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Oil Refinery

POLICY BRIEF: Calibrating the Price of Climate Risk

Science reveals that doing nothing about fossil fuel emissions is leading to shattering changes in the earth’s climate. But how do we measure the cost of doing nothing today? A novel economic model puts a price on inaction, revealing that billions quickly turn into trillions in foregone consumption tied to climate change. It’s a mathematical argument for moving quickly to adopting a carbon tax in order to avert the unimaginable costs of delay.
Portrait: Fatih Guvenen

Fatih Guvenen on Teen Employment in WSJ

On the down side, teens who forgo college for jobs risk relinquishing significant long-term income, said Fatih Guvenen. The median full-time worker, older than 25, with a bachelor’s degree earned $1,286 a week during the first three months of 2018, labor data show. That is $573 more than for those with only a high-school diploma and more than double the earnings for high-school dropouts.
Portrait of Joaquin Garcia-Cabo

A Tale of Two Contracts

Joaquin Garcia-Cabo came to the US with a prestigious master’s degree and an interest in macro and labor economics. As he completes his PhD program, his job market paper introduces a new model to understand the effects of firing costs on human capital accumulation, job cyclicality, and the persistence of job loss for Spanish workers. His research can be used to analyze the costs and benefits of future policies.