New Zealand primary school teachers have experienced rapid wages growth by international standards
10 Jun 2015 Leave a comment
in economics of education, human capital, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA Tags: teachers pay
Almost 8 in 10 daughters raised by the lowest- earning men make more money per hour than their fathers did
08 Jun 2015 Leave a comment
in discrimination, economics of education, gender, human capital, labour economics, labour supply, occupational choice, poverty and inequality Tags: economic mobility, gender wage gap, reversing gender gap
The mind is actually the last to go?
07 Jun 2015 Leave a comment
in human capital, labour economics, labour supply, population economics Tags: ageing, ageing society, economics of physiology
Today’s daughters earn much more than their mothers
07 Jun 2015 Leave a comment
in discrimination, gender, human capital, labour economics, labour supply, occupational choice Tags: compensating differences, gender wage gap
In the late 1960s and early 1970s, slightly more than half of all mothers were in the labour force. These women worked, on average, 24 hours per week for a little more than $10 per hour.
Today, 85 percent of all daughters are employed, and they work 10 additional hours per week and earn $9 more per hour.
via Women’s Work: The Economic Mobility of Women Across a Generation.
Supply-side economics and the migration of inventors
07 Jun 2015 Leave a comment
in applied price theory, entrepreneurship, fiscal policy, human capital, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA Tags: economics of migration, taxation and the labour supply
#Braindrain is real, even quantifiable — as per NBER paper 21024. Geniuses don't tolerate extra taxes easily. http://t.co/HVP8uEFAfz—
Amity Shlaes (@AmityShlaes) June 07, 2015
The gender pay gap and motherhood
06 Jun 2015 Leave a comment
in discrimination, gender, human capital, labour economics, labour supply, occupational choice Tags: asymmetric marriage premium, gender pay gap, motherhood penalty
Why did the top 1% only pick on men when they increased inequality over recent decades?
06 Jun 2015 Leave a comment
in discrimination, gender, human capital, labour economics, labour supply, unions Tags: gender wage gap, middle class stagnation, reversing gender gap, superstar wages, superstars, top 1%, wage stagnation
Gender pay gap in corporate America twitter.com/BuzzFeedAndrew… http://t.co/AOFxcUQ8Rk—
Charts and Maps (@ChartsandMaps) April 12, 2015
Who among the top 1% and top 0.1% increased their share of income most between 1979 and 2005?
03 Jun 2015 Leave a comment
in economic history, entrepreneurship, financial economics, human capital, industrial organisation, labour economics, labour supply, occupational choice, survivor principle Tags: CEO pay, entrepreneurial alertness, Occupy Wall Street, separation of ownership and control, superstar wages, superstars, top 0.1%, top 1%, Twitter left
The members of the top 1% whose income increased the most between 1979 and 2005 were real estate professionals followed by financial professionals – see figure 1.
Figure 1: increase in share of national income (including capital gains) received by top 1% for each primary taxpayer occupation in top 1% between 1979 and 2005
Source: Jon Bakija, Adam Cole and Bradley T. Heim “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data”.
Figure 2 shows that the fastest-growing shares among the top 1% as in figure 1 are not necessarily the largest occupational group are those income earners. Moreover, their fortunes seem largely unrelated to each other.
Figure 2: Percentage of national income (including capital gains) received by top 1%, and each primary taxpayer occupation in top 1%
Source: Jon Bakija, Adam Cole and Bradley T. Heim “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data”.
The next members of the top 1% in terms of income growth were rather respectable group:professionals and scientists and arts, media and sports. The latter,arts, media and sports get a complete pass on their membership of the top 1% despite their great success in increasing their incomes since 1979 at the expense apparently on the bottom 99% if the Twitter Left is to be believed.
Figure 3: increase in share of national income (including capital gains) received by top 0.1% for each primary taxpayer occupation in top 0.1%between 1979 and 2005
Source: Jon Bakija, Adam Cole and Bradley T. Heim “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data”.
Arts, media and sports superstars are one of the fastest-growing members of the top 0.1% – see figure 3. Again, the arts, media and sports superstars get a complete pass on their membership of the top 0.1% from the Twitter Left. Most of the other occupations in the top 0.1% don’t strike me as anything other than working rich – see figure 3 and figure 4.
As with the top 1%, the top 0.1% of income earners are a mixed bag of occupations – see figure 4. Their fortunes are unrelated to each other terms of the forces driving there are increased incomes.
Figure 4: Percentage of national income (including capital gains) received by top 0.1%, and each primary taxpayer occupation in top 0.1%
Source: Jon Bakija, Adam Cole and Bradley T. Heim “Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data”.
Unemployment by educational level and degree level
02 Jun 2015 Leave a comment
in business cycles, economics of education, human capital, job search and matching, labour economics, labour supply, macroeconomics, occupational choice, unemployment Tags: education premium, graduate premium
Don't listen to naysayers. College is worth it, even for so-so students. nyti.ms/1JC1ZiN http://t.co/Wnr5BnwumM—
The Upshot (@UpshotNYT) April 24, 2015
How much of the top 0.1% are now working rich in the USA, 1916–2013, and Canada, 1946–2007
01 Jun 2015 Leave a comment
in economic history, entrepreneurship, human capital, industrial organisation, labour economics, labour supply, occupational choice, survivor principle Tags: Canada, CEO pay, creative destruction, entrepreneurial alertness, super-entrepreneurs, superstar wages, superstars, top 0.1%, top 1%, working rich
Piketty and Saez (2003) concluded that a substantial fraction of the rise in top incomes was due to surging top wage incomes. They concluded that top executives (the ‘working rich’) replaced top capital owners (the ‘rentiers’) at the top of the income hierarchy.
That conclusion still holds for both the USA and Canada. The largest portion of the top 0.1% in both countries have become those earning wages. The top 0.1% are top wage earners who work for their livings founding, building or directing businesses.
Figure 1: percentage of top 0.1% with wages, salaries, pensions or entrepreneurial incomes, USA, 1916 – 2013
Source: Alvaredo, Facundo, Anthony B. Atkinson, Thomas Piketty and Emmanuel Saez, The World Top Incomes Database.
Figure 2: percentage of top 0.1% with incomes from interest, dividends and rents, USA, 1916 – 2013
Source: Alvaredo, Facundo, Anthony B. Atkinson, Thomas Piketty and Emmanuel Saez, The World Top Incomes Database.
Figure 3: percentage of top 0.1% with wage salary and pension incomes, business incomes and professional incomes, Canada, 1946 – 2007
source : Alvaredo, Facundo, Anthony B. Atkinson, Thomas Piketty and Emmanuel Saez, The World Top Incomes Database.
Figure 4: percentage of top 0.1% with dividend, interest or investment incomes, Canada, 1946 – 2007
Source: Alvaredo, Facundo, Anthony B. Atkinson, Thomas Piketty and Emmanuel Saez, The World Top Incomes Database.
Pay is always net of human capital accumulation
31 May 2015 Leave a comment
in economics of education, human capital, labour economics, labour supply, minimum wage, occupational choice, poverty and inequality Tags: College premium, education premium, internships, on-the-job human capital
The reading comprehension level of State of the Union Addresses
29 May 2015 Leave a comment
in economics of education, economics of media and culture, human capital, politics - USA Tags: expressive voting, literacy levels, rational ignorance, rational irrationality
Utopia, you are standing in it! 
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