Research fellow Michael Schrage speaks with Fortune reporter Sheryl Estrada about generative AI’s role in the digital economy. “If you truly understand and structure your use cases for generative AI correctly, there’s much less risk associated with the investment,” says Schrage.
Prof. Simon Johnson speaks with Freakonomics guest host Adam Davidson about his new book, economic history, and why new technologies impact people differently. “What do people creating technology, deploying technology— what exactly are they seeking to achieve? If they’re seeking to replace people, then that’s what they’re going to be doing,” says Johnson. “But if they’re seeking to make people individually more productive, more creative, enable them to design and carry out new tasks — let’s push the vision more in that direction. And that’s a naturally more inclusive version of the market economy. And I think we will get better outcomes for more people.”
A study co-authored by Prof. S.P. Kothari has found that, at an aggregate level, repurchasing shares neither creates nor destroys much wealth, reports Jamie McGeever for Reuters. The study concludes that “buybacks return several hundred billion dollars of capital to shareholders every year and are a mainstream financial avenue open to companies ‘that for the most part do not harm the overall market,” reports Jamie McGeever for Reuters.
Forbes reporter Roger Trapp spotlights Prof. Zeynep Ton’s work in improving employer operations as part of an effort to better satisfy employees. Ton has written two books, “Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits” and “The Case for Good Jobs,” which explores how “a combination of high investment in people and a set of choices [can produce] operational excellence,” writes Trapp.
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.”