Prof. Kristin Forbes speaks with Bloomberg reporters Haidi Stroud-Watts and Sherry Anh about her outlook on the future of the economy and economic policy “We just don’t know right now where unemployment could settle, where inflation settles around 2%,” says Forbes. “We don’t know where interest rates could settle to balance growth and employment, according to the Fed’s mandate.”
A new working paper co-authored by Prof. Nathan Wilmers finds that affordable chain restaurants can provide “much more socioeconomic integration than do independently owned commercial businesses — or, for that matter, traditional public institutions,” reports Catherine Rampell for The Washington Post. “The authors analyzed a massive trove of geolocation data to assess where and when Americans come into contact with people of different income classes than themselves,” writes Rampbell, “if they do at all.”
Prof. Scott Stern co-leads the Place-Based Innovation Policy Study Group – “a group of academics, practitioners and NSF staff that aims to deploy ‘timely insight for the NSF Regional Innovation Engines program,’” reports Nature. Stern and his colleagues are “providing an assessment of the ‘state of knowledge’ of place-based innovation ecosystems and their relationship to geographical and socio-economic inclusion,” writes Nature.
Prof. Emeritus Thomas Kochan speaks with Sarah Gonzalez of NPR’s Planet Money about why European workers tend to be allotted more vacation time than workers in the U.S. Kochan notes that “if given the option, workers are historically more interested in seeing their take-home pay increase than they are in getting another day or week of vacation,” particularly when they have to cover the costs of health insurance.
A working paper co-authored by Prof. John Horton and graduate students Emma van Inwegen and Zanele Munyikwa has found that “AI has the potential to level the playing field for non-native English speakers applying for jobs by helping them better present themselves to English-speaking employers,” reports Medora Lee for USA Today. “Between June 8 and July 14, 2021, [Inwegen] studied 480,948 job seekers, who applied for jobs that require English to be spoken but who mostly lived in nations where English is not the native language,” explains Lee. “Of those who used AI, 7.8% were more likely to be hired.”
A number of MIT alumni including Elaheh Ahmadi, Alexander Amini, and Jose Amich have been named to the Forbes 30 Under 30 Local Boston list.
Prof. Kristin Forbes speaks with New York Times reporter Jeanna Smialek about the future of interest rates in the United States. “Now, the economy has learned to function with higher interest rates,” says Forbes. “It gives me hope that we’re coming back to a more normal equilibrium.”
Prof. Simon Johnson speaks with Reuters reporter Mark John about the impact of AI on the economy. “AI has got a lot of potential – but potential to go either way,” says Johnson. “We are at a fork in the road.”
In a new working paper, researchers at MIT and UCLA examined a group of newly hired data entry workers in India and found that “workers randomly assigned to work from home full-time are 18% less productive than those in the office,” reports Jo Constantz for Bloomberg. As Constantz notes, “The new research underscores the challenges inherent in productivity research. Since the workers in the trial were newly hired, their outcomes may differ from employees who switch to fully remote only after first spending significant time on-site.”
Prof. Manish Raghavan speaks with The Washington Post reporter Danielle Abril about the risk of AI bias in employers’ recruitment behavior. “For example, AI could appear to be biased in matching mostly Harvard graduates to some jobs when those graduates may just have a higher likelihood to match certain requirements,” explains Abril. “Humans already struggle with implicit biases, often favoring people like themselves, and that could get replicated through AI.”
An analysis by the MIT Sloan Sustainability Initiative and Climate Interactive has found that planting a trillion trees would only prevent 0.27 degrees of warming by 2100, reports Maxine Joselow for The Washington Post. “Trees are great. I personally love to be out in the forests as much as I possibly can,” says Prof. John Sterman. “But the reality is very simple: You can plant a trillion trees, and even if they all survived, which wouldn’t happen, it just wouldn’t make that much difference to the climate.”
Prof. Emeritus Thomas Kochan writes for The Hill about the need for a new social contract that reflects the expectations of today’s workforce, including sizable wage increases due to inflation and a voice in the use of AI and generative technology. “Either labor and management negotiate a new social contract that is more responsive to what workers want and need today, or we will experience intensified conflicts that further divide our country,” writes Kochan.
Merritt Jenkins MBA '21 co-founded Kodama Systems, a startup developing a semiautonomous timber harvesting machine to remove tree and debris from forests and bury them in an effort to help combat global warming, reports Christopher Helman for Forbes. “Scientists say burying trees can reduce global warming as well—particularly if those trees would otherwise end up burning or decaying, spewing their stored carbon into the air,” writes Helman.
Financial Times reporter Andrew Hill spotlights Prof. Zeynep Ton’s new book “The Case for Good Jobs,” which presents “a tough, evidence-backed approach to improving what is often unhelpfully classed as ‘unskilled’ work.” Hill notes that: “Ton’s recipe has four ingredients: focus and simplify, standardize and empower, cross-train staff and ‘operate with slack’, which allows employees greater autonomy and gives them time to solve problems and come up with new ideas themselves.”
A study by researchers from MIT and Stanford University explored how customer service agents use generative AI chatbots in their response to tech support questions, reports Meghan McCarty for Marketplace. “The most experienced workers see no to even small negative effects of the AI being turned on for them, while the less-experienced and least-productive workers see on average 30 to 35% improvements in productivity,” explains graduate student Lindsey Raymond.