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52 posts on "Labor Economics"

November 06, 2015

Health Inequality


However important income inequality is, it is only a partial representation of the inequality in well-being among individuals, households, counties, and other communities. At a minimum, we need to consider other crucial measures such as consumption, leisure, and health. The reason for looking at other measures is that the inequality in income per se might not translate directly into a deeper and more important concept of inequality in welfare terms. For example, Jones and Klenow state that if we were to look at GDP only, France’s living standards would be only about 60 percent those of the United States. However, once we factor in leisure and life expectancy, that figure gets closer to 85 percent, a substantial change. In essence, monetary income, and therefore income inequality, is only a part of what individuals and countries value. We apply exactly this concept to highlight the substantial amount of health inequality across counties in the United States.

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Posted by Blog Author at 7:00 AM in Labor Economics | Permalink | Comments (2)

November 03, 2015

Exploring Differences in Unemployment Risk

Exploring Differences in Unemployment Risk

The risk of becoming unemployed varies substantially across different groups within the labor market. Although the “headline” unemployment rate draws the most attention from the news media and policymakers, there is rich heterogeneity underlying this overall measure. We delve into the data to describe how unemployment and job loss risk vary with demographics (gender, age, and race), skill (educational attainment), and job characteristics (occupation and earnings).

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Posted by Blog Author at 7:00 AM in Labor Economics, Macroecon | Permalink | Comments (0)

November 02, 2015

Understanding Earnings Dispersion


How much someone earns is an important determinant of many significant decisions over the course of a lifetime. Therefore, understanding how and why earnings are dispersed across individuals is central to understanding dispersion in a wide range of areas such as durable and non-durable consumption expenditures, debt, hours worked, and even health. Drawing on a recent New York Fed staff report "What Do Data on Millions of U.S. Workers Reveal about Life-Cycle Earnings Risks?", this blog post investigates the nature of earnings inequality over a lifetime.  It finds that earnings are subject to significant downside risk and that such risk contributes substantially to overall earnings dispersion.

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Posted by Blog Author at 7:02 AM in Labor Economics, Macroecon | Permalink | Comments (0)

Beyond the Macroeconomy


The Federal Reserve’s statutory mission from Congress is to achieve maximum employment and price stability for the country as a whole. In line with this dual mandate, economists at the New York Fed monitor conditions in the “aggregate” economy on a day-to-day basis. But in addition, they have been doing a substantial amount of work to understand the differences in economic experiences across individuals, households, and regions. This blog series will examine our economists’ findings on how labor, housing, and health outcomes vary for different groups. A brief summary of the posts in the series follows:

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Posted by Blog Author at 7:00 AM in Labor Economics, Macroecon | Permalink | Comments (0)

September 02, 2015

Searching for Higher Wages

Since the peak of the recession, the unemployment rate has fallen by almost 5 percentage points, and observers continue to focus on whether and when this decline will lead to robust wage growth. Typically, in the wake of such a decline, real wages grow since there is more competition for workers among potential employers. While this relationship has historically been quite informative, real wage growth more recently has not been commensurate with observed declines in the unemployment rate.

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Posted by Blog Author at 7:00 AM in Labor Economics | Permalink | Comments (3)

August 26, 2015

Mind the Gap: Assessing Labor Market Slack


Indicators of labor market slack enable economists to judge pressures on wages and prices. Direct measures of slack, however, are not available and must be constructed. Here, we build on our previous work using the employment-to-population (E/P) ratio and develop an updated measure of labor market slack based on the behavior of labor compensation. Our measure indicates that roughly 90 percent of the labor gap that opened up following the recession has been closed.

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Posted by Blog Author at 7:00 AM in Labor Economics, Macroecon | Permalink | Comments (2)

August 25, 2015

Incentive Pay and Gender Compensation Gaps for Top Executives


The persistence of a gender gap in wages is shaping the debate over women’s equality in the workplace and underscores the challenge facing policymakers as they consider their potential role in closing it. While the disparity affects females at all income levels, women in professional and managerial occupations tend to experience greater gender-pay differences than those in working-class jobs. The rise in the use of incentive pay, which has been linked to the growth of income inequality (Lemieux, MacLeod, and Parent), might have contributed to the gender gap in earnings (Albanesi and Olivetti). In this post, which is based on our related New York Fed staff report, we document three new facts about gender differences in the structure of executive compensation.

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Posted by Blog Author at 7:00 AM in Labor Economics | Permalink | Comments (2)

August 05, 2015

When Women Out-Earn Men


We often hear that women earn “77 cents on the dollar” compared with men. However, the gender pay gap among recent college graduates is actually much smaller than this figure suggests. We estimate that among recent college graduates, women earn roughly 97 cents on the dollar compared with men who have the same college major and perform the same jobs. Moreover, what may be surprising is that at the start of their careers, women actually out-earn men by a substantial margin for a number of college majors. However, our analysis shows that as workers approach mid-career, the wage premium that young women enjoy in these majors completely disappears, and males earn a more substantial premium in nearly every major. We discuss some of the possible reasons why the gender wage gap widens as workers progress through their careers.

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Posted by Blog Author at 7:00 AM in Labor Economics | Permalink | Comments (2)

July 13, 2015

The Survey of Consumer Expectations Turns Two!

Survey of Consumer Expectations

The Federal Reserve Bank of New York’s Survey of Consumer Expectations (SCE) turned two years old in June. In this post, we review some of the key findings from the first two years of the survey’s history, highlighting the most noteworthy trends revealed in the data.

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Posted by Blog Author at 11:00 AM in Household Finance, Labor Economics | Permalink | Comments (0)

June 03, 2015

Does Business Training Work?


Leaders of both developing and advanced economies believe that encouraging the development of small businesses will lead to job creation and economic growth. As such, many governments and nongovernmental organizations (NGO) promote the use of business training programs to help grow small businesses. For example, an  international business literacy program called Start and Improve Your Business has been introduced in more than one hundred countries and reached more than 4.5 million potential and existing entrepreneurs between 2003 and 2010 according to the International Labour Organization. Similar programs have been undertaken also in the United States. The Small Business Administration, among many other programs, supports a network of Small Business Development Centers that provide free and low-cost business consulting and training. In this post, we show that the expected benefits of these interventions may vary widely between developed and developing economies.

Continue reading "Does Business Training Work?" »

Posted by Blog Author at 7:00 AM in Labor Economics | Permalink | Comments (0)
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