1,721,258 research outputs found
The "Task Approach" to Labor Markets" An Overview
Get PDFAn emerging literature argues that changes in the allocation of workplace “tasks” between capital and labor, and between domestic and foreign workers, has altered the structure of labor demand in industrialized countries and fostered employment polarization—that is, rising employment in the highest and lowest paid occupations. Analyzing this phenomenon within the canonical production function framework is challenging, however, because the assignment of tasks to labor and capital in the canonical model is essentially static. This essay sketches an alternative model of the assignment of skills to tasks based upon comparative advantage, reviews key conceptual and practical challenges that researchers face in bringing the “task approach” to the data, and cautions against two common pitfalls that pervade the growing task literature. conclude with a cautiously optimistic forecast for the potential of the task approach to illuminate the interactions among skill supplies, technological capabilities, and trade and offshoring opportunities, in shaping the aggregate demand for skills, the assignment of skills to tasks, and the evolution of wages
The unsustainable rise of the disability rolls in the United States: causes, consequences and policy options
No full textTwo ailments limit the effectiveness and threaten the long-term viability of the U.S. Social Security Disability Insurance program (SSDI). First, the program is ineffective in assisting the vast majority of workers with less severe disabilities to reach their employment potential or earn their own way. Second, the program’s expenditures on cash transfers and medical benefits—exceeding $1,500 per U.S. household—are extremely high and growing unsustainably. There is no compelling evidence, however, that the incidence of disabling conditions among the U.S. working age population is rising. This paper discusses the challenges facing the SSDI program, explains how its design has led to rapid and unsustainable growth, considers why past efforts to slow program growth have met with minimal and fleeting success, and outlines three recent proposals that would modify the program to slow growth while potentially improving the employment prospects of workers with disabilities. Because these proposals depart substantially from a program design that has seen little change in half a century, their efficacy is unproven.Additionally, even well-meaning efforts to place the SSDI program on a sustainable trajectory run the risk of creating additional hurdles for claimants who are truly unable to work. Nevertheless, the imminent exhaustion of the SSDI Trust Fund provides an impetus and an opportunity to explore innovative solutions to the longstanding policy challenges posed by the SSDI program. Keywords: disability; labor force participation; policy analysi
Skills, education, and the rise of earnings inequality among the "other 99 percent"
Get PDFThe singular focus of public debate on the “top 1 percent” of households overlooks the component of earnings inequality that is arguably most consequential for the “other 99 percent” of citizens: the dramatic growth in the wage premium associated with higher education and cognitive ability. This Review documents the central role of both the supply and demand for skills in shaping inequality, discusses why skill demands have persistently risen in industrialized countries, and considers the economic value of inequality alongside its potential social costs. I conclude by highlighting the constructive role for public policy in fostering skills formation and preserving economic mobility.National Science Foundation (U.S.) (Grant SES-1227334)Russell Sage Foundation (Grant 85-12-07)Alfred P. Sloan Foundation (Grant 2011-10-12
The Journal of Economic Perspectives at 100 (Issues)
No full textWhen I was a graduate student, I discovered that the Journal of Economic Perspectives embodied much of what I love about the field of economics: the clarity that pierces rhetoric to seek the core of a question; the rigor to identify the causal relationships, tradeoffs, and indeterminancies inherent in a problem; the self-assurance to apply the disciplinary toolkit to problems both sacred and profane; and the force of logic to reach conclusions that might be unexpected, controversial, or refreshingly bland. It never occurred to me in those years that one day I would edit the journal. While doing so is a privilege and a pleasure, I equally confess that it's no small weight to be the custodial parent of one of our profession's most beloved offspring. No less intimidating is the task of stipulating what this upstart youth has accomplished in its first 25 years and 100 issues in print. Like any empiricist, I recognize that the counterfactual world that would exist without the JEP is unknowable, but my strong hunch is that our profession would be worse off in that counterfactual world. In this essay, I reflect on the journal's accomplishments and articulate some of my own goals for the JEP going forward
Why Are There Still So Many Jobs? The History and Future of Workplace Automation
Get PDFIn this essay, I begin by identifying the reasons that automation has not wiped out a majority of jobs over the decades and centuries. Automation does indeed substitute for labor—as it is typically intended to do. However, automation also complements labor, raises output in ways that leads to higher demand for labor, and interacts with adjustments in labor supply. Journalists and even expert commentators tend to overstate the extent of machine substitution for human labor and ignore the strong complementarities between automation and labor that increase productivity, raise earnings, and augment demand for labor. Changes in technology do alter the types of jobs available and what those jobs pay. In the last few decades, one noticeable change has been a "polarization" of the labor market, in which wage gains went disproportionately to those at the top and at the bottom of the income and skill distribution, not to those in the middle; however, I also argue, this polarization is unlikely to continue very far into future. The final section of this paper reflects on how recent and future advances in artificial intelligence and robotics should shape our thinking about the likely trajectory of occupational change and employment growth. I argue that the interplay between machine and human comparative advantage allows computers to substitute for workers in performing routine, codifiable tasks while amplifying the comparative advantage of workers in supplying problem-solving skills, adaptability, and creativity
Journal of Economic Perspectives
Get PDFThis year marked the twenty-seventh volume of the Journal of Economic Perspectives. Throughout its history, the Journal has sought to contribute to the economics profession along multiple dimensions: introducing readers
to state-of-the-art thinking on theoretical and empirical research topics; encouraging cross-fertilization of ideas among the fields of economics; providing analyses of public policy issues; providing readings for students; offering illustrations that are useful in lectures; sparking discussion among colleagues; suggesting directions for future research; and analyzing features of the economics profession itsel
Report of the Editor: Journal of Economic Perspectives
No full textThis year marked the 25th volume of the Journal of Economic Perspectives. Indeed, since the journal started in mid-2007, the Spring 2012 issue will be the 100th issue. The journal seeks to contribute to the economics profession along multiple dimensions: introducing readers to state-of-the-art thinking on theoretical and empirical research topics; encouraging cross-fertilization of ideas among the fields of economics; providing analyses of public policy issues; providing readings for students; offering illustrations that are useful in lectures; sparking discussion among colleagues; suggesting directions for future research; and analyzing
Putting Tasks to the Test: Human Capital, Job Tasks, and Wages
Get PDFUsing original, representative survey data, we document that analytical, routine, and manual job tasks can be measured with high validity, vary substantially within and between occupations, are significantly related to workers’ characteristics, and are robustly predictive of wage differences between occupations and among workers in the same occupation. We offer a conceptual framework that makes explicit the causal links between human capital endowments, occupational assignment, job tasks, and wages, which motivate a Roy model of the allocation of workers to occupations. We offer two simple tests of the model’s gross predictions for the relationship between tasks and wages, both of which receive qualified empirical support.National Science Foundation (U.S.) (CAREER award SES-0239538
The Geography of Trade and Technology Shocks in the United States
Get PDFThis paper explores the geographic overlap of trade and technology shocks across local labor markets in the United States. Regional exposure to technological change, as measured by specialization in routine task-intensive production and clerical occupations, is largely uncorrelated with regional exposure to trade competition from China. While the impacts of technology are dispersed throughout the United States, the impacts of trade tend to be more geographically concentrated, owing in part to the spatial agglomeration of labor-intensive manufacturing. Our findings highlight the feasibility of separately identifying the impacts of recent changes in trade and technology on US regional economies.Spain. Ministerio de Ciencia e Innovación (award JCI2011-09709)Spain. Ministerio de Ciencia e Innovación (grant ECO2010-16726)National Science Foundation (U.S.) (grant SES-1227334
The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade
Get PDFChina’s emergence as a great economic power has induced an epochal shift in patterns of world trade. Simultaneously, it has toppled much of the received empirical wisdom about how labor markets adjust to trade shocks. Alongside its heralded consumer benefits, trade has both significant distributional costs, which theory has long recognized, and substantial adjustment costs, which the literature has tended to downplay. These adjustment costs mean that trade impacts are most visible not in national-level outcomes for broad skill types, as canonical theory would suggest, but in the local labor markets in which the industries most exposed to foreign competition are concentrated. Adjustment in local labor markets is remarkably slow, with wages and local labor-force participation rates remaining depressed, local unemployment rates remaining elevated, and public transfer benefits take-up rising across a spectrum of programs for at least a full decade after trade shocks commence. Within impacted localities, workers most affected by rising trade exposure are those initially employed in firms that compete most directly with China. Exposed workers experience greater job churning and reduced lifetime income, with the largest adverse effects among initially low earners. Recent literature also addresses the aggregation of local-level impacts of trade shocks into national-level outcomes. Employment has fallen in U.S. industries more exposed to import competition, as expected. So too has overall employment in the local labor markets in which these industries were concentrated. Offsetting employment gains in non-tradables, export-oriented tradables, or imported-input-using industries have yet to materialize. Better understanding when and where trade is costly, and how and why it may be beneficial, are key items on the research agenda for trade and labor economists
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