Tag Archives: Middle Class

The Top 1 Percent in International and Historical Perspective

From Facundo Alvaredo, Anthony B. Atkinson, Thomas Piketty, and Emmanuel Saez: The top 1 percent income share has more than doubled in the United States over the last thirty years, drawing much public attention in recent years. While other English speaking … Continue reading

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Technical Change and the Relative Demand for Skilled Labor: The United States in Historical Perspective

A new working paper from Larry Katz & Robert Margo This paper examines shifts over time in the relative demand for skilled labor in the United States. Although de-skilling in the conventional sense did occur overall in nineteenth century manufacturing, … Continue reading

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College Costs & Enrollment for Low-Income Students

According to data compiled by Avery & Hoxby, effective college costs are much lower for low income families at the most selective schools compared to other schools. Despite this fact, many low income students aren’t applying to the most selective … Continue reading

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Fiscal Policy and MPC Heterogeneity

Tullio Jappelli and Luigi Pistaferri have a recent paper called Fiscal Policy and MPC Heterogeneity. Here’s an interesting figure from it that shows how MPC varies by cash-on-hand: They aren’t the only ones who document MPC heterogeneity. Dynan, Skinner, Zeldes  have a … Continue reading

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Tax Cuts for Whom? Do tax changes for high income taxpayers generate more growth than similarly sized tax changes for lower income taxpayers?

        This figure, which is from a recently revised and submitted paper of mine, shows how the multiplier varies across the income distribution. It shows that equivalently sized tax changes for lower income groups have larger macroeconomic impacts on … Continue reading

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Hysteresis & the Unemployment Problem

Summers and Blanchard have a paper on Hysteresis in Europe in the 1980s in which they discuss three main potential causes of hysteresis, which is a very high dependence of current employment on past unemployment. The three causes are (1) physical … Continue reading

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Policy Implications of the Rise of Robots

After the forum that I posted about yesterday, there was a Q&A with Larry Summers. I asked him about the policy implications of living in a world of “Doers” and whether that should change how we think about pro-capital vs … Continue reading

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Larry Summers on Economic Possibilities for Our Children – Robots, Inequality, & Government Spending

I came across the lecture Larry Summers gave on the future of the next generation in which he talks about the rise of robots, inequality, government spending and many other interesting issues. Very much worth watching. Here’s a summary of some … Continue reading

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Inequality, the Allocation of Opportunity, and U.S. Economic Growth

Chang-Tai Hsieh, Erik Hurst, Peter Klenow, and Chad Jones have a recent paper on the allocation of talent and US economic growth in which they measure the macroeconomic consequences of reduced “occupational frictions” faced by women and blacks in the labor … Continue reading

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Innocent Bystanders? Monetary Policy and Inequality in the U.S.

Here’s a paper from some of my favorite macroeconomists on the link between  inequality and monetary policy. ABSTRACT: We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary … Continue reading

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