Bloomberg reporter Peter Coy writes that a new study by Prof. David Autor finds cities are no longer “escalators of opportunity” for people in middle-paying jobs, in particular Black and Latino workers. Coy writes that Autor proposes, “one solution is to raise minimum wages in cities, which would raise the living standards of low-income workers.”
A study by Prof. David Autor finds that cities no longer guarantee middle-wage opportunities for Black and Latino workers, reports Andrew Van Dam for The Washington Post. "Changes in occupational structure, in cities, have been larger and arguably less favorable among Blacks and Hispanics than among whites," says Autor.
Axios reporter Erica Pandey writes that a study by Prof. Thomas Kochan underscores how the Covid-19 pandemic has uncovered longstanding shortcomings in worker power. "The key to going from isolated protests at a place like Amazon or Walmart to a force that’s really going to get the company to respond is the customer," says Kochan."Customers are the hidden source of power for workers."
Writing for The Boston Globe, Prof. Amy Glasmeier, graduate student Zach Avre and Thomas Goff of Mass Economics argue for extending unemployment benefits and raising the federal minimum wage. “The quickest way to make all Americans sleep easier at night — and be willing to go back to work and help the economy recover — is by providing a living wage to get by in the era of COVID-19,” they write.
Prof. Erik Brynjolfsson speaks with Greg Rosalsky of NPR’s Planet Money about a new study that finds about half of the American workforce is now working remotely. Brynjolffson says he feels, "this portends a much bigger shift in the economy.”
Writing for the New York Times, Prof. Yasheng Huang argues that Chinese policies favoring the state sector over the private sector have played a bigger role in the country’s economic slowdown than the current trade war. “That the Chinese economy is slowing down isn’t necessarily a bad thing, at least not in itself,” says Huang. “But a slowdown is a problem if it’s the result of poor policy.”
Writing for the New York Times, Prof. Yasheng Huang argues that Chinese policies favoring the state sector over the private sector have played a bigger role in the country’s economic slowdown than the current trade war. “That the Chinese economy is slowing down isn’t necessarily a bad thing, at least not in itself,” says Huang. “But a slowdown is a problem if it’s the result of poor policy.”
A new paper from Prof. Kristin J. Forbes finds that the increased impact of globalization on the rate of inflation will affect everything from government policy to stock market returns. “The study's findings also suggest that central banks may be losing their power to direct the economy,” reports Dion Rabouin for Axios.
Writing for the Financial Times, graduate student Daniel Aronoff examines the impact of the FedNow banking service, which aims to process and settle individual payments within seconds. FedNow will have a “revolutionary impact on the banking industry and monetary policy,” writes Aronoff. “When depositors are able to move funds costlessly and instantaneously between accounts, it will become feasible to arbitrage between banks in real time.”
Verge reporter Justine Calma writes that states in the Midwest and Great Lakes region could see $4.7 billion in health benefits by maintaining current renewable energy standards. “This research shows that renewables pay for themselves through health benefits alone,” explains Emil Dimanchev, senior research associate at MIT’s Center for Energy and Environmental Policy Research.
A new study by MIT researchers examining the impact of energy policies that reduce fine particulates in the air finds that there are “substantial health benefits in Rust Belt states when utilities are required to supply escalating amounts of renewable power,” reports Ben Geman for Axios.
A new paper by MIT researchers finds that instead of raising prices, companies are replying on “shrinkflation - reducing the size of products or their quality while charging the same price,” reports Dion Rabouin for Axios.
Prof. David Autor speaks with The Economist podcast “Money Talks” about how computers changed the US labor market, the impact of the rise of China and his own experience as an economist. “You have to take your results and accept them and sort of try to understand them,” said Autor. “You can’t simply reject them because they’re not consistent with what your expectations were.”
In an article for Fortune, Senior Lecturer Robert Pozen argues that the Federal Reserve should not lower interest rates. “When the U.S. economy falls into the next recession, as it inevitably must, the Federal Reserve needs to respond by sharply lowering interest rates,” writes Pozen. “However, U.S. interest rates are now so low that the Fed has little dry powder in its arsenal.”
A new MIT study shows that “China’s move away from fossil fuels would mean 2,000 fewer premature deaths in the U.S. by 2030,” reports John Fialka for E&E News. "It reminds us that air pollution doesn't stop at national boundaries," said Prof. Valerie Karplus, a co-leader of the paper.