Economics

Fortune reporter Tristan Bove spotlights a study led by economists from MIT, Stanford, the University of Chicago and Mexico’s ITAM on how workers are spending their time while working from home. “Pandemic habits give Americans around 70 minutes of extra free time a day,” writes Bove. “The lion’s share of this, around 60 minutes, comes from getting rid of commuting, but workers have also spent around nine minutes less on average doing daily activities such as grooming or picking out fresh clothes.”

Economists from MIT, Stanford, the University of Chicago, and Mexico’s ITAM polled U.S. workers to see how the pandemic impacted American’s work from home setup, reports Nate DiCamillo for Quartz. “Overall, remote workers report that they’ve become more efficient at working from home than in office,” writes DiCamillo.

The Economist spotlights a study by MIT researchers that found that less than a third of Paycheck Protection Program (PPP) funding went to workers who would otherwise have been laid off. “Almost $366bn – 72% of funding in 2020 – went to households making more than 144,000 per year,” writes The Economist.

Prof. David Mindell writes for Forbes about the premise behind his new book, “The Work of the Future: Building Better Jobs in the Age of Intelligent Machine,” which he wrote with Prof. David Autor, and Elisabeth Reynolds, former director of MIT’s Industrial Performance Center. The new book “concerns demographic shifts in the United States that will generate consistent labor shortages for a generation; the continued profusion of information technology and mobile phones into legacy sectors such as logistics, construction, and transportation; technology-enabled remote work, conferencing, and training; and a long-term need for improved training, reeducation, and upskilling among low – and middle – skill workers,” writes Mindell.

Prof. David Autor speaks with New York Times columnist Peter Coy about the new book he wrote with Prof. David Mindell and Elisabeth Reynolds, “The Work of the Future: Building Better Jobs in an Age of Intelligent Machines.” Autor explains that: “Most people’s fear of technology is really a fear of capitalism, what the markets will do with the technology. You can’t make a lot of progress if you’re making people poorer at the same time.”

Forbes reporter Abdo Riani spotlights an MIT and Northwestern study that uncovered why startup founders should be more cautious when listening to customer feedback. In a “study of six years’ worth of transactional data of 130 thousand customers in large retail chains…[researchers] made an interesting discovery – about 25% of customers consistently buy products that end up failing within 3 years,” writes Riani.

The Economist highlights new work by MIT researchers investigating the impact of automation on the labor market. A study by graduate student Joonas Tuhkuri finds that at Finnish firms “adoption of advanced technologies led to increases in hiring.” Meanwhile a new book by Profs. David Autor, David Mindell and Elisabeth Reynolds concludes that “even if robots do not create widespread joblessness, they may have helped create an environment where the rewards are ‘skewed towards the top.’”

Writing for the Financial Times, Prof. Kristin Forbes emphasizes the importance of central banks reducing their balance sheets during economic recoveries. “Now is an opportune moment to use their balance sheets to fight inflation while supporting a balanced and sustainable recovery,” writes Forbes.

Forbes has named Raya Ani ’94, Ngozi Okonjo-Iweala MCP PhD ’81, ’78, and former postdoc Shulamit Levenberg to their 50 Over 50 list, which highlights women from Europe, the Middle East and Asia who are leading the way, reports Maggie McGrath for Forbes. “Women around the world are proving that 50 and beyond is the new golden age,” writes McGrath.

Fast Company reporter Clint Rainey writes that a new study co-authored by MIT economists finds that the bulk of the loan money handed out through the Paycheck Protection Program (PPP) helped business owners and shareholders. The researchers estimate that “somewhere between 23% and 34% of PPP dollars went to workers who would’ve otherwise lost their jobs,” writes Rainey. “The rest of the loan money—a full two-thirds to three-fourths—landed in the pockets of either the company’s owners or shareholders.”

Forbes reporter Christ Westfall spotlights “The Work of the Future: Building Better Jobs in an Age of Intelligent Machines,” a new book by Prof. David Autor, Prof. David Mindell and Research Scientist Elizabeth Reynolds that explores the future of work in America. “The US has allowed traditional channels of worker voice to atrophy without fostering new institutions or buttressing existing ones,” they write. “It has permitted the federal minimum wage to recede to near irrelevance.”

New York Times reporter Steve Lohr spotlights Institute Prof. Daron Acemoglu’s research showing that “excessive automation” has contributed to rising inequality. “We need to redirect technology so it works for people,” says Acemoglu, “not against them.”

Pierre-Oliver Gourinchas PhD ’96 has been appointed chief economist by the International Monetary Fund, reports Ana Monetiro for Bloomberg. “The economist, a French national who is also program director of international finance and macroeconomics at the National Bureau of Economics Research, was an IMF visiting scholar and the editor-in-chief of the IMF Economic Review from 2009-2016,” writes Monetiro.

MIT was named one of the top ten institutions for economics research in the Higher Education Research and Development Survey released by the National Science Foundation, reports Michael Nietzel for Forbes.

GBH’s Basic Black host Callie Crossley speaks with Lecturer Malia Lazu,about how issues surrounding Covid-19, voting rights, economic downturn, police brutality, education, climate change and politics will impact communities of color in the coming year. “What I see is a democracy fighting itself,” says Lazu. "People in power, republicans or democrats, being bought into the idea of democracy more than the people in the democracy.”