A new white paper by Prof. Daron Acemoglu and graduate student Andrea Mandera finds that the U.S. tax code incentivizes companies to invest in automation rather than employees, reports Peter Coy for Bloomberg. “Favorable taxation of capital leads to excessive automation,” explains Acemoglu.
New York Times reporter David Leonhardt spotlights a new study by Profs. David Autor, Joshua Angrist and Amanda Pallais of Harvard that examines the impacts of free public college for low-income students. The researchers found that focusing on lower-income students, "could have a big impact while also leaving more money available for other priorities, be it health care, climate change — or investing more money in the quality of education at community colleges.”
A study co-authored by Prof. Jonathan Gruber finds that the Affordable Care Act’s individual mandate did not significantly impact coverage rates, reports Sarah Kliff for The New York Times. “The mandate made a difference, but not a huge difference in terms of the numbers of people signing up,” says Gruber.
Prof. Sinan Aral speaks with GBH’s Arun Rath about his study showing that a lack of coordination between states on their reopening plans can lead to an influx in Covid-19 cases. Rath also spotlights the Broad Institute’s work processing over 1.5 million diagnostic tests for coronavirus since March 25.
In a piece exploring why certain countries experience wealth or poverty, The Economist spotlights Prof. Daron Acemoglu’s book, “The Narrow Corridor,” and recent research by Acemoglu and Prof. Simon Johnson. The Economist notes that Acemoglu and Johnnson “found a further element of randomness which may explain contemporary patterns of wealth and poverty—namely, which countries are more prone to certain diseases.”
Profs. Esther Duflo and Abhijit Banerjee join NPR’s Planet Money for overrated or underrated, a game in which Banerjee and Duflo, winners of the 2019 Nobel Prize in Economic Sciences, “rate everything from bread to foreign aid to dating an economist.”
A new working paper by MIT researchers details how the use of a universal basic income (UBI) helped people in Kenya with difficult economic situations, writes Kelsey Piper for Vox. The researchers found that the UBI provided “income benefits in good times and then stability benefits during bad times,” says Prof. Tavneet Suri.
Wall Street Journal reporter Christopher Mims spotlights Prof. Daron Acemoglu’s research examining the impact of automation on employment and a new essay from Prof. David Autor and Dr. Elisabeth Reynolds that illustrates how the pandemic could exacerbate economic inequality.
In a letter to the Financial Times, graduate student Daniel Aronoff underscores his view that central banks should proceed with caution when considering digital currencies. “The US Fed and other central banks are wise to embark on the research that will keep them at the forefront of knowledge and, possibly, enable them to develop implementations that are safe and beneficial to the citizens of their countries,” writes Aronoff.
Newsweek reporter Meghan Roos writes that a study co-authored by Prof. Victor Chernozhukov finds a nationwide mask mandate in the U.S. could have reduced Covid-19 deaths by 40% among workers who regularly interact with the public. The researchers found “a national mask mandate for workers could have prevented between 17,000 and 55,000 deaths between the start of April and the start of June.”
Bloomberg reporter Yifan Feng writes that a new study co-authored by MIT researchers shows women have been disproportionately impacted during Japan’s Covid-19 recession. The researchers found that “female workers fare worse than males and their negative welfare effects are three times as large as those of male workers.”
A study by MIT researchers encourages neighboring states to more closely coordinate business reopening plans during the Covid-19 pandemic, reports James Hohmann for The Washington Post. The researchers “used data from mobile phones, social media and the census to conclude that residents are worse off when reopening is not coordinated among states and regions.”
The Economist spotlights a recent essay by Prof. David Autor and Elisabeth Reynolds, executive director of the MIT Task Force on the Work of the Future, about the impact of the coronavirus pandemic on the state of work. “If remote working proves a lasting shift, then the café staff, taxi drivers and cleaners who depend on their custom could find themselves out of work,” writes The Economist.
MIT researchers have found that the Paycheck Protection Program helped protect around 2.3 million jobs, reports Jonnelle Marte for Reuters. “The researchers compared hiring trends at companies that were eligible for the program to those that were too large to qualify,” writes Marte. “They found that hiring at eligible companies rose after the launch of PPP when compared to companies that did not qualify.”
Bloomberg reporter Maeve Sheehey writes that a new study co-authored by MIT researchers finds that the Paycheck Protection Program helped to boost employment by 2% to 4.5%. “The research suggests that providing money directly to companies helped curb job losses during the pandemic,” writes Sheehey.