A study co-authored by MIT researchers finds that the Paycheck Protection Program saved between 1.5 and 3.5 million jobs, reports David Leonhardt for The New York Times. “The study adds to the mounting evidence about one kind of economic stimulus that seems to have worked especially well during the pandemic: direct subsidies to businesses, to keep people employed.”
Fast Company reporter Kristin Toussaint writes about a new study by Prof. David Autor that finds middle class jobs for non-college grads are disappearing, particularly for Black and Latino workers. Autor suggest that higher minimum wages “are surprisingly effective at improving the incomes of workers in low wage jobs,” adding that “they don’t seem to have noticeable adverse effects on employment.”
Prof. David Autor has found opportunities for minority workers in cities have receded, particularly those without college degrees, reports Jonnelle Marte for Reuters. “As the middle hollowed out, (minority workers) were more exposed to middle-skilled work, and net of that, they were also over-represented at the low end and under-represented at the high end,” says Autor.
Bloomberg reporter Peter Coy writes that a new study by Prof. David Autor finds cities are no longer “escalators of opportunity” for people in middle-paying jobs, in particular Black and Latino workers. Coy writes that Autor proposes, “one solution is to raise minimum wages in cities, which would raise the living standards of low-income workers.”
A study by Prof. David Autor finds that cities no longer guarantee middle-wage opportunities for Black and Latino workers, reports Andrew Van Dam for The Washington Post. "Changes in occupational structure, in cities, have been larger and arguably less favorable among Blacks and Hispanics than among whites," says Autor.
Axios reporter Erica Pandey writes that a study by Prof. Thomas Kochan underscores how the Covid-19 pandemic has uncovered longstanding shortcomings in worker power. "The key to going from isolated protests at a place like Amazon or Walmart to a force that’s really going to get the company to respond is the customer," says Kochan."Customers are the hidden source of power for workers."
A new paper by MIT researchers finds that instead of raising prices, companies are replying on “shrinkflation - reducing the size of products or their quality while charging the same price,” reports Dion Rabouin for Axios.
A study by MIT researchers examines how large retailers often slot items into certain price points, reports The Economist. The researchers found that retailers, “seem to design products to fit their preferred price points. Given a big enough shift in market conditions, such as an increase in labor costs, firms often redesign a product to fit the price rather than tweak the price.”
Writing for The Boston Globe, Prof. Thomas Kochan and senior lecturer Barbara Dyer address how to tackle growing income inequality in the U.S. “If we are serious about reducing inequality in our country, it’s time to rethink and rework the fundamental framework of US labor law to support the next generation’s labor movement,” they write.
Financial Times reporter Laura Noonan spotlights how the Sloan School developed programming aimed at increasing gender parity in the finance industry. “There is a part for academic institutions in terms of making sure women feel empowered to ask for a seat at the table,” says Heidi Pickett of the Master of Finance program.
In an article for The Wall Street Journal, visiting lecturer Irving Wladawsky-Berger highlights how MIT researchers have proposed a new method for measuring the value of digital goods to consumers. Using this new metric, researchers found that “the digital economy is contributing more consumer value than we’ve realized,” Wladawsky-Berger writes.
A study co-authored by MIT researchers examines the problems associated with linking executive pay to company performance, writes Theo Francis and Vanessa Fuhrmans for The Wall Street Journal. “We have to have a better compensation committee report that tells us what exactly these measures are,” says senior lecturer Robert Pozen of the need for more clarity on how performance is measured.
Writing for The Wall Street Journal, senior lecturer Hal Gregersen examines how managers can ask questions that can help prompt creative thinking. “Bosses should reconceive what their primary job is,” writes Gregersen. “They aren’t there to come up with today’s best answers, or even just to get their teams to come up with them. Their job is to build their organization’s capacity for constant innovation.”
Writing for The Wall Street Journal, Edward Glaeser spotlights a new book from Profs. Johnathan Gruber and Simon Johnson titled, “Jump-Starting America.” Glaeser writes that Gruber and Johnson have “produced a superbly argued case for public and private investment in education and research.”
A new paper co-authored by Prof. Lawrence Schmidt examines why investors tend to make good purchasing decisions, but poor selections when it comes to selling stocks, reports The Economist. The researchers found that the “disparity between sales and purchases is explained by the attention given to each.”