Tag Archives: Middle Class

The Declining U.S. Labor Share

See here for more info from this paper by Bart Hobijn and Aysegul Sahin.

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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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How Changing Government Spending Affects Inequality

Juan Carlos Suárez Serrato, a friend and co-author of mine, has an interesting brief on government spending, inequality, and policy design. He analyzes “how differential valuations for government services between rich and poor lead to important implications for the link between … Continue reading

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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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Who Benefits from Technological Change?

Given recent concern about technological change and how it is wrecking the middle class, I thought I’d share a simple illustration of what classical economic models* imply about the relationship between productivity growth and the returns to workers and capital owners. … Continue reading

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Is Forgiving Student Loans the Worst Idea Ever?

The third pillar of President Obama’s new college affordability plan is “ensuring that student debt remains affordable.” Here’s a bit more detail: The President has proposed allowing all student borrowers to cap their federal student loan payments at 10 percent of … Continue reading

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Corporate Taxes and Union Wages in the United States

From Alison Felix and Jim Hines: This paper evaluates the effect of U.S. state corporate income taxes on union wages. American workers who belong to unions are paid more than their non-union counterparts, and this difference is greater in low-tax … Continue reading

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