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Big gaps in life expectancy by gender in former USSR countries
26 Sep 2015 Leave a comment
in economics, labour economics, labour supply Tags: life expectancies
@nzlabour @FairnessNZ My first Parliamentary submission – opposing regulation of zero hours contracts
25 Sep 2015 1 Comment
in applied price theory, labour economics, labour supply, occupational choice, personnel economics, politics - New Zealand Tags: employment law, employment protection law, employment regulation, fixed costs of employment, Leftover Left, The fatal conceit, unintended consequences, zero hours contracts
This Labour Party link made it very easy for me to submit to the Select Committee of Parliament to oppose the Bill on regulating zero hours contracts. I oppose the Bill for the exact opposite reasons that the Labour Party opposes the Bill.

I encourage others to make a submission to Parliament as well opposing this draft amendment that will lower the wages of workers. My submission is as follows:
I do not support the proposed changes to the legislation governing zero hour contracts in the Employment Standards Legislation Bill. There should be no regulation of zero hours contracts.
Zero hours contracts is creative destruction at work in the labour market, sweeping away obsolete working time arrangements, mostly in the retail services sector. Plenty of new ways of working have emerged in recent years that include the proliferation of part-time work, temporary workers, leased workers, working from home, teleworking and sub-contracting. Employment laws were built on the now decaying assumption that workers had career-long, stable relationships with single employers.
Advance notice of work schedules is always known only to a minority of temporary and permanent employees in New Zealand, and there’s not much difference between that advance notice between temporary and permanent employees.
Critics overplay their hand if they suggest that somehow workers are very much disadvantaged and employers are holding all the cards. Job turnover and recruitment problems are a serious cost to a business. Workers will not sign zero hours contracts if they are not to their advantage.
Unless labour markets are highly uncompetitive with employers having massive power over employees, employers should have to pay a wage premium if zero-hour contracts are a hassle for workers.
The fixed costs of employment are such that you shouldn’t expect zero-hour contracts: you’ll typically do better with one 40-hour worker over two 20-hour workers because of these costs. Zero hour contracts would be most likely in jobs with low recruitment costs and where specialised training needs are low. Workers with low fixed costs of working will move into the zero-hour sector while those with higher fixed costs would prefer lower hourly rates but more guaranteed hours. Again, read lower here as meaning relative to what they could elsewhere earn.
Unless we have a good idea about why firms are moving to zero hours contracts, which we don’t, and why employees sign these contracts rather than work for other employers who offer more regular hours, meddling in these novel working time arrangements is risky.
Employers must pay a wage premium to induce in workers to sign zero hours contracts. This Bill seeks to deny workers the right to seek higher wages.
Feel free to use the above text as the basis for your own submission to Parliament.
Young people run faster, but seniors know the shortcuts
24 Sep 2015 Leave a comment
in health economics, human capital, labour supply
Will the standard policy response to a labour market crisis reduce inequality?
24 Sep 2015 2 Comments
in applied price theory, applied welfare economics, economic history, economics of bureaucracy, economics of education, human capital, labour economics, occupational choice, poverty and inequality, Public Choice Tags: assortative mating, asymmetric marriage premium, College premium, economics of higher education, economics of schooling, economics of universities, graduate premium, marriage and divorce, power couples, university premium
Whenever there is a crisis in the labour market, the standard policy response is send them on a course. That makes you look like you care and by the time they graduate the problem will probably fixed itself. Most problems do. I found this bureaucratic response to labour market crises to repeat itself over and over again while working in the bureaucracy.
Inequality – What can be done?
Stefan Thewissen reviews Tony Atkinson’s book
bit.ly/1h0KDDF http://t.co/KiiGgFQJau—
Max Roser (@MaxCRoser) September 27, 2015
The standard policy response to a normal problem in the labour market is send them on a course. Clever geeks as yourself sitting at your desk as a policy analysis or minister did well at university. You assume others will as well including those who have neither the ability or aptitude to succeed in education. Lowering university tuition fees and easing the terms of student loans simply means that those who do well at university will not have to pay back as much to the government. People who succeed at university already have above average IQs so they already had a good head start in life.
Will more education decrease inequality? A simulation provided an answer. nyti.ms/1xw5m9W http://t.co/paQp19BEWc—
The Upshot (@UpshotNYT) March 31, 2015
The standard solution to growing inequality is to send people on a course. Trouble is that just make smart people wealthier without helping the not so smart and increases the chance of smart men and women marrying off together. This increases the inequality between power couples and the rest.
Are the rich getting richer in the USA?
24 Sep 2015 Leave a comment
in economic history, politics - USA, poverty and inequality Tags: Occupy Wall Street, top 1%
https://twitter.com/Mark_J_Perry/status/646427815693434880/photo/1
We hear a lot about rising income inequality but Census data show it's been stable for 20 yrs
aei.org/publication/th… http://t.co/Cb2u0j97fv—
Mark J. Perry (@Mark_J_Perry) September 22, 2015
The Moynihan Report revisited
22 Sep 2015 Leave a comment
in economic history, labour economics, politics - USA Tags: economics of families, marriage and divorce, Moynihan report, single mothers, single parents
Stigler on economics as a big tent @RusselNorman @NZGreens @GreenpeaceNZ @Mark_J_Perry
21 Sep 2015 1 Comment

Marc Wilson, David Seymour, MP and should students harden up
21 Sep 2015 2 Comments
in economics of education, health and safety, health economics, occupational choice Tags: economics of personality traits
Professor Marc Wilson is most upset by David Seymour’s suggestion that students who are under stress should harden up. Seymour was misquoted, but that is not so important for the purpose of today. What Wilson said in a rambling op-ed more about his gripes at student loans than student mental health was:
So, if David Seymour did advise students and, by extension anyone, experiencing the burdens of stress-related mental health issues to “harden up”, I think that’s reprehensible. There might have been a time when university was all about carousing the week long at taxpayers’ expense, and cramming at the end of the year, but that time has long gone.
One of the purposes of undergraduate study is to work out if you have chosen the right vocation. In the very beginning of the first year of medicine, new students are confronted with blood and dead bodies and all sorts of things that are not for the squeamish.
Another thing that is not for any prospective medical student is an inability to cope with stress. Doctors have lives in their hands and have to manage that calmly. New police officers are in the same position. They have to cope with a lot of death and misery. They need to learn quickly whether they can even hope to do so.
Doctors must cope with tremendous stress and still succeed. My father was a doctor. He was a changed man when he retired such was the burden of stress lifted from his shoulders. My brother and sister-in-law are also doctors as is a nephew. My late sister was a nurse. I have a nephew who is a police constable.
Some years ago I saw a program about the sports preferences of doctors. Those doctors that like extreme sports happened to work in emergency departments of hospitals. Those doctors who were somewhat overweight and rather disinterested in sport especially dangerous sports ended up as paediatricians.
I always remember an old flat mate of mine in Canberra whose father was a surgeon. He had no illusions about what was required of surgeons. They had to have tremendous arrogance and someone else to tell them what to do. If you are going to open up someone with a knife you must have tremendous self-confidence and ability to cope with stress. It is helpful if you actually know what you are doing as well but the key thing is a steady hand and cool head.
Many professions are high stress occupations. Anyone choosing to enter a high stress profession must find out soon whether they can cope with the demands of other people’s lives in their hands.
You do students no favours by sheltering him from the fact that they have chosen a higher stress occupation. If a medical student cannot cope with exam stress, you do worry about their ability to cope with someone’s life in their hands. That will be every day when they do their residency in emergency departments in their first year after leaving university. Better find out quickly. New lawyers work long hours too.
In my first year at university, I used to look at the first year medical students and worry that my life will be in some of their hands should I show up at a Tasmanian emergency room in about six years or so.
Personality traits including conscientiousness and emotional stability have important influences on occupational choice:
High Openness is strongly over-represented in creative, theoretical fields such as writing, the arts, and pure science, and under-represented in practical, detail-oriented fields such as business, police work, and manual labour. (Myers and McCaulley 1985, pp.246-8).
High Extraversion is over-represented in people-oriented fields like sales and business, and under-represented in fields like accounting and library work. (Myers and McCaulley 1985, pp.244-6). High Agreeableness is over-represented in “caring” fields like teaching, nursing, religion, and counselling, and under-represented in pure science, engineering, and law. (Briggs Myers and McCaulley 1985, pp.248-50). Individuals studying or working in fields atypical for their personality are also markedly more likely to drop out or switch occupations. (Briggs Myers and Myers 1993)…
Neuroticism indexes the propensity to experience negative emotions like anxiety, anger, and depression. Persons low in Neuroticism rarely experience such feelings, while persons high in Neuroticism experience them frequently. Neuroticism is also associated with hard-to-control cravings for food, drugs, and other forms of consumption with immediate benefits but long-run costs. (Costa and Widiger 1994; Costa and McCrae 1992)
Much of my diabetes management is about quite frankly hardening up. Do not give in to the temptation of sweet things. Moderate your diet; get some more exercise. It is about acquiring skills and inner strength you previously did not have but for the diagnosis of diabetes. I lost 18 kg as a result.
The dangerous left-wing bias of economists strikes again
21 Sep 2015 2 Comments
in applied price theory, budget deficits, business cycles, economics of regulation, history of economic thought, occupational choice, politics - USA
The left-wing bias of economists must be taken into account in public policy-making. Any suggestions to regulate the economy, spend our way out of a recession, increase the top tax rate and so on must be discounted for that well-known but little publicised political bias.

Source: Economists Aren’t As Nonpartisan As We Think | FiveThirtyEight
As is not well-known enough, Cardiff and Klein (2005) used voter registration data to rank disciplines at Californian Ivy League universities by Democrat to Republican ratios. Economics is the most conservative social science, with a Democrat to Republican ratio of a mere 2.8 to 1. This can be contrasted with sociology (44 to 1), political science (6.5 to 1) and anthropology (10.5 to 1). 40% of Americans are Democrats, 32% are independents with the balance Republicans.

Zubin Jelveh, Bruce Kogut, and Suresh Naidu confirmed that bias: that the typical economist is a moderate Democrat. They found a 60–40 liberal conservative bias
Jelveh, Kogut, and Naidu also reminded, as many have before them that economics is the most politically diverse of academic professions. Sociology is a notorious left-wing echo chamber as an example. Their most likely view of Jeremy Corbyn is he is a bit of a Tory. Oddly enough, sociologists are the first to point the finger at economists for political bias.

Jelveh, Kogut, and Naidu correlated political donations of more than $200 in the Federal Elections Commission database with the language used in 18,000 journal articles back to the 1970s.

More interestingly, they correlated political bias with the estimates of quantitative effects such as the top tax rate and its impact on labour supply and investment:
We found a (significant) correlation when we compared the ideologies of authors with the numerical results in their papers. That means that a left-leaning economist is more likely to report numerical results aligned with liberal ideology (and the same is true for right-leaning economists and conservative ideology)… liberals think the fiscal multiplier is high, meaning the government can improve economic growth by increasing spending, while conservatives believe the multiplier is close to zero or negative.
They are not suggesting a rigging of the results. Economists tend to sort into the fields that suit their ideologies:
It’s more likely that these correlations are driven by research areas and the methodologies employed by economists of differing political stripe. Economics involves both methodological and normative judgments, and it is difficult to imagine that any social science could completely erase correlations between these two… macroeconomists and financial economists are more right-leaning on average while labour economists tend to be left-leaning. Economists at business schools, no matter their specialty, lean conservative. Apparently, there is “political sorting” in the academic labour market.
Before you start writing out the indictment that economic policy and the global financial crisis is the product of a vast left-wing conspiracy within the economics profession you should remember the wise words of George Stigler.
Stigler argued that ideas about economic reform needed to wait for a market. He contended that economists exert a minor and scarcely detectable independent influence on the societies in which they live. As is well known, Stigler in the 1970s toasted Milton Friedman at a dinner in his honour by saying:
Milton, if you hadn’t been born, it wouldn’t have made any difference.
Stigler said that if Richard Cobden had spoken only Yiddish, and with a stammer, and Robert Peel had been a narrow, stupid man, England would have still have repealed the Corn Laws in the 1840s. England would still have moved towards free trade in grain as its agricultural classes declined and its manufacturing and commercial classes grew in the 1840s onwards because of the industrial revolution.

As Stigler noted, when their day comes, economists seem to be the leaders of public opinion. But when the views of economists are not so congenial to the current requirements of special interest groups, these economists are left to be the writers of letters to the editor in provincial newspapers. These days, they would run an angry blog.
Why did married couples get a pass on the great wage stagnation and the ravages of the top 1%?
20 Sep 2015 Leave a comment
in economics of love and marriage, labour economics, law and economics, poverty and inequality Tags: asymmetric marriage premium, economics of fertility, female labour force participation, male labour force participation, marriage and divorce, maternal labour force participation, single mothers, single parents
Marriage used to be a pairing of opposites: Men would work for pay and women would work at home. But in the second half of the 20th century, women flooded the labour force, raising their participation rate from 32 percent, in 1950, to nearly 60 percent in the last decade. As women closed the education gap, the very nature of marriage has changed. It has slowly become an arrangement pairing similarly rich and educated people. Ambitious workaholics used to seek partners who were happy to take care of the house. Today, they’re more likely to seek another ambitious workaholic.




The rich and educated are more likely to marry, to marry each other, and to produce rich and educated children. But this virtual cycle turns vicious for the poor.
Source: How America’s Marriage Crisis Makes Income Inequality So Much Worse – The Atlantic
Hans Rosling’s "Don’t Panic – The Truth About Population"
20 Sep 2015 Leave a comment
in development economics, economic growth, economic history, human capital, labour economics, labour supply, macroeconomics, population economics Tags: endogenous growth theory, population bomb, The Great Fact
@RichardvReeves Why did women get a pass on the great wage stagnation and exploitation by the top 1%?
19 Sep 2015 1 Comment
in discrimination, econometerics, economic history, gender, human capital, labour economics, labour supply, poverty and inequality Tags: female labour force participation, gender wage gap, male labour force participation, middle class stagnation, middle-class stand nation, wage stagnation
Few labour markets statistics make much sense unless broken down by gender.
Women working full-time, year-round jobs earned 78.6% of what similar men did in 2014 on.wsj.com/1KlsIC8 http://t.co/amouJSkPMr—
Real Time Economics (@WSJecon) September 19, 2015
Wages growth is no exception with female wages growth quite good for a long period of time after the 1970s – a period in which male earnings stagnated.
The beginning of male wage stagnation seemed to coincide with the closing of the gender wage gap.
U.S. wage growth doesn't look as weak when you account for benefit costs covered by employers on.wsj.com/1JJ2EmV http://t.co/s0tJutTjBy—
Nick Timiraos (@NickTimiraos) July 06, 2015
Presumably if men were previously profiting from patriarchy, that should have some implications for future wage growth and promotions for men as women catch up.
Presumably if men were previously profiting from patriarchy, that should have some implications for future wage growth for men as women catch up. Men lost the wage premium they previously earned from the sex discrimination directly in hiring, wage setting and promotions and investing in more education because they expected to be discriminated favourably at the expense of women.
Not surprisingly the convergence in the male-female wage ratios started in the 1970s which was the decade that male wage stagnation started.

The gender wage gap started converging again also pretty much in lockstep with the top 1% starting to grab higher and higher proportions of income.
Source: Alvaredo, Facundo, Anthony B. Atkinson, Thomas Piketty and Emmanuel Saez, The World Top Incomes Database.
The biggest #gendergap of them all
19 Sep 2015 Leave a comment
in discrimination, economic history, gender, health economics, labour economics Tags: female life expectancy, gender gap, life expectancies, male life expectancy, reversing gender gap
https://twitter.com/ONS/status/641642361664237569/photo/1
Explore the changing gap between male & female life expectancy over time ow.ly/RXWfC http://t.co/OjZuSlcmOI—
(@ONS) September 09, 2015




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