According to the New York Times, recent findings by Fatih Guvenen and his co-authors based on lifetime income histories of millions of workers "are a stark reminder that the twin scourges of poor wage growth and income inequality, left unaddressed, will only worsen."
In the early 1970s, hours worked per working-age person in Spain were higher than in the U.S. A mere 5 years later, hours worked in Spain fell by 40 percent. Tim Kehoe and his coauthor examine the reasons behind the decline in hours and analyze the impacts taxes and productivity have on this phenomenon.
Middle- and working-class workers’ earnings in the US have been stagnating or sinking in recent decades, according to a study conducted by a group of researchers that included the University of Minnesota’s Fatih Guvenen, Ph.D., Curtis L. Carlson professor of economics in the College of Liberal Arts.
“NAFTA did a good job," explains Tim Kehoe. "Mexico is now one of the biggest trading partners for Minnesota agriculture. If renegotiations hurt Mexico, they will certainly slap restrictions on the U.S.”
By pairing economics with a major in global studies and extracurriculars, senior Riley Runnoe graduated this May with the knowledge, skills, and experience to pursue his passion for development economics.
“The University of Minnesota Department of Economics' combination of mathematical rigor and boldness of unconventional thinking has provided not only me, but countless other students with a training that is uniquely Minnesota-economics. It surely has changed my life.”
New research examining six decades of income data by Fatih Guvenen and his co-authors produces interesting findings. “We are maybe looking at the wrong place for the solution to stagnation in wages and rising inequalities,” Guvenen said. “To understand higher inequality, we should turn and take a closer look at youth.”
A new working paper by Fatih Guvenen and co-authors investigates how shifting profits overseas is impacting U.S. productivity measures. "The current international accounting system allows a lot of flexibility — you might say too much flexibility — which allows companies to shift their profits to low-tax jurisdictions," said Fatih Guvenen of the research.