Join us on November 9 for the 3rd Annual Jon Goldstein Memorial Lecture on Economics and Environmental Policy featuring Robert Pindyck, Professor in Finance and Economics at the MIT Sloan School of Management.
In the past three decades, explanations for income inequality have multiplied almost as fast as the compensation gap in the U.S. and industrialized world. The way private firms have sorted and segregated workers by skill and pay drives disparity in ways that require a closer look from policymakers.
“We can easily afford to do this, in fact I would argue we can’t afford not to,” Art Rolnick said. “These are the future workers of our economy. If we don’t invest now, our economy is going to suffer down the road.”
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.