A Decade-long Increase in Political Independents
17 May 2015 Leave a comment
in politics - USA Tags: swinging voters
99% of robots agree with Robert Reich on the minimum wage
17 May 2015 Leave a comment
in macroeconomics, minimum wage, politics - USA Tags: 2016 presidential election, economics fallacies, expressive voting, quackery, rational irrationality, Robert Reich
The main drivers of child poverty
15 May 2015 Leave a comment
in applied welfare economics, economics of love and marriage, gender, labour economics, labour supply, occupational choice, politics - Australia, politics - New Zealand, politics - USA, population economics, welfare reform Tags: child poverty, economics of the family, family poverty, marriage and divorce, single mothers, single parents
CHART: Black Illegitimacy Rate Went from < 20% in 1950 to 75.2% in 2010. Has Obama ever mentioned that? http://t.co/1UBUQ5aLRi—
Mark J. Perry (@Mark_J_Perry) May 12, 2015
Quotation of the Day from Charles Murray http://t.co/Y8W6xGjRPO—
Mark J. Perry (@Mark_J_Perry) May 12, 2015
Urban planners are confident souls
15 May 2015 Leave a comment
in development economics, economics of regulation, environmental economics, growth miracles, politics - Australia, politics - New Zealand, politics - USA, urban economics Tags: green rent seeking, housing affordability The fatal conceit, land use regulation, offsetting behaviour, RMA, The pretence to knowledge, unintended consequences, urban planning, zoning
Health spending has been slow for a few years now
15 May 2015 Leave a comment
in health economics, politics - Australia, politics - New Zealand, politics - USA Tags: public health expenditure, welfare state
Further evidence that street politics is counter-productive
14 May 2015 Leave a comment
in constitutional political economy, politics - Australia, politics - New Zealand, politics - USA, Public Choice Tags: activists, civil disobedience, Leftover Left, protesters, street politics
Public disorder and rioting by a large leads to a law and order response among the public and a hardening of social attitudes against whatever the desired social reform might be when it is tainted by civil disorder.
The Left, the Green Left and the watermelons in particular want to believe that street protests change things. They have to validate their youthful offences against public order.
Sadly, no; sadly for them but not for the law-abiding rest of us who resolve our differences by trying to persuade each other and elections.
The law-abiding rest of us believe in democratic equality. Your vote counts as much as mine in a democracy with free speech. The only way you can change my vote is by free speech, not by public disorder, threats and intimidation and taking the law into your own hands.
Public confidence in the police in America
14 May 2015 Leave a comment
in economics of bureaucracy, economics of crime, politics - USA Tags: crime and punishment, law and order, police, voter demographics
How motherhood in America has changed
14 May 2015 Leave a comment
in discrimination, economic history, gender, job search and matching, labour economics, labour supply, politics - USA Tags: female labour force participation
How motherhood in America has changed pewrsr.ch/1kRRCey http://t.co/9lTNrzDlSJ—
PewResearch FactTank (@FactTank) May 10, 2015
Does tax reform lead to lower taxes?
14 May 2015 Leave a comment
in politics - Australia, politics - New Zealand, politics - USA, public economics, taxation Tags: efficient taxes, tax reform
Why is the gender gap so large and the glass ceiling so thick in Sweden?
14 May 2015 1 Comment
in discrimination, economics of love and marriage, gender, human capital, labour economics, occupational choice, politics - USA Tags: asymmetric marriage premium, do gooders, economics of families, gender wage gap, maternity leave, Sweden, The fatal conceit, unintended consequences
The gender wage gap is no better than the OECD average, despite generous maternity and paternity leave. What gives?
America: one day a year celebrating mothers, fathers.
Sweden: 480 days paid leave per child. vox.com/2014/5/12/5708… http://t.co/weFDrTj7Jb—
Ezra Klein (@ezraklein) May 11, 2015
Source: Closing the gender gap: Act now – http://dx.doi.org/10.1787/9789264179370-en
How big is the wage gap in your country? bit.ly/18o8icV #IWD2015 http://t.co/XTdntCRfDQ—
(@OECD) March 08, 2015
One important question is whether government policies are effective in reducing the gap. One such policy is family leave legislation designed to subsidize parents to stay home with new-born or newly adopted children.
One of the RLE articles shows that for high earners in Sweden there is a large difference between the wages earned by men and women (the so-called “glass ceiling”), which is present even before the first child is born. It increases after having children, even more so if parental leave taking is spread out.
These findings suggest that the availability of very long parental leave in Sweden may be responsible for the glass ceiling because of lower levels of human capital investment among women and employers’ responses by placing relatively few women in fast-track career positions. Thus, while this policy makes holding a job easier and more family-friendly, it may not be as effective as some might think in eradicating the gender gap.
via New volume on gender convergence in the labour market | IZA Newsroom.
Labour lost the working-class vote a long time ago
13 May 2015 Leave a comment
in economic history, politics - Australia, politics - New Zealand, politics - USA, Public Choice Tags: British Labour Party, Labour Party, Leftover Left, Twitter left, UK politics, withering away the of proletariat
Black and Hispanic poverty dropped by a third after the 1996 US welfare reforms
13 May 2015 Leave a comment
in labour economics, labour supply, politics - USA, poverty and inequality, welfare reform Tags: 1996 welfare reforms, child poverty, family poverty, welfare state
Just passed 40th anniversary of top climate scientists wanting to melt Arctic ice cap
13 May 2015 Leave a comment
in environmental economics, global warming, politics - Australia, politics - New Zealand, politics - USA Tags: climate alarmism, global cooling, global warming
We have just passed the 40th anniversary of our top climate scientists wanting to melt the Arctic ice cap. http://t.co/2ccvJgBREy—
Steve Goddard (@SteveSGoddard) May 12, 2015
Annual hours worked per working age American, German and French, 1950–2013
12 May 2015 Leave a comment
in applied price theory, economic growth, economic history, great depression, labour economics, labour supply, macroeconomics, politics - USA, Public Choice, public economics, taxation Tags: Edward Prescott, Euroclerosis, France, Germany, labour supply, Robert Lucas, taxation and labour supply
Figure 1 shows that Americans work the same hours per year pretty much the entire post-war period. By contrast, there is been a long decline in hours worked in Germany and France. The large drop in 1992 was German unification.
Figure 1: annual hours worked per working age American, German and French, 1950 – 2013
Source: OECD StatExtract and The Conference Board Total Economy Database™,January 2014, http://www.conference-board.org/data/economydatabase/
The long decline seemed to tally with the disproportionately sharp rise in the average tax rate on labour income, including social security contributions in France and Germany. When tax rates on labour income, including social security contributions stabilised in about 1980, hours worked stabilised in all countries.
Figure 2: average tax rate on labour income,USA, Germany and France, 1950 – 2013
Source: Source: Cara McDaniel.
Some pander to the great vacation theory of European labour supply. This is the hypothesis of a large increase in the preference for leisure in the European Union member states. That is, mass voluntary unemployment and mass voluntary reductions and labour supply by choice by Europeans. They just decided to work less.
This is not the first outing for the great vacation theory of labour supply. In the late 1970s, Modigliani dismissed the new classical explanation of Lucas and Rapping (1969) of the U.S. great depression in which the 1930s unemployment was voluntary unemployment – the great depression was just a great vacation – with the following remarks:
Sargent (1976) has attempted to remedy this fatal flaw by hypothesizing that the persistent and large fluctuations in unemployment reflect merely corresponding swings in the natural rate itself.
In other words, what happened to the U.S. in the 1930’s was a severe attack of contagious laziness!
I can only say that, despite Sargent’s ingenuity, neither I nor, I expect most others at least of the non-Monetarist persuasion, are quite ready yet. to turn over the field of economic fluctuations to the social psychologist!
As Prescott has pointed out, the USA in the Great Depression and France since the 1970s both had 30% drops in hours worked per adult. That is why Prescott refers to France’s economy as depressed. The reason for the depressed state of the French (and German) economies is taxes, according to Prescott:
Virtually all of the large differences between U.S. labour supply and those of Germany and France are due to differences in tax systems.
Europeans face higher tax rates than Americans, and European tax rates have risen significantly over the past several decades.
Countries with high tax rates devote less time to market work, but more time to home activities, such as cooking and cleaning. The European services sector is much smaller than in the USA.
Time use studies find that lower hours of market work in Europe is entirely offset by higher hours of home production, implying that Europeans do not enjoy more leisure than Americans despite the widespread impression that they do. Europeans did not work less. They worked more on activities that were not taxed.
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