challenge several conventional macro-level theories of discrimination.Link

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The Macroeconomic Implications of Housing Supply Restrictions

The Macroeconomic Implications of Housing Supply Restrictions. Edward Glaeser, June 15, 2019, Paper, “Housing supply restrictions, including historic preservation policies, minimum lot sizes and height limitations, are typically approached with static Pigouvian tools, but these policies also have dynamic implications. Restricted supply will typically make quantities, which determine construction employment, less volatile, and prices, which determine financial stability, more volatile. A prominent exception occurs when supply-unconstrained areas build so much during a boom that construction halts during the bust, and in that case, elastic supply can be associated with both price volatility and a limited ability to use credit instruments to boost employment during a bust. As institutions with counter-cyclical missions grapple with housing policies, they must recognize that housing regulation interacts with monetary policy, and that reforming housing policy may have implications for the business cycle.Link

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Migrant Inventors and the Technological Advantage of Nations

Migrant Inventors and the Technological Advantage of Nations. Prithwiraj Choudhury, 2019, Paper, “We investigate the relationship between the presence of migrant inventors and the dynamics of innovation in the migrants’ receiving countries. We find that countries are 25 to 50 percent more likely to gain advantage in patenting in certain technologies given a twofold increase in the number of foreign inventors from other nations that specialize in those same technologies. For the average country in our sample this number corresponds to only 25 inventors and a standard deviation of 135. We deal with endogeneity concerns by using historical migration networks to instrument for stocks of migrant inventors. Our results generalize the evidence of previous studies that show how migrant inventors “import” knowledge from their home countries which translate into higher patenting. We complement our results with micro-evidence showing that migrant inventors are more prevalent in the first bulk of patents of a country in a given technology, as compared to patents filed at later stages. We interpret these results as tangible evidence of migrants facilitating the technology-specific diffusion of knowledge across nations.Link

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Benjamin Friedman on the Future of Productivity Growth in America, the True Meaning of Sustainable Economic Growth, and Keynes’s “Grandchildren”

Benjamin Friedman on the Future of Productivity Growth in America, the True Meaning of Sustainable Economic Growth, and Keynes’s “Grandchildren” June 2019. GrowthPolicy’s Devjani Roy interviewed Benjamin Friedman, William Joseph Maier Professor of Political Economy at Harvard University, on the future of productivity growth in America, the true meaning of sustainable economic growth, and J. […]

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What Exactly Is Affordable Housing?

What Exactly Is Affordable Housing? Chris Herbert, June 3, 2019, Audio, “Affordable housing: While just two words, the concept isn’t really as simple as it might sound. Despite the complexity of the issue, we so often hear the term “affordable housing” thrown around by everyone from politicians to activists to the press, as if it were a single, monolithic thing. But there are different types of affordable housing, said Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies, leftover from years of housing policies.Link

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Racial wealth inequality: Social problems and solutions

Racial wealth inequality: Social problems and solutions. Alexandra Killewald, June 3, 2019, Video, “White college graduates have over seven times more wealth than black college graduates and nearly four times more wealth than Latino college graduates. White single parents have roughly two times more wealth than two-parent black and Latino households. Rather than education, family structure, or conspicuous consumption, scholars point to historic policies (e.g., Homestead Act, GI Bill, Social Security) that have excluded minorities from having similar wealth-building opportunities as white individuals. Furthermore, empirical evidence suggests that discrimination and structural racism are among contemporary drivers that prevent minority communities from obtaining equitable housing loans, adequate neighborhood resources (such as grocery stores and healthcare services), and access to jobs and education. A series of policy solutions including student loan forgiveness, universal basic income, federal job guarantee, baby bonds, and reparations have been presented as potential solutions.Link


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Consumption Taxes, Redistribution and Informality

Consumption Taxes, Redistribution and Informality. Anders Jensen, 2019, Paper, “We study how the presence of large informal sectors in developing countries impacts the distributional properties of consumption taxes. We assemble a dataset of household expenditure using micro-data from 20 countries at different levels of economic development. Using the place of purchase to proxy for informal consumption, we show a large negative relation between informal consumption shares and households’ total expenditure, which is robust to product and geography controls. This implies that consumption taxes are de-facto progressive: households in the top decile pay 70% more taxes as a share of expenditure than households in the bottom decile. Finally, we build a model of optimal commodity taxation in the presence of informal consumption, which we calibrate to our data. We find that optimal tax rates are less differentiated across products with an informal sector. Tax exempting necessities, such as food, is rarely optimal as it leads to only a marginal gain in progressivity.Link

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Trickle-down innovation and the longevity of nations

Trickle-down innovation and the longevity of nations. Amitabh Chandra, June 1, 2019, Paper, “The association between income and life expectancy is so robust and persistent across countries that it has a name, the Preston Curve, named after the economist who first described it. 1 The strength of the association begs the question: must citizens of poorer countries wait for their economies to grow before they can expect to enjoy the life expectancies of wealthier nations? Or can longevity improve, even in the absence of economic gains? The answer has important implications for human wellbeing around the world.Link

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Urban management in the 21st century Ten insights from Professor Ed Glaeser

Urban management in the 21st century Ten insights from Professor Ed Glaeser. Edward Glaeser, June 2019, Paper, “In August 2018, CDE hosted Professor Ed Glaeser, the world’s leading urban economist and the Fred and Eleanor Glimp Professor of Economics in the Faculty of Arts and Sciences at Harvard University. He shared his critical insights based on vast experience during a series of seminars and engagements with leaders, policy makers and officials from the Johannesburg and Cape Town metro governments. To help improve the quality of South Africa’s discussion about cities’ vital role in growth and development, we are publishing here, in collaboration with Professor Glaeser, a summary of the key lessons that we drew from the questions he asked and the talks he gave.Link

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