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1. Labor Market Volatility and Worker Financial Wellbeing: An Occupational and Gender Perspective

Author:
Julie Yixia Cai
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
One emerging but underexplored factor that is likely to contribute to group racial earnings disparity is unstable work schedules. This is often detrimental for hourly workers when volatility is frequent, involuntary, or unanticipated. Using data from 2005-2022 monthly Current Population Survey and its panel design, this study follows a group of hourly workers across a four-month period to assess whether labor market volatility relates to their financial well-being, focusing on low-wage care and service occupations as well as female workers and workers of color. The findings are threefold: In general, during economic expansion periods, nonwhite workers often benefit more in terms of wage growth compared to their white counterparts. Second, net of other characteristics, on average, greater volatility is associated with lower earnings, and this is mostly driven by those holding jobs in low-wage service sectors and healthcare support roles. Last, the earnings consequences of volatility vary significantly by the type of low-wage jobs a worker holds and their gender and race, but this is only true when volatility happens in a job. Specifically, when working within the same employment spell, female workers, particularly those of color and those working in low-wage service and care jobs, earn significantly less when facing greater volatility than their male counterparts or those working in non-service, non-care occupations.
Topic:
Economics, Inequality, Finance, Labor Market, and Gender
Political Geography:
Global Focus and United States of America

2. The Diffusion of New Technologies

Author:
Aakash Kalyani, Nicholas Bloom, Marcela Carvalho, Tarek A. Hassan, Josh Lerner, and Ahmed Tahoun
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We identify phrases associated with novel technologies using textual analysis of patents, job postings, and earnings calls, enabling us to identify four stylized facts on the diffusion of jobs relating to new technologies. First, the development of economically impactful new technologies is geographically highly concentrated, more so even than overall patenting: 56% of the most economically impactful technologies come from just two U.S. locations, Silicon Valley and the Northeast Corridor. Second, as the technologies mature and the number of related jobs grows, hiring spreads geographically. But this process is very slow, taking around 50 years to disperse fully. Third, while initial hiring in new technologies is highly skill-biased, over time the mean skill level in new positions declines, drawing in an increasing number of lower-skilled workers. Finally, the geographic spread of hiring is slowest for higher-skilled positions, with the locations where new technologies were pioneered remaining the focus for the technology’s high-skill jobs for decades.
Topic:
Development, Economics, Science and Technology, Innovation, and Labor Market
Political Geography:
North America and United States of America

3. Chipping Away: Assessing and addressing the labor market gap facing the US semiconductor industry

Author:
Dan Martin and Hamilton Galloway
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
Thanks in large part to enactment of the landmark 2022 CHIPS and Science Act, a significant share of expected new chip manufacturing capacity and R&D is expected to be located in the US. We project the semiconductor industry’s US-based workforce will grow by nearly 115,000 jobs by 2030, from approximately 345,000 jobs today to approximately 460,000 jobs by the end of the decade. We estimate that roughly 67,000, or 58%, of these new jobs risk going unfilled at current degree completion rates. Of the unfilled jobs: 39% will be technicians, most of whom have two-year degrees or less; 35% will be computer scientists, or engineers with four-year degrees; and 26% will be engineers at the master’s or PhD level. For the US economy as a whole, we estimate that 3.85 million additional jobs in these three technical fields will be created by the end of 2030. Of those, 1.4 million jobs risk going unfilled unless the pipeline for such workers is expanded. To address the skills gap facing the broader economy and the semiconductor industry, we present three core recommendations to strengthen the US technical workforce: Strengthen support for regional partnerships and programs aimed at growing the pipeline for skilled technicians for semiconductor manufacturing and other advanced manufacturing sectors. Grow the domestic STEM pipeline for engineers and computer scientists vital to the semiconductor industry and other sectors that are critical to the future economy. Retain and attract more international advanced degree students within the US economy.
Topic:
Economics, Science and Technology, Regulation, Manufacturing, Labor Market, Workforce, and Semiconductors
Political Geography:
North America and United States of America

4. Bad news for the Fed from the Beveridge space

Author:
Olivier Blanchard, Alex Domash, and Lawrence H. Summers
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
The Federal Reserve seeks to cool an overheated US labor market to ease wage hikes and reduce job vacancies, without a painful spike in unemployment. But empirical evidence indicates that these goals have never been accomplished together and remain unlikely now. In fact, fighting inflation will require a reduction in job vacancies and also an increase in unemployment. The inverse relationship between job vacancies and unemployment is measured by the Beveridge curve, named after a British economist. Blanchard, Domash, and Summers find that the Fed’s hope that vacancies can be decreased without increasing unemployment flies in the face of historical empirical evidence. The current low unemployment rate and the very high vacancy-to-unemployment ratio suggest that the labor market is overheating and the natural unemployment rate has increased. It has increased about 1.3 percentage points from its pre-COVID level, implying the labor market is even more overheated than suggested by the current unemployment rate.
Topic:
Economy, Unemployment, and Labor Market
Political Geography:
North America and United States of America

5. Equity and Diversity in the Nation's Cyber Workforce: Policy Recommendations for Addressing Data Gaps

Author:
Irving Lachow
Publication Date:
04-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
U.S.-based businesses and government agencies face a shortage of between 350,000 and 600,000 cybersecurity professionals, and 56 percent of companies believe that their staffing shortfalls put them at moderate or extreme risk. Focusing on diversity, equity, and inclusion (DEI) can help organizations address that shortage by increasing the pool of available talent. Beyond the social good that comes with successful implementation of DEI policies, a 2018 McKinsey & Company report notes that organizations can also realize a positive impact on growth and performance. This is due to improved problem solving and idea generation: “Diverse teams have been shown to be more likely to radically innovate and anticipate shifts in consumer needs and consumption patterns—helping their companies to gain a competitive edge.” These benefits carry over to the cybersecurity realm. A diverse workforce can contribute to a better understanding of user behavior and the ever-evolving threat landscape. Additionally, diverse representation can help organizations identify and address implicit biases that may be impacting their ability to hire and retain talent, develop new products and services, and understand market demand across a broader demographic base. MITRE recently conducted a study, funded by the Hewlett Foundation, that examined the current state of data on the diversity of the nation’s cyber workforce. The results of that study point to a data gap that needs to be addressed
Topic:
Labor Issues, Diversity, Labor Market, Cyberspace, and Equity
Political Geography:
North America and United States of America

6. When Is Tinkering with Safety Net Programs Harmful to Beneficiaries?

Author:
Jeffrey Clemens and Michael J. Wither
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The U.S. safety net has many moving parts. Redistributive transfers are made in cash and in kind, often come through regulation, and are implemented by multiple levels of government. Arrangements related to health care and health insurance are particularly complicated, as low‐​income households must navigate eligibility for free care, Medicaid, subsidized coverage, and employer‐​provided coverage.
Topic:
Government, Economic Policy, Labor Market, and Safety Net
Political Geography:
North America and United States of America

7. Endogenous Growth, Skill Obsolescence and Fiscal Multipliers

Author:
Wolfgang Lechthaler and Mewael F. Tesfaselassie
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
We analyze the effects of government spending in a New-Keynesian model with search and matching frictions featuring endogenous growth through learning-by-doing and skill loss from longterm unemployment. We show that medium-run and long-run output and unemployment multipliers are much larger compared to the standard model that abstracts from endogenous growth and skill loss. In our model the aggregate effect of a temporary fiscal stimulus is amplified via the skill loss channel through lower training costs. Via the learning-by-doing channel, it leads to hysteresis in human capital accumulation and thereby output. These results hold for alternative forms of fiscal financing (lump-sumtax, distortionary tax and government debt) as well as alternative labor market institutions (US and Europe).
Topic:
Governance, Economic Growth, Economic Theory, and Labor Market
Political Geography:
North America and United States of America

8. An Emerging Opportunity for Recovery: “Modern Markets for All”

Author:
Wingham Rowan
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
The growth and modernization of online labour markets have often come at the expense of workers. The platforms that cater to the gig economy aim to maximize profits while undermining worker benefits. For example, some labour platforms have been known to extract up to 30 percent of their workers’ earnings. In this policy brief, Wingham Rowan discusses how to make labour markets more equitable through a collaborative effort between government agencies and tech companies to maximize growth, opportunity and inclusion, creating “modern markets for all.”
Topic:
Science and Technology, Income Inequality, Labor Market, and Public-Private Partnership
Political Geography:
North America and United States of America

9. Building Back Better: A National Jobs Strategy

Author:
Mary Alive McCarthy, Carl Van Horn, and Michael Prebil
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
The United States has a jobs problem. When the COVID-19 pandemic plunged the economy back into recession in early 2020, it laid bare a fragile and profoundly inequitable labor market. In the absence of a robust and coordinated recovery strategy focused on increasing the supply of good jobs, the same labor market pathologies that plagued the last recovery will re-emerge: the long-term unemployed will struggle to land jobs and many will give up; private sector job growth will be slow and uneven; many new jobs will be worse than those they replace; unemployment among Black and Latinx workers will remain elevated; and income and wealth gaps will widen. This recovery must be different. The Biden-Harris administration has an historic opportunity to lay the foundation for an economy built on good jobs, one that ensures the benefits of economic growth are broadly and fairly shared This publication provides a set of concrete recommendations to help guide an all-of-government jobs strategy, including three goals to guide a national jobs agenda, a suite of distinct but reinforcing strategies to achieve them, and a framework for coordinating activities across government.
Topic:
Security, National Security, Infrastructure, Governance, Job Creation, and Labor Market
Political Geography:
North America and United States of America

10. Navigating the Future of Work: The Role of Immigrant-Origin Workers in the Changing U.S. Economy

Author:
Julia Gelatt, Jeanne Batalova, and Randy Capps
Publication Date:
10-2020
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
Immigrant-origin workers—that is, immigrants and their U.S.-born children—have been the main drivers of U.S. workforce growth in recent years. They were responsible for 83 percent of labor force growth between 2010 and 2018, at which point they made up 28 percent of all U.S. workers. Looking ahead, all growth in the working-age population is projected to come from immigrant-origin adults through 2035. Yet research on the future of work in the United States has largely overlooked this important segment of the workforce. This report examines the jobs held by immigrant-origin workers and third/higher-generation workers (those born in the United States to U.S.-born parents), and which of these jobs are likely to grow versus decline due to automation, offshoring, and other trends. It also considers the implications of the changing mix of jobs in the U.S. economy for both workforce development and immigration policy. Among the findings of this data analysis: Similar shares of Immigrant-origin and third/higher-generation workers held “jobs of the future” (22 percent versus 24 percent) and declining jobs (26 percent versus 29 percent) in 2018. Latinos—both those of immigrant origins and the third/higher generation—were less likely than workers in other major racial or ethnic groups to hold jobs of the future and more likely to hold declining jobs. Black immigrant-origin workers were overrepresented in jobs of the future in 2018, particularly in health care and health-care support, while third/higher-generation Black workers were more likely to hold declining jobs, such as office and administrative support occupations. This report is part of MPI’s multiyear Rethinking U.S. Immigration Policy initiative, which aims to generate a big-picture, evidence-driven vision for the role immigration can and should play in America’s future. To learn more about the initiative and read related research, check out the initiative’s home page.
Topic:
Education, Employment, Economy, Immigrants, Labor Market, and Workforce
Political Geography:
North America and United States of America