The hottest Labor Economics Substack posts right now

People at the top of finance live in a metaphorical 'skyscraper' and become distant from the everyday work and immediate impacts that ground-level people experience.
Apex positions amplify tiny actions into massive consequences, so small decisions by elites can yield huge profits while the many workers who enable those outcomes get little reward.
All high-level economic activity rests on an 'underarchy' of ecology, primary labour and care, and when elites lose touch with that foundation they risk making big plans that ignore real human and environmental needs.

AI systems like large language models are deeply shaped by human behavior and social complexity. Using social-science ideas such as complexity theory can help us understand and improve these systems.
AI can recreate historical thinkers to replay debates about technology and work. These recreations highlight disagreements over whether automation causes lasting unemployment or just temporary disruption through creative destruction.
LLMs now let researchers draft and sometimes publish papers far faster than before, enabling quick 'vibe researching' from idea to paper in minutes or hours. This shifts how research is done and raises questions about quality, oversight, and the role of human judgment.

Many American families are earning more now, with a significant number making over $150,000. This shows that while some are doing better, the middle class is shrinking as they move into higher income brackets.
Housing costs are rising much faster for lower-income families compared to those with higher incomes. This creates a bigger gap, making it tougher for low-income families to keep up with rent increases.
Despite overall economic growth, many people feel worse off. Families with lower incomes often face serious challenges, and their situation is not improving like it should, leading them to believe the economy is unfair or 'rigged'.

The High-Wage Thesis suggests that higher wages encourage investment in technology, but this idea is poorly supported by evidence. It means that just because wages are higher, it doesn't necessarily lead to faster innovation.
Instead of focusing solely on labor costs, we should consider the absolute costs of resources like coal that made certain technologies more practical. This could explain some innovations without relying on the idea of higher labor costs.
The assumptions behind the High-Wage Thesis might not hold true, and questioning these assumptions can lead to a deeper understanding of economic history and industrial innovations. It shows the need for careful examination of widely accepted theories.

The paper discusses the importance of 'design' in addressing selection bias in causal inference.
Design focuses on understanding the mechanisms behind treatment assignment in data analysis.
Good writing is crucial in academic work, emphasizing the significance of clear communication in quantitative research.

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Jobs are created not by robots but by the need for workers to operate businesses. Companies like Amazon rely heavily on their workers to exist.
When companies automate or replace jobs with machines, it's really about the bosses choosing to spend money on technology instead of their employees. This often means fewer jobs.
Economic growth doesn't necessarily mean better lives for workers. As technology advances, the pressure to keep up increases, leaving employees stressed and wanting.

The left and right have very different views on how wealth is created and who deserves it. Leftists see rich people as taking advantage of workers, while rightists believe everyone contributes to wealth creation.
Many people can move up the economic ladder, and success isn't solely about one's environment or education. Personal talent and hard work play a big role.
The rich provide essential resources that support society, while the poor often rely on the wealthy for stability. Instead of resenting the rich, the poor could recognize their contributions.

Soviet efforts in STEM education showed mixed results. They successfully promoted education for women and some minorities but struggled with significant under-representation of certain ethnic groups.
The Soviet Union's focus on broad access to quality STEM instruction helped elevate educational standards, but the emphasis on equity didn't always lead to equal outcomes for all ethnicities.
High-performance recognition and a strong commitment to STEM were central to the Soviet identity, but their rigid systems sometimes limited the potential of certain groups and led to brain drain as talent emigrated.

Austrian economists should pay more attention to John Haltiwanger’s research on creative destruction. His work shows how important entrepreneurial growth is to the economy.
Entrepreneurs help move resources to better uses by discovering opportunities and improving efficiency. This competition helps the economy grow and evolve.
Measuring how resources are reallocated can show if markets are really working well. If more productive firms gain market share, it indicates a healthy, dynamic economy.

Germany's experiment with a four-day workweek showed that people felt they were working more intensely but did not see a drop in revenue or profit. Most participants preferred this new schedule and wanted to continue it.
A new study indicates that a strong job market is leading to less skilled workers in childcare, making it harder to find quality care. This problem is contributing to families struggling to find suitable childcare options.
In a Japanese town, nearly half of the residents have three or more kids due to supportive policies like free healthcare for children and subsidized school meals. This highlights a successful approach to encourage higher birth rates.

Inflation measurement is complex and changes in how we calculate it can significantly impact our understanding of the economy. Small adjustments can make us feel either richer or poorer.
The Consumer Price Index (CPI) is crucial for economic policies, affecting everything from Social Security benefits to tax brackets, which makes its measurement a point of political debate.
Various methods and indexes, like the PCE and the chained CPI, aim to capture price changes accurately, but they each have strengths and weaknesses in addressing real-life consumer experiences.