HONORING LABOR DAY 2019 | SOCIAL INNOVATION
A Sampler of MIT Research on The Future of Work, Jobs, and Economic Equity
Research to Policy
The research of MIT's social scientists in the School of Humanities, Arts, and Social Sciences informs policymaking in many areas, among them: economic equity and well-being; jobs and the future of work; healthcare, poverty alleviation; the environmnent and climate; education; energy, food and water; elections, electoral infrastructure, and national security.
MIT launches Task Force on the Work of the Future
This Institute-wide effort, which is studying the evolution of jobs in an age of technological advancement, is led by two SHASS Professors, economist David Autor and historian David Mindell — in collaboration with Elisabeth Reynolds, of the Industrial Performance Center. Their guiding premise is that the social and human implications of technology are a first concern.
Story at MIT News
JOBS AND CITIES
Why aren't cities working for American workers? | David Autor
MIT economist Autor's recent research shows how economic polarization stems from urban job loss.
JUMP-STARTING AMERICA | NEW BOOK FROM MIT ECONOMISTS
Gruber and Johnson argue for significant research and development spending
MIT economists Jon Gruber and Simon Johnson talk about their new book Jump-Starting America, which argues for significant research and development spending outside already thriving areas to remedy the hollowed out nature of the U.S. economy. Johnson says: “We think it's very easy to spread prosperity through investing more in science and technology."
Story at Politico
One of the most important lessons of the innovative post-1945 period in the US is that research and development drive productivity, better jobs, and higher incomes. And "government support for science," say Gruber and Johnson, "can create an economic tide that lifts all boats.”
Investing in the brain
In their book, Jump-Starting America, MIT professors Jonathan Gruber and Simon Johnson have “produced a superbly argued case for public and private investment in education and research.” Review at the Wall Street Journal
How to make America grow again
“America desperately needs more hubs of growth, where talent and money can converge to create new industries,” write professors Jonathan Gruber and Simon Johnson. “It’s a problem that the government can and should address, by identifying and investing in the technologies of the future — and ensuring that the American people as a whole share in the gains.” Full story via Bloomberg News
Coastal tech hubs reign, but smaller U.S. cities offer an edge
MIT economists Simon Johnson and Jonathan Gruber identified 102 potential places which could develop into tech hubs if they received significant public investment. Topping their list of potential hubs are Pittsburgh, Columbus, Ohio, and Rochester and Syracuse in New York. Story at Bloomberg
'Jump-Starting America' As an Invitation to a Conversation with Economic Conservatives
"What I want to hear are your reasons why you think that Gruber and Johnson — two MIT economists — are getting things wrong. Before we go over the main arguments for the book, and before I try to convince everyone that this book is worth the investment in time to read, let's get clear about the types of conservatives I'd like to engage."
Inside Higher Ed
SOLVING INCOME INEQUALITY
Five reasons why income inequality is now a major political issue | David Autor
"Computer software and industrial machines now fill roles — from clerical tasks to routine manufacturing — that once produced middle-class incomes for workers without college degrees. It has simultaneously devalued a lot of cognitively repetitive tasks in offices and on production lines.'"
Story + Video at CNBC
CNBC video featuring MIT economist David Autor
"The digital revolution creates enormous wealth for those with the skills and preparation to take advantage, but it eliminates what economists call 'middle-skill' jobs."
ON THE WEALTH OF NATIONS
All the difference in the world | Daron Acemoglu
In a recent book, economists Daron Acemoglu and James Robinson assert that above all else, political institutions — not culture or natural resources — determine the wealth of nations.
Why Nations Fail / Website | Story by Peter Dizikes at MIT News | Reviews
LABOR ECONOMICS AND AI
AI and the Future of Labor | Daron Acemoglu
Recent technological change has been biased towards automation, with insufficient focus on creating new tasks where labor can be productively employed.... [T]his might mean missing out on the promise of AI with better economic and social outcomes."
Paper: National Bureau of Economic Research | Acemoglu Webpage
THE FUTURE OF WORK
3Q: Daron Acemoglu on technology and the future of work
"We need to look to the past in the face of modern innovations in machine learning, robotics, artificial intelligence, big data, and beyond," says the economist.
Interview at MIT News
JOB TRAINING AND UPSKILLING
"Talent War" at home prompts U.S. employers to take another look abroad
MIT economist Jonathan Gruber said many US companies are paying the price for a dearth of investment in job training for AI and other digital skills at home.
Story at Wall Street Journal
THE FUTURE OF WORK | NEW KINDS OF JOBS
The 46 newest jobs identified by the US government
MIT's David Autor and Anna Salomons of University of Utrecht use data to try to understand the nature of jobs coming in the future. They find that most new job categories are a result of new technologies and increases in wealth that allow for niche jobs serving people with lots of disposable income.
Story at Quartz
ADDRESSING THE HEALTH ISSUES OF VANISHING WORK
One simple way to reduce suicides: Increase the minimum wage
In a paper to be published in American Economic Review: David Autor of MIT, David Dorn of the University of Zurich, and Gordon Hanson of the University of California at San Diego drew on data from 1990—2014 to find that the death rate among men tended to rise in cities where jobs were vanishing because of competition from cheap foreign goods.
Story at Washington Post
ROBOTICS AND JOBS
Are robots really coming for your job?
Today's workforce is sharply divided by levels of education, and those who have not gone beyond high school are affected the most by long-term changes in the economy, says David Autor, an MIT professor of economics. “It's a great time to be young and educated. But, Autor says, there's no clear land of opportunity” for adults who haven't been to college.
Story at Fast Company
IMPACT OF TRADE ON LABOR MARKETS
What a more equitable US trade policy could look like | David Autor
“International trade creates diffuse benefits and concentrated costs,” says MIT economist David Autor. “China’s rapid rise, while enormously positive for world welfare, has created identifiable losers in trade-impacted industries and the labor markets in which they are located.”
Story at the New York Times
THE FUTURE OF WORK
Kathleen Thelen brings expertise to MIT's Work of the Future task force
“The task force will be putting the interaction of technology and society at the forefront,” says Thelen.
Story by Leda Zimmerman
“The task force connects directly with my research to understand how new technologies and forms of work organization can be steered in ways that balance generating economic efficiencies with providing some level of social solidarity and equality."
— Kathleen Thelen, Ford Professor of Political Science
INNOVATION MEET ORGANIZATION
Van Reenen studies the creation and use of technology from lab to workplace.
“Technology can respond to the social and economic environment. There are policies which can be used to spur the creation of new technologies.” Creating new technologies is one thing; using them well is another.
Story at MIT News
ECONOMICS AND DEMOCRACY
The Democracy Dividend: Faster Growth | Daron Acemoglu
Countries that democratize — switch from a nondemocratic regime such as a dictatorship, monarchy, or autocracy to a democratic regime — grow more rapidly in the next 20 years or so, and end up with 20 percent higher income per capita.
SOLVING ECONOMIC INEQUITIES
SOLVING ECONOMIC INEQUALITY
At MIT, Thomas Piketty calls for policies to reduce worldwide inequalities
Gives keynote address to the 2018 World Economic History Congress. "Rising inequality is highly correlated to unequal access to education. In the United States, 95 percent of those with parents at the highest income levels attend college, while only about 20 percent of the poorest do, research shows."
Story at SHASS News
HEALTH AND INCOME INEQUALITY
Income inequality is costing the U.S. on social issues | Heidi Williams
This New York Times article on the possible public health ramifications of rising inequality cites research by MIT economist Heidi Williams that finds a connection between infant mortality and “excess inequality.”
Article at The New York Times
The corporate world has its own inequality problem
It's easy to draw a line from company inequality to individual inequality: Superstar companies pay their own people well, but they are highly productive so they don't have a lot of employees per dollar of sales or profit. Workers lose, while capitalists win, concludes David Autor of MIT and four other authors.
Story at Bloomberg Businessweek
J-PAL NORTH AMERICA
J-PAL NA launches initiative for a more equitable future of work.
Creating more equitable work requires reliable evidence about what approaches really work. J-PAL NA's new initiative aims to provide rigorous, actionable evidence via an "innovation competition" model.
Story | Apply | Info webinar | Bi-annual RFP
"The link between the two parts of the modern dual economy is education, which provides a possible path that children of low-wage workers can take to move into the FTE (finance, technology, electronics) sector."
— Peter Temin, Elisha Gray II Professor Emeritus of Economics, author of The Vanishing Middle Class, Prejudice and Power in a Dual Economy
MANUFACTURING, JOBS, AND CHINA
Protectionism | David Autor
"In 1970, more than a quarter of U.S. employees worked in manufacturing. By 2010, only one in 10 did. The growth in imports from China had a role in that decline — contributing, perhaps to as much as one-quarter of the employment drop-off from 1991 to 2007, according to an analysis by David Autor and his colleagues at MIT. But the U.S. jobs slide began well before China's rise as a manufacturing power. The phenomenon is driven by technology.”
Story at the Huffington Post
ECONOMICS AND MARRIAGE
When factory jobs vanish, men become less marriageable | David Autor
Economics Professor David Autor and a team of co-authors from other universities recently found that as men's economic prospects declined, there were fewer marriages in their communities due to the fact that “manufacturing jobs are a fulcrum on which traditional work and family arrangements rest.”
Story at The Atlantic | Related stories at Bloomberg and The Washington Post
INFRASTRUCTURE THAT ENABLES RISK-TAKING
How to succeed in the innovation era | Daron Acemoglu
In an article in The New York Times, MIT economist Daron Acemoglu says that to succeed in the innovation era we need to build institutions that help us stay flexible in the midst of turbulent lives, including a stronger safety net that enables us to take entrepreneurial, educational, and career risks; because a society that encourages risk will intrinsically be wealthier over all.
Article in the New York Times
ECONOMICS AND TRADE
Trade deficit is a poor measuring stick for the economy
The Washington Post quotes MIT economist David Autor in its analysis of Trump’s trade philosophy. As Autor explains, “You have to understand the fundamental reason for trade is not because you win by exporting and lose by importing — it’s that there are things that other countries make that you want to buy, and things you make that they want to buy.”
Story at the Washington Post | Related Story at the WaPo
MAKING FAIR CONTRACTS
MIT economist Bengt Holmström receives Nobel Prize in Stockholm
Story + Videos from the Lecture and Ceremony
Video of the Nobel Prize Lectures in Economics
MIT Economist Bengt Holmström on his Nobel Prize-winning ideas for making fair and wise human agreements | Thursday, 8 December 2016. Professor Holmström's lecture starts at 29:40.
One reason workers are struggling even when companies are doing well | David Autor
A new study co-authored by MIT economist David Autor studied 700 industries from 1982–2012 and found that “the more concentrated an industry had become, the larger the decline in labor’s share.”
Story at The Atlantic | Related stories at Bloomberg News and The New York Times
WORK AND SOCIAL INSURANCE
Caught in the social safety net | Andrea Campbell
Campbell gives a firsthand perspective on the effects of means-tested social insurance programs. “Work has a high cost, because as you start earning income, you lose eligibility for programs,” Campbell says, noting that for everyone without a remarkable long-term care insurance policy, long-term services and support are “extraordinarily expensive, beyond [their] means.” To change that dynamic, Campbell thinks we should either raise the asset threshold or drop means-testing.
Story at MIT News | Commentary in The New York Times
Understanding the growing inequality in the U.S. | Christine Walley
"If you want to understand the expanding class inequality in the United States, one of the places you have to look is the long-term impact of deindustrialization. We have to think historically about how we got into this position and how we can come out of it.”
In 1980, Christine Walley’s world was turned upside down when the steel mill in Southeast Chicago where her father worked closed abruptly. In the ensuing years, thousands of other area residents would also lose their jobs in the mills—one example of the vast deindustrialization occurring across the U.S. The disruption propelled Walley into a career as a cultural anthropologist. In her book, Exit Zero, MIT anthropologist Christine Walley brings her anthropological perspective home, examining the human cost of deindustrialization in the American heartland.
Story + Video | About the Exit Zero Project | Trailer for Exit Zero video
What is the impact of deindustrialization in the U.S. — on American lives, families, and communities?
ROBOTS AND JOBS
ROBOTICS AND JOB CREATION
The robot debate is over: the jobs aren't coming back | David Autor
The Guardian explores the impact of automation on U.S. employment, citing MIT economist David Autor as “the most influential proponent” of the argument that new technology ultimately creates as many jobs as it destroys.
Story at The Guardian
ROBOTICS AND JOBS
Are we prepared for the robot apocalypse? | Daron Acemoglu
The Washington Post reports on new research co-authored by MIT economist Daron Acemoglu, which finds that industrial robots eliminated up to 670 thousand American jobs between 1990 and 2007.
Story at The Washington Post
ROBOTICS AND JOBS
How many robots does it take to replace a human job? | Daron Acemoglu
The Atlantic reports on a new study co-authored by Daron Acemoglu, Elizabeth and James Killian Professor of Economics at MIT, which finds that each new robot replaces three human workers.
Story at The Atlantic
ROBOTICS AND THE FUTURE OF JOBS
How the rise of the robots will affect the future of jobs | David Autor
It’s a good time to have specialized skills and a tough time to have “ordinary “skills, says MIT economist David Autor. According to Autor, “Computers robots, and other digital technologies are acquiring [traditional workers’] skills and abilities at an extraordinary rate.”
Story at CNBC | Story at CBS News
ROBITICS AND JOBS
Most workers have held off the machines | David Autor and Brendan Price
Jobs with very routine tasks have declined in the U.S., according to a paper by economists David Autor and Brendan Price, entitled “The Changing Task Composition of the U.S. Labor Market.”
Story at Bloomberg
IMPACT OF ROBOTICS ON AMERICAN JOBS
Evidence that robots are winning the race for American jobs | Daron Acemoglu
Journalist Claire Cain Miller calls a new publication co-authored by MIT economist Daron Acemoglu “the first study to quantify large, direct, negative effects of robots.”
Story at The New York Times
David Mindell on human-centered robotics, autonomy, and bilingual education
"Decades of experience have taught us that to function in the human world, autonomy must be connected, relational, and situated. Human-centered autonomy in automobiles must be more than a fancy FitBit on a driver; it must factor into the fundamental design of the systems: What do we wish to control? Whom do we trust? Who owns our data? How are our systems trained? Mindell is the Dibner Professor of the History of Engineering and Manufacturing (in MIT-SHASS), a Professor of Aeronautics and Astronautics (in MIT Engineering), and the Co-founder and CEO of Humatics Corporation.
3 Questions Interview
David Mindell on the human dimensions of technological innovation
“The new success of robots will depend on how well they situate into human environments; as in chess, the strongest players are often the combinations of human and machine. I increasingly see that the three critical elements are people, robots, and infrastructure — all interdependent."
“The new frontier is learning how to design the relationships between people, robots, and infrastructure. We need new sensors, new software, new ways of architecting systems.”
— David Mindell, Dibner Professor of the History of Engineering and Manufacturing, and Professor of Aeronautics and Astronautics
INFRASTRUCTURE AND THE ECONOMY
Nobel laureate: Long path to economic renewal, but energy innovation could help
Robert Solow, Professor of Economics emeritus says investments in energy and infrastructure could help revive the economy.
Story by Peter Dizikes at MIT News
How much does infrastructure boost an economy? | David Donaldson
Donaldson's acclaimed, innovative study, "Railroads of the Raj," which details how railroads helped India trade and grow, may also speak to the importance of infrastructure more broadly. In the U.S., debate rolls on about the value of building and refurbishing America’s roads, bridges, railroads, ports, and airports.
Story at MIT News | Donaldson receives 2017 Clark Medal
When (and where) work disappears
Study: Overseas manufacturing competition hits U.S. regions hard, leaving workers unemployed for years and local economies struggling.
At MIT forum, economists evaluate the consequences of increasing inequality in America, and suggest solutions.
Story by Peter Dizikes at MIT News
EQUALITY AND EDUCATION
Education really does reduce inequality | David Autor
This article cites MIT economist David Autor, whose research indicates that an increase in wages for the top 1% between 1980 and 2005, if divided among the bottom 99%, would provide each household about $7,000 in additional income.
Article at the Wall Street Journal
Incremental reforms could make capitalism a more equitable system | Kathleen Thelen
In Varieties of Liberalization and the New Politics of Social Solidarity, MIT political scientist Kathleen Thelen examines contemporary changes in labor market institutions in the United States, Germany, Denmark, Sweden, and the Netherlands, focusing on developments in three arenas: industrial relations, vocational education and training, and labor market policy. Thelen finds that there are distinct varieties of liberalization associated with very different distributive outcomes.
About the book | Interview with Thelen
PRODUCTION IN THE INNOVATION ECONOMY
MIT PIE Report released | Making in America by Suzanne Berger
America is the world leader in innovation, but many of the innovative ideas that are hatched in American start-ups, labs, and companies end up going abroad to reach commercial scale. When innovation does not find the capital, skills, and expertise it needs to come to market in the United States, what does it mean for economic growth and job creation? Inspired by the MIT Made in America project of the 1980s, Making in America brings experts from across MIT to focus on a critical problem for the country.
The PIE commission found that potentially valuable innovations occur throughout the advanced manufacturing sector—from academic labs to shop floors—and in companies of all sizes, from multinational conglomerates to specialized “Main Street” firms. However, there are holes in the “ecosystem” of advanced manufacturing in the United States—gaps that particularly inhibit innovative smaller firms. The report suggests that new policies, partnerships and programs can help create innovation-based growth and jobs. Many of the results are detailed in Making in America (MIT Press, 2013), written by Suzanne Berger, with the PIE Task Force. Berger is the Raphael Dorman-Helen Starbuck Professor of Political Science, and a co-chair of the MIT PIE Commission.
Story at MIT News | Making in America (MIT Press, 2013) | 3Q with Suzanne Berger | Slice of MIT
ECONOMICS AND THE AMERICAN MIDDLE CLASS
On the state of the American dream | Solow
This U.S. News article on inequality and middle-class stagnation quotes MIT economist Robert Solow, who says, “evidence of the importance of the digital revolution is everywhere except in the productivity numbers.”
Story at US News
The American worker | David Autor
In 1979, middle-skill jobs accounted for 57 percent of the jobs in the U.S. economy, according to calculations by David Autor, an economist at the Massachusetts Institute of Technology. By 2009, the share was down to 46 percent.
Story at the Washington Post | Autor webpage
LABOR MARKET AND DEVELOPMENT
Economy in Society: Essays in Honor of Michael J. Piore | MIT Press, 2012
In Economy in Society, five prominent social scientists honor Michael J. Piore, MIT Professor of Political Science, in original essays that explore key topics in Piore’s work and make significant independent contributions in their own right. Piore is distinctive for his original research that explores the interaction of social, political, and economic considerations in the labor market and in the economic development of nations and regions. The essays in this volume reflect this rigorous interdisciplinary approach to important social and economic questions.
Working in America | Michael Piore
The American labor market faces many deep-rooted problems, including persistence of a large low-wage sector, worsening inequality in earnings, employees' lack of voice in the workplace, and the need of employers to maximize flexibility. This book traces today's labor-market policy and laws back to the New Deal and to a second wave of social regulation that began in the 1960s.
Big Mac test shows job market is not distributing wealth
If the job market — that most critical institution of capitalist societies, the principal vehicle to distribute the nation’s wealth among its people — cannot keep hardworking people out of poverty and spread prosperity more broadly, how will it be done? Article quotes MIT economist David Autor.
Story at the New York Times
What everyone needs to know about the economy | David Autor
Ford Professor of Economics David Autor answered questions about economic issues in a Quora forum online, providing expert insight into some of our most pressing issues.
Discussion on Forbes / Quora Forum | David Autor's website
CRAFTWORK AND ARTISANAL PRODUCTION
The Life of Cheese: Crafting Food and Value in America | Heather Paxson
An anthropological study of American artisanal cheese and the people who make it. Cheese is alive, and alive with meaning. This study tells the story of how craftwork has become a new source of cultural and economic value for producers as well as consumers. By exploring the life of cheese, Paxson helps rethink the politics of food, land, and labor today.
Life of Cheese website | University of California Press | Video: Paxson on artisan cheese
PREPARING FOR CHANGE
Why do people earn what they earn? | David Autor
"As MIT economist David Autor notes in a new paper, leaders in the late 1800s and early 1900s, particularly in the farm states, anticipated the coming tectonic shift in the economy and worked to prepare the population for it."
Story at The Boston Globe
WOMEN AND ENGINEERING
Why do women leave engineering?
Study: Group dynamics of teamwork and internships deter many women in the profession.
Story at MIT News
What can be done about income inequality? | Robert Solow
Redistributing income with taxes and transfers is largely failing to close the income gap. Perhaps it’s time to try a corporate approach.
Story at the New York Times
DIVERSITY IS EFFICIENT
Workplace diversity can help the bottom line | Sara Ellison
MIT economist scrutinizes firm data suggesting diverse offices function more effectively.
Story by Peter Dizkies at MIT News
ENVISIONING THE FUTURE
What’s the future of wealth — and inequality? | Thomas Piketty
At MIT, Eeconomist Thomas Piketty presents and defends work on inequality. Piketty was an assistant professor at the Institute from 1993 to 1995, and returned as a visiting professor in the 2000-2001 academic year. He has also co-authored articles with multiple MIT scholars.
Story at MIT News | Related from The Guardian: Why is Piketty's book a bestseller?
INVESTING IN CITIZENS IS THE BEST POLICY
Q&A | U.S. inequality issues among the “99 percent”
In an article in Science, MIT economist David Autor moves the U.S. inequality discussion beyond the 1% vs. 99% comparison. In the long run, he says, "the best policies we have to combat inequality involve investing in our citizenry. Higher education, and public education, is America’s best idea. Those investments also include preschool, good primary and secondary schools, and adequate nutrition and health care."
Story by Peter Dizikes at MIT News
Labor Day parade, New York City 1909; Library of Congress Prints and Photographs Division
Is the American middle class losing out to China and India?
Entering the fray, three economists — David Autor of MIT, David Dorn of the Center for Monetary and Financial Studies in Spain, and Gordon Hanson of the University of California, San Diego — have analyzed the employment consequences of globalized trade and technological advance.
Story at The New York Times
RECESSION AND TWO AMERICAS
A tangled fate of prosperity and struggle | Daron Acemoglu
For MIT Economist Acemoglu, the co-author of Why Nations Fail, the split personality of these years of crisis and recovery is “no puzzle.” “The United States is still the most innovative country in the world,” he said. The problem, he says, is that the innovations produced by the thriving set don’t necessarily translate into jobs for struggling people.
Story at The New York Times
Ten Ways to Get Serious About Rising Inequality | Peter Diamond, Emmanual Saez
From point 4 of 10: "In a 2011 paper that sparked an interesting debate, Peter Diamond, Professor of Economics emeritus, and Emmanuel Saez of Berkeley [MIT PhD in Economics '99] argued that, based on the costs and benefits to society as a whole, [the top tax rate] should be set at seventy-three per cent—a bit below the level in the nineteen-fifties, but well above today's rate."
Article in The New Yorker
ECONOMICS AND CLIMATE CHANGE
3 Questions | Benjamin Olken on the economic impact of climate change
How is climate change going to affect our economic activity in the future? MIT economist Ben Olken has co-authored a new survey on the burgeoning research about the effects of the changing climate.
"There has been a lot of emphasis on studying the effects of climate change on agriculture. But if it’s affecting other aspects of the economy — like industrial output, investment, and innovation — the long-run impact could be much bigger."
— Ben Olken, MIT Professor of Economics
U.S. JOB MARKET
Polarized labor market shifting more American employees to low skill, low growth jobs
New study by MIT economist David Autor, and economist David Dorn, reveals the U.S. job market is shifting more workers into positions with limited upside, leverage, and rewards.
GROWTH WITH EQUALITY
A new path for growth | Ben Ross Schneider
In Hierarchical Capitalism in Latin America, MIT political scientist Ben Ross Schneider sets out an agenda for growth with greater equality in Latin America. Schneider is Ford International Professor of Political Science and director of the MIT-Brazil program.
3 Questions: David Autor on global trade and political polarization
Study finds relationship between U.S. job losses due to trade, and political polarization in Congress.
Story at MIT News
THE IMPORT OF IMPORTS
When giants slow down | Acemoglu, Autor, Price
The most dramatic, and disruptive, period of emerging-market growth the world has ever seen is coming to its close. MIT's Daron Acemoglu, David Autor, Brendan Price, and others argue that the sag in employment growth in America in the 2000s is traceable in large part to the country's unreciprocated taste for Chinese imports.
Venerable Theory of Comparative Advantage put to new uses | Arnaud Costinot
With the growth of China and Latin American economies, among others—many dissimilar countries, with wildly varying institutions, are trading with each other. “The comeback of Ricardian theory today is, in part, as a response to those trends,” Costinot says. Trade between developed and less-developed economies “is on the rise and it seems to be quite different. We may need new theories, or old theories and their extensions may be better suited to it.”
GRAPPLING WITH TECHNOLOGICAL CHANGE
Technology, Jobs, and the Middle Class | David Autor and David Dorn
"Computerization is not reducing the quantity of jobs, but rather degrading the quality of jobs for a significant subset of workers....This bifurcation of job opportunities has contributed to the historic rise in income inequality. The good news is that middle-wage jobs are not slated to disappear completely.... How can we help workers ride the wave of technological change rather than be swamped by it?"
Commentary in the New York Times
Photo via Flickr/ courtesy of RainForestAction
ROLE OF GOVERNMENT
To end slump, United States must spend
In MIT remarks, former Treasury secretary Larry Summer calls for the ‘common sense’ cure of more government spending to spur growth. “No thoughtful person can look at the U.S. economy today and believe that the principal constraint on expansion of output and employment is anything other than the lack of demand experienced by firms,” Summers said. That is, not enough consumers in the country have sufficient spending power; government programs employing more people would change that, he asserted. “If the private sector is either unable or unwilling to borrow and spend on a sufficient scale, then there is a substantial role for government in doing that.”
Saving Social Security | Peter Diamond
The MIT Professor emeritus of Economics and recipient of the 2010 Nobel Prize in economics answers the big question of how to fix social security. "Diamond is an expert on public finance, especially Social Security, and has consulted for various government agencies on the program throughout the years. With Peter Orszag, he coauthored Saving Social Security: A Balanced Approach, which proposed shoring up the program through gradual, progressive benefit cuts and increases in the payroll tax rate." (Washington Post)
Paper at Brookings | Article at New Republic | Interview at the Washington Post
Reality check in the factory
MIT professor’s new book shows how labor laws actually get enforced, globally.