Economics Commons^™

Improving Economic Development Incentives, Timothy J. Bartik

Upjohn Institute Policy and Research Briefs

No abstract provided.

Economic Conditions: Updates On The National, State, And Regional Economies With A Look At 2018, Jim Robey

Presentations

No abstract provided.

Who Benefits From Economic Development Incentives? How Incentive Effects On Local Incomes And The Income Distribution Vary With Different Assumptions About Incentive Policy And The Local Economy, Timothy J. Bartik

Upjohn Institute Technical Reports

This report presents results from a simulation model that examines the effects of economic development incentives (e.g., tax incentives such as property tax abatements or job creation tax credits) provided to businesses by state and local governments in the United States. The model simulates effects of incentive policies on the incomes of local residents, both for different income types (e.g., labor income versus property income) and for different income quintiles, under different assumptions about the economy’s workings and public policy. Net benefits of incentives for local incomes are greater if the incentives have greater job-creation effects conditional on their effects …

Degrees Of Poverty: The Relationship Between Family Income Background And The Returns To Education, Timothy J. Bartik, Brad J. Hershbein

Upjohn Institute Working Papers

Drawing on the Panel Study of Income Dynamics, we document a startling empirical pattern: the career earnings premium from a four-year college degree (relative to a high school diploma) for persons from low-income backgrounds is considerably less than it is for those from higher-income backgrounds. For individuals whose family income in high school was above 1.85 times the poverty level, we estimate that career earnings for bachelor’s graduates are 136 percent higher than earnings for those whose education stopped at high school. However, for individuals whose family income during high school was below 1.85 times the poverty level, the career …

Understanding The Effects Of Legalizing Undocumented Immigrants, Joan Monras, Javier Vázquez-Grenno, Ferran Elias

Upjohn Institute Working Papers

This paper investigates the consequences of the legalization of around 600,000 immigrants by the unexpectedly elected Spanish government of Zapatero following the terrorist attacks of March 2004 (Garcia-Montalvo, 2011). Using detailed data from payroll-tax revenues, we estimate that each newly legalized immigrant increased local payroll-tax revenues by 4,189 euros on average. This estimate is only 55 percent of what we would have expected from the size of the influx of newly documented immigrants, which suggests that newly legalized immigrants probably earned lower wages than other workers and maybe affected the labor-market outcomes of those other workers. We estimate that the …

Understanding The Decline In Manufacturing Employment, Susan N. Houseman

Presentations

No abstract provided.

Unemployment Insurance Reform: Fixing A Broken System, Stephen A. Wandner Editor

Upjohn Press

The Unemployment Insurance (UI) system is a lasting piece of the Social Security Act which was enacted in 1935. But like most things that are over 80 years old, it occasionally needs maintenance to keep it operating smoothly while keeping up with the changing demands placed upon it. However, the UI system has been ignored by policymakers for decades and, say the authors, it is broken, out of date, and badly in need of repair.

Stephen A. Wandner pulls together a group of UI researchers, each with decades of experience, who describe the weaknesses in the current system and propose …

The Impacts Of China's Rise On The Pacific And The World, Wei-Chiao Huang Editor, Huizhong Zhou Editor

Upjohn Press

This book provides the perspectives of a group of noted China experts on how China’s economic expansion and internal reforms are impacting its neighbors in the Pacific region as well as the United States and the rest of the world.

Stem And The Local Economy: Do Regions Reap The Benefits Of A Stem-Educated Workforce?, Fran Stewart

Employment Research Newsletter

No abstract provided.

Race To The Bottom? Local Tax Break Competition And Business Location, Evan Mast

Employment Research Newsletter

No abstract provided.

A New Business Incentives Database, Timothy J. Bartik

Presentations

No abstract provided.

A New Business Incentives Database, Timothy J. Bartik

Presentations

No abstract provided.

A Comparative Analysis Of Unemployment Insurance Financing Methods, Wayne Vroman, Elaine Maag, Christopher J. O'Leary, Stephen A. Woodbury

External Papers and Reports

No abstract provided.

Are Teacher Pensions "Hazardous" For Schools?, Patten Priestley Mahler

Upjohn Institute Working Papers

I use a detailed panel of data and a unique modeling specification to explore how public schoolteachers respond to the incentives embedded in North Carolina’s retirement system. Like most public-sector retirement plans, North Carolina’s teacher pension implicitly encourages teachers to continue working until they are eligible for their pension benefits, and then leave soon afterward. I find that teachers with higher levels of quality, as measured by a teacher’s value-added to her students’ achievement test scores, are more responsive to the “pull” of teacher pensions. Younger teachers, those with higher salaries, and nonwhite teachers are also more likely to stay …

Wage Setting In The United States, Randall W. Eberts

Presentations

No abstract provided.

Early Childhood Education And Local Economic Development, Timothy J. Bartik

Presentations

No abstract provided.

The Effect Of Paid Sick Leave Mandates On Access To Paid Leave And Work Absences, Kevin Callison, Michael F. Pesko

Upjohn Institute Working Papers

We evaluate the impact of paid sick leave (PSL) mandates on access to PSL and work absences for private sector workers in the U.S. By exploiting geographic and temporal variation in PSL mandate enactment, we compare changes in outcomes for workers in counties affected by a PSL mandate to changes for those in counties with no mandate. Additionally, we rely on within-county variation in the propensity to gain PSL following a mandate to estimate policy effects for workers most likely to acquire coverage. Results indicate that PSL mandates lead to increased access to PSL benefits, especially for women and those …

New Hires Quality Index, Brad J. Hershbein

Presentations

No abstract provided.

The New Hires Quality Index: A Wage Metric For Newly Hired Workers, Brad J. Hershbein

Reports

No abstract provided.

Do Recessions Accelerate Routine-Biased Technological Change? Evidence From Vacancy Postings, Brad J. Hershbein, Lisa B. Kahn

Employment Research Newsletter

No abstract provided.

The 2008 Economic Stimulus Payments Increased Emotional Well-Being, Marta Lachowska

Employment Research Newsletter

No abstract provided.

Charles Ballard Interview, Justin Carinci

External Papers and Reports

Professor Charles Ballard of Michigan State University delivered the lecture “The Fall and Rise of Income Equality in the United States” Sept. 27, 2017 as part of the Werner Sichel Lecture Series at Western Michigan University. Ballard detailed the “Great Convergence” of income equality in the United States that grew out of policies of the 1930s and 1940s and a “Great Divergence” of inequality starting about 1980. Ballard called this income gap, which is now greater than during the Gilded Age, “the largest economic phenomenon of our lifetimes.”

Evaluating Public Employment Programs With Field Experiments: A Survey Of American Evidence, Christopher J. O'Leary

Upjohn Institute Working Papers

Research in the 1970s based on observational data provided evidence consistent with predictions from economic theory that paying unemployment insurance (UI) benefits to involuntarily jobless workers prolongs unemployment. However, some scholars also reported estimates that the additional time spent in subsidized job search was productive. That is, UI receipt tended to raise reemployment wages after work search among the unemployed. A series of field experiments in the 1980s investigated positive incentives to overcome the work disincentive effects of UI. These were followed by experiments in the 1990s that evaluated the effects of restrictions on UI eligibility through stronger work search …

Erica Groshen Interview, Justin Carinci

External Papers and Reports

Interview with former Commissioner of Labor Statistics and head of the U.S. Bureau of Labor Statistics, Erica Groshen, from her presentation at the W.E. Upjohn Institute on August 29, 2017.

Economic Shocks And Crime: Evidence From The Brazilian Trade Liberalization, Rafael Dix-Carneiro, Rodrigo R. Soares, Gabriel Ulyssea

Upjohn Institute Working Papers

This paper studies the effect of changes in economic conditions on crime. We exploit the 1990s trade liberalization in Brazil as a natural experiment generating exogenous shocks to local economies. We document that regions exposed to larger tariff reductions experienced a temporary increase in crime following liberalization. Next, we investigate through what channels the trade-induced economic shocks may have affected crime. We show that the shocks had significant effects on potential determinants of crime, such as labor market conditions, public goods provision, and income inequality. We propose a novel framework exploiting the distinct dynamic responses of these variables to obtain …

The Current State Of Workers' Compensation: Benefit Adequacy, Return To Work, And Prevention, Marcus Dillender, H. Allan Hunt

Employment Research Newsletter

No abstract provided.

Regulating Access To Work In The Gig Labor Market: The Case Of Uber, Morris M. Kleiner

Employment Research Newsletter

No abstract provided.

Demonstration And Evaluation Of The Short-Time Compensation Program In Iowa And Oregon: Final Report, Susan N. Houseman, Christopher J. O'Leary, Katharine G. Abraham, Frank Bennici, Susan Labin, Richard Sigman

External Papers and Reports

Short-time compensation (STC) is an optional program within some state unemployment insurance (UI) systems that allows employers experiencing a temporary reduction in business to lower the average hours of employees in lieu of laying them off. Employer use of the STC option has been low in states with STC programs. We conducted demonstrations in Iowa and Oregon to evaluate the effectiveness of several interventions designed to increase employer awareness and use of STC, including disseminating information about STC to specific employers (members of the “treatment” group) over a 12-month period. The main findings support the hypothesis that lack of awareness …

New Evidence On State Fiscal Multipliers: Implications For State Policies, Timothy J. Bartik

Upjohn Institute Working Papers

When state and local governments engage in balanced budget changes in taxes and spending, what fiscal multiplier effects do such policies have on creating local jobs? Traditionally, the view has been that possible job-creation effects of such state and local “demand-side” policies are smaller, second-order effects. Such effects might be worthwhile to take into consideration when a state or local government balances its budget during a recession, but the effects were believed to be of modest magnitude, and not of major importance for more general state and local public policies. However, recent estimates of fiscal multiplier effects of state and …

The Effect Of Public Pension Wealth On Saving And Expenditure, Marta Lachowska, Michał Myck

Upjohn Institute Working Papers

This paper examines the degree of substitution between public pension wealth and private saving by studying Poland’s 1999 pension reform. The analysis identifies the effect of pension wealth on private saving using cohort-by-time variation in pension wealth induced by the reform. The estimates, which are based on the 1997–2003 Polish Household Budget Surveys, show that 1 Polish zloty (PLN) less of pension wealth increases household saving by 0.3 PLN. Among highly-educated households, pension wealth and private saving appear to be close substitutes.