Tag Archives: Jobs

Are the Long-Term Unemployed on the Margins of the Labor Market?

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Unemployment Insurance and Disability Insurance in the Great Recession

From Andreas Mueller, Jesse Rotstein, and Till von Wachter: Disability Insurance (DI) applications are awards are countercyclical. One potential explanation is that unemployed individuals who exhaust their Unemployment Insurance (UI) benefits use DI as a form of extended benefits. We exploit … Continue reading

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The Cyclicality of the Opportunity Cost of Employment

From Gabe Chodorow-Reich and Loukas Karabarbounis:  The flow opportunity cost of moving from unemployment to employment consists of foregone public benefits and foregone utility from non-working time relative to consumption. Using detailed microdata, administrative data, and the structure of the search and … Continue reading

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Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Non-Participation

From Kory Kroft, Fabian Lange, Larry Katz, and Matt Notowidigdo: We explore the extent to which composition, duration dependence, and non-participation can account for the sharp increase in long-term unemployment (LTU) during the Great Recession. We first show that compositional shifts in … Continue reading

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Amerisclerosis? The Puzzle of Rising U.S. Unemployment Persistence

From Olivier Coibion, Yuriy Gorodnichenko, Dmitri Koustas: The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future U.S. recessions might look more like the Eurosclerosis experience of the 1980s than traditional V-shaped … Continue reading

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State Incentives for Innovation, Star Scientists and Jobs: Evidence from Biotech

From Enrico Moretti and Dan Wilson: We evaluate the effects of state-provided financial incentives for biotech companies, which are part of a growing trend of placed-based policies designed to spur innovation clusters. We estimate that the adoption of subsidies for biotech … Continue reading

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Profits without Production

Paul Krugman has an interesting op-ed out today linking economic rents to the pace of the recovery.  Since profits are high while borrowing costs are low, why aren’t we seeing a boom in business investment? And, no, investment isn’t depressed … 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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A Painfully Slow Recovery for America’s Workers: Causes, Implications, and the Federal Reserve’s Response

A new speech from Janet Yellen is worth reading. Here are some figures from the speech on the slow response relative to other recessions and the contribution of fiscal support (or lack thereof) for this recession. Premature fiscal contraction is … Continue reading

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The Economics of Immigration

Given the interest and policy relevance (as well as Miles Kimball’s immigration tweet day), I thought I’d write a post on the theory and empirics of the effects of immigration in the labor market. A simple starting point for thinking … Continue reading

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