Eric Gould, 19 December 2018

Declining manufacturing jobs in the US has a disproportionate impact on less-educated workers. Given that the black population is less educated than the white population, this will have a larger effect on blacks relative to whites. This column uses US Census data to show that the decline has increased inequality both within black and white communities and between black and white communities. It has also widened racial gaps in income, employment, health, marriage, and family formation.

Dirk Hackbarth, Alejandro Rivera, Tak-Yuen Wong, 19 December 2018

For decades, academics and practitioners alike have argued that companies do not implement long-term strategies and that shareholders must cure the disease of short-termism to maximise shareholder value. This column examines the perils of short-termism in the context of investment policies and managers’ incentivisation. It finds that shareholder value maximisation for a typical S&P500 firm is not as straightforward as ‘no short-termism’, and depends on firm and investor characteristics.

Shelly Lundberg, Jenna Stearns, 18 December 2018

Although the share of women in top PhD-granting departments more than doubled between 1972 and 1993, this growth has stalled in recent years. This column reviews recent literature on women’s relative position in the discipline and assesses the evidence on barriers that female economists face in publishing, promotion, and tenure. It suggests that differentialassessment of men and women is one factor in explaining women’s failure to advance in economics and that continued progress toward equality in academic economics will require a concerted effort to remove opportunities for bias in the hiring and promotion processes.

Jing Cai, Yuyu Chen, Xuan Wang, 17 December 2018

R&D tax breaks are often offered to businesses to encourage innovation. This column uses evidence from a tax reform in China to study the relationship between tax enforcement and firm innovation. Lower taxes improve both the quantity and quality of firm innovation, and have a bigger impact on those firms that are either financially constrained or those that engage more in tax evasion. 

David Bloom, Mathew McKenna, Klaus Prettner, 17 December 2018

Future global employment needs are of central importance for policymakers. This column estimates that, based on growth in the working-age population, labour force participation rates, and unemployment, about three quarters of a billion jobs will need to be created in 2010–2030. It also discusses how automation will add to the number of jobs required.

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