Found 321 article(s) in category 'Q2: Jobs?'

WHERE WILL JOBS COME FROM?

The posts collected here identify the firms, industries, and geographic locations where the jobs of the future will likely emerge.  They also consider the public policies that have the best chance of fostering the types of jobs that will support a robust middle class.

The effect of automatic enrolment on debt

The effect of automatic enrolment on debt. John Beshears, David Laibson, September 17, 2019, Paper, “Automatic enrolment in defined contribution pension plans might be the most common policy application of behavioural economics. But does automatic enrolment increase pension savings at the expense of increased household debt? This column examines a natural experiment in which the US Army began automatically enrolling its civilian employees in its retirement savings plan. It finds strong evidence against the hypothesis that automatic enrolment increases financial distress and debt excluding auto loans and first mortgages.Link

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Launch a Pre-Emptive Strike Against Recession

Launch a Pre-Emptive Strike Against Recession. Jason Furman, September 5, 2019, Opinion, “President Trump was right to set aside premature plans for fiscal stimulus last month. Based on the current economic situation, stimulus isn’t yet warranted—but it may be soon. Given the uncertainty, Congress should pass a law immediately that would automatically trigger stimulus if the labor market deteriorates, with unemployment rising rapidly. The package should include not only tax cuts but also relief for states, as well as extra…Link

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Measuring Household Wealth in the Panel Study of Income Dynamics: The Role of Retirement Assets

Measuring Household Wealth in the Panel Study of Income Dynamics: The Role of Retirement Assets. Karen Dynan, August 2019, Paper, “While the Panel Study of Income Dynamics (PSID) has much to offer researchers studying household behavior, one limitation is that its summary measure of wealth is not as broad as those of other commonly used surveys, such as the Survey of Consumer Finances (SCF), because it does not include the value of defined-contribution (DC) pensions. This paper describes the pension data available in the PSID and shows how they can be used to create a more comprehensive picture of household finances. We then compare various measures derived from these data with their counterparts from the SCF. Along a number of dimensions, the PSID data line up fairly well. Notably, an augmented summary measure of PSID wealth that includes the value of DC pensions is considerably closer to the SCF summary measure than to the standard measure for the median household. We conclude by presenting several examples of research areas where using a broader measure of wealth might be important.Link

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Can Capitalism Be Made Better By Corporate Social Responsibility?

Can Capitalism Be Made Better By Corporate Social Responsibility? Nancy Koehn, August 23, 2019, Audio, “This week, nearly 200 CEOs pledged to discard a foundational tenet of business: that corporations exist only to serve their shareholders.  Chief executives from the Business Roundtable — including leaders of Apple, JP Morgan Chase, and Amazon, argued this week that the purpose of a corporation is to promote “an economy that serves all Americans.” Nancy Koehn, historian at Harvard Business School, said this declaration is a direct response to the public’s growing voice in holding corporations accountable.Link

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A Unified Welfare Analysis of Government Policies

A Unified Welfare Analysis of Government Policies. Nathaniel Hendren, August 2018, Paper, “We conduct a comparative welfare analysis of 133 historical policy changes over the past half-century in the United States, focusing on policies in social insurance, education and job training, taxes and cash transfers, and in-kind transfers. For each policy, we use existing causal estimates to calculate both the benefit that each policy provides its recipients (measured as their willingness to pay) and the policy’s net cost, inclusive of long-term impacts on the government’s budget. We divide the willingness to pay by the net cost to the government to form each policy’s Marginal Value of Public Funds, or its “MVPF”. Comparing MVPFs across policies provides a unified method of assessing their impact on social welfare. Our results suggest that direct investments in low-income children’s health and education have historically had the highest MVPFs, on average exceeding 5. Many such policies have paid for themselves as governments recouped the cost of their initial expenditures through additional taxes collected and reduced transfers.Link

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Pol Antràs on Trade, Taxation, Solutions for Income Inequality, and the Future of Globalization

Pol Antràs on Trade, Taxation, Solutions for Income Inequality, and the Future of Globalization August 2019. GrowthPolicy’s Devjani Roy interviewed Pol Antràs, Robert G. Ory Professor of Economics at Harvard University, on trade, taxation, solutions for income inequality, and the future of globalization. | Click here for more interviews like this one. Links: Pol Antràs’s faculty page […]

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Corporate Purpose and Firm Ownership

Corporate Purpose and Firm Ownership. George Serafeim, August 2019, Paper, “Analyzing data from approximately two million employees in a sample of more than 1,000 established public and private US companies, we find that corporate purpose is lower among employees of public companies. This result is driven by weaker beliefs held by employees in the salaried middle ranks and hourly workers, and not by senior executives. Among public companies, purpose is progressively lower in companies with more concentrated shareholders, suggesting that shareholder power is associated with a lower sense of purpose among employees. A substantial portion of these patterns can be explained by differences in CEO backgrounds and CEO-employee pay gap. Public firms, particularly those with strong shareholders, choose outsider CEOs at a higher rate and pay them more relative to their employees. Altogether, this study finds that the strength of corporate purpose varies substantially across companies, and is related to the identity of the firm owners, and the choices they make.Link

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Are New Graduates Happier Making More Money or Having More Time?

Are New Graduates Happier Making More Money or Having More Time? Ashley Whillans, July 25, 2019, Paper, “Each year across North America, millions of graduates have to make tradeoffs between time and money as they plan their next steps. Despite the importance of these choices, we know surprisingly little about how people navigate major life decisions that involve making more money at the expense of having less time, and vice versa. Researchers asked more than 1,000 graduating college students in Canada whether they generally prioritized time or money. They found that students who prioritized time at graduation were happier and more satisfied with their careers 1 to 2 years later than those who prioritized money. They explored why that might be and how factors like financial security and student debt play a role in people’s decision-making and happiness.Link

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