If Revisionist UI Models Are Wrong, So Are Revisionist Minimum Wage Models

The Hagedorn, Manovskii, and Mitman working paper on the effect of unemployment insurance (UI) on employment has been getting a lot of press lately. In brief, they find that the end of the federal unemployment insurance extension accounts for about 1.8 million new jobs in 2014. Mike Konczal does a useful deep dive on the … Continue reading If Revisionist UI Models Are Wrong, So Are Revisionist Minimum Wage Models

Nominal Wage Growth Over Time

Here are quarterly data on "usual weekly earnings" in current dollars from the Bureau of Labor Statistics. The first graph shows the first (lowest) decile of wage earners. The second shows the ninth (why not the tenth? BLS does not make that an option). These data should be relevant to the debate over whether most … Continue reading Nominal Wage Growth Over Time

Reforming Trade Adjustment and Unemployment Assistance

Matthew Slaughter and Robert Lawrence have an interesting little proposal in the NY Times: abolishing Trade Adjustment Assistance (TAA), rolling it into unemployment insurance, and reforming the program so as to reduce its work disincentives. They also advocate special tax treatment for unemployed workers' expenditures on job retraining. They sell the plan, which they say … Continue reading Reforming Trade Adjustment and Unemployment Assistance

A Deficit-Neutral Plan to Slash Unemployment

While the U.S. economy has been officially out of recession for a while and growing at a decent clip (1.8% at a seasonally adjusted annual rate in the first quarter of this year, 3.1% in the last quarter of 2010 - see chart), unemployment remains very unusually high, 9.0% in April 2011 (seasonally adjusted), compared … Continue reading A Deficit-Neutral Plan to Slash Unemployment