Overview: Measures of market concentration in many U.S. industries have been rising for nearly four decades. Since the early 2000s, these trends have coincided with a falling labor share of income, declining private investment, and rising corporate profit rates and markups (the difference between price and marginal cost). Philippon argues these patterns are unique to […]
Much of the public debate in recent years suggests that wages are not primarily determined by productivity. Indeed, the argument that the link between compensation and productivity has been effectively severed is commonly made. In this paper, I first discuss the wage-setting process and the conceptual issues that are of critical importance to any […]
Overview: US productivity growth¬—the engine of long-run wage growth—has been lackluster for the past decade. Meanwhile, US public investment in research and development (R&D), is near historic lows. Although private sector R&D investment has increased over time private sector funding is insufficient to bring about desired gains in productivity growth and wages. Van Reenen argues […]
David Autor is the Ford Professor of Economics and Co-Chair of the MIT Task Force on the Work of the Future. This report was produced in collaboration with the MIT Task Force on the Work of the Future. SUMMARY: Since 1980, college-educated workers have been steadily moving into affluent cities while non-college workers have been […]
Over the course of the past year, the Aspen Economic Strategy Group collected policy ideas to address the barriers to broad-based economic opportunity and identified concrete proposals with bipartisan appeal.
Economic and technological change has made lifelong learning more important than ever and partly explains the rise of online education, the flexibility of which appeals to mid-career Americans. Most existing online education appears to result, however, in poor learning and labor market outcomes. Promising models of low- cost, high-quality online education are only now […]
Overview: Recent wealth tax proposals put forward by Democratic presidential candidates Senator Elizabeth Warren and Senator Bernie Sanders would impose an annual tax on the net worth of the wealthiest Americans. The proposed wealth tax rates are in the range of 2 to 8 percent per year. Although those tax rates might appear low, they […]