Tag Archives: Manufacturing

The Rise of Gross Operating Surplus in Manufacturing since 1960

Gross operating surplus, which is roughly value added less labor compensation, input costs, and production taxes, has increased substantially in the manufacturing sector since 1980. Gross operating surplus includes consumption of fixed capital (CFC), proprietors’ income, and corporate profits. Note that this measure is … Continue reading

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Manufacturing Decline, Housing Booms, and Non-Employment

Kerwin Kofi Charles, Erik Hurst, and Matt Notowidigdo argue that the housing boom masked a structural decline in manufacturing employment in a recent paper. They estimate that 40% of the increase in non-employment from 2000-2011 can be attributed to the … Continue reading

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Coveting Thy Neighbor’s Manufacturing – Is State Tax Competition A Zero Sum Game?

Many people have been focused on state tax incentives of late. Earlier I posted about some work by Moretti and Greenstone that concludes local subsidies improve residents’ welfare (perhaps partly due to sizable employment spillovers). With that in mind, I wanted … Continue reading

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Enrico Moretti on the Future of Manufacturing

Q: Both presidential candidates pledge to restore the U.S. manufacturing industry. Some economists say that’s essential; others say it’s impossible. What’s your take?  A: The last two years have been good years for manufacturing employment, but they are the exception. … Continue reading

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