Day: November 19, 2014

Women graduates increasingly put their partner’s career first after they graduate | Daily Mail Online

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Women are increasingly putting their husband’s career before their own, a controversial new study of Harvard Business School graduates has found.

It canvassed over 25,000 male and female students, and found 40 percent of Gen X and boomer women said their spouses’ careers took priority over theirs.

The researchers also said only about 20 percent of them had planned on their careers taking a back seat when they graduated.

This gender gap  found by Robin Ely, Colleen Ammerman and Pamela Stone can be better explained by the marriage market combined with assortative mating.

1. Harvard business graduates are likely to marry each other and form power couples.

2. There tends to be an age gap between men and women in long-term relationships and marriages of say two years.

This two year age gap means that the husband as two additional years of work experience and career advancement. This is highly likely to translate into higher pay and more immediate promotional prospects.

Maximising household income would imply that the member of the household with a higher income, and greater immediate promotional prospects stay in the workforce.

It is entirely possible that women to anticipate this situation both in their subject choices and career ambitions.

Claudia Goldin found that the wage gap between male and female Harvard graduates disappears in the presence of one confounding factor.

That confounding factor is obvious: the male in the relationship earns less. When this is so, Goldin found that the female in the relationship earns pretty much as do similar male Harvard graduates, except for the fact that they work less hours per week:

We identify three proximate factors that can explain the large and rising gender gap in earnings: a modest male advantage in training prior to MBA graduation combined with rising labour market returns to such training with post-MBA experience; gender differences in career interruptions combined with large earnings losses associated with any career interruption (of six or more months); and growing gender differences in weekly hours worked with years since MBA.

Differential changes by sex in labour market activity in the period surrounding a first birth play a key role in this process. The presence of children is associated with less accumulated job experience, more career interruptions, shorter work hours, and substantial earnings declines for female but not for male MBAs.

The one exception is that an adverse impact of children on employment and earnings is not found for female MBAs with lower-earning husbands.

This sociological evidence reported in the Daily Mail is entirely consistent with the choice hypothesis and equalising differentials as the explanation for the gender wage gap. As Solomon Polachek explains:

At least in the past, getting married and having children meant one thing for men and another thing for women. Because women typically bear the brunt of child-rearing, married men with children work more over their lives than married women.

This division of labour is exacerbated by the extent to which married women are, on average, younger and less educated than their husbands.

This pattern of earnings behaviour and human capital and career investment will persist  until women start pairing off with men who are the same age or younger than them.

via Women graduates increasingly put their partner’s career first after they graduate | Daily Mail Online.

Global warming has paused for 19 years

Professor Ross McKitrick from the University of Guelph in Canada studied land and ocean temperatures since 1850. He compared this to satellite data from 1979 to 2014. By plotting trends in this data, he has concluded that global warming has been on pause for 19 years (illustrated)

via ‘Global warming has been on pause for 19 years’: Study reveals Earth’s temperature has remained almost CONSTANT since 1995 | Daily Mail Online.

“The Rise and Fall of General Laws of Capitalism,” D. Acemoglu & J. Robinson (2014)

A Fine Theorem

If there is one general economic law, it is that every economist worth their salt is obligated to put out twenty pages responding to Piketty’s Capital. An essay by Acemoglu and Robinson on this topic, though, is certainly worth reading. They present three particularly compelling arguments. First, in a series of appendices, they follow Debraj Ray, Krusell and Smith and others in trying to clarify exactly what Piketty is trying to say, theoretically. Second, they show that it is basically impossible to find any effect of the famed r-g on top inequality in statistical data. Third, they claim that institutional features are much more relevant to the impact of economic changes on societal outcomes, using South Africa and Sweden as examples. Let’s tackle these in turn.

First, the theory. It has been noted before that Piketty is, despite beginning his career as a very capable economist theorist (hired…

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Great, Greater, Greatest – Three Finnish Depressions

The Market Monetarist

Brad DeLong has suggested that we rename the Great Recession the GreatER Depression in Europe as the crisis in terms of real GDP lose now is bigger in Europe than it was it during the Great Depression.

Surely it is a very simplified measure just to look at the development in the level of real GDP and surely the present socio-economic situation in Europe cannot be compared directly to the economic hardship during the 1930s. That said, I do believe that there are important lessons to be learned by comparing the two periods.

In my post from Friday – Italy’s Greater Depression – Eerie memories of the 1930s – I inspired by the recent political unrest in Italy compared the development in real GDP in Italy during the recent crisis with the development in the 1920s and 1930s.

The graph in that blog post showed two things. First, Italy’s real…

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The Son Becomes The Father

JayMan's Blog

Source - http://www.graciemag.com/2012/05/jiu-jitsu-from-father-to-son/A vigorous discussion has been triggered by the release of Gregory Clark’s The Son Also Rises: Surnames and the History of Social Mobility. In this book, Clark details his work which shows a large transmission of status from generation to generation, all across the world, going back centuries. The discussion has raged on the mode of this transmission. How does it occur? Clark found that when you look at surnames, which trace paternal lineages, you find that the status of families today is related to their status centuries ago. That is, surnames associated with high status in the past are over-represented among high status individuals today, and vice versa. This pattern holds across much of the world, from England, to Sweden, to Japan, to Korea, to China, to Chile. The pattern goes back centuries – Normans surnames are still overrepresented among the English elite. The descendants of the samurai…

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If 97% of Scientists Say Global Warming is Real, 100% Say It Has Nearly Stopped

Watts Up With That?

John Cook’s methodology proves that there is a “pause consensus”.

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Guest essay by Paul C. “Chip” Knappenberger and Patrick J. Michaels, Center for the Study of Science, Cato Institute

The central premise of “global warming” is that human greenhouse-gas emissions will lead to a rise in the earth’s average surface temperature, and that as emissions continue to increase (a result of population growth and the desire to improve public health and welfare through increased energy availability), global average temperature will rise ever faster, that is, accelerate.

The U.N.’s Intergovernmental Panel on Climate Change (IPCC), back in 2007, claimed the acceleration was happening. This is a central part of both their global warming meme and the notion that it will lead to all sorts of negative consequences (and few, if any, positive ones).

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Figure 1. Global average surface temperature history with trends through various periods emphasized by the IPCC to bolster…

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