Labor Markets

  • Michael Hout
  • Gregory Acs
  • David Card
  • Jesse Rothstein

Leaders: Gregory Acs, David Card, Michael Hout, Jesse Rothstein

The labor market was of course hit very heavily by the Great Recession, as evidenced by (a) the slow recovery of the unemployment rate, (b) and the even slower recovery of the long-term unemployment rate and the prime-age employment ratio (defined as the ratio of employed 25-54 year-olds to the population of that same age). This “jobs problem,” which is especially prominent among low-skill workers, has led to a sharp rise in the number of poor households without any working adults. It also underlies, in part, the sharp increase in the number of disability insurance claims and awards, which in turn has further reduced the supply of labor among low-skilled individuals.

If the first type of “jobs problem” is that there still are not enough of them, the second is that the jobs that are available do not always provide the requisite hours, wages, or security that are needed for a sure pathway out of poverty. As a result, low-skill individuals are not just working less but, even when they are working, there is no guarantee that their jobs will lift them and their families out of poverty. The Labor Markets RG is tasked with conducting research on these and related problems and exploiting administrative and other data to assess possible policy responses to them. We list below a few examples of the work being carried out in this group.

Long-run effects of work incentives: As nonworking poverty increases, the U.S. might well want to turn to new types of work incentive programs. Have these programs worked elsewhere?

Minimum wages and poverty: Throughout the west coast, there are a host of minimum wage “experiments” underway, experiments that have the potential to reset the low-wage labor market in quite fundamental ways. How are these experiments playing out?

Labor Markets - CPI Research

Title Author Media
Crime and the Great Recession Christopher Uggen

Crime and the Great Recession

Author: Christopher Uggen
Publisher: Russell Sage Foundation and Center on Poverty and Inequality
Date: 10/2012

Common sense tells us that crime should increase during hard times. After all, more than 90 percent of the serious "index" crimes reported each year in the government's Uniform Crime Reports involve some kind of financial remuneration. And we've all seen examples of people taking desperate actions when they are cold, broke, and hungry, whether through real-life, firsthand observations or through fictional characters like Tom Joad in The Grapes of Wrath. Yet there is much evidence that crime rates and economic indicators often diverge.

The Social Safety Net and the Great Recession Robert A. Moffitt

The Social Safety Net and the Great Recession

Author: Robert A. Moffitt
Publisher:
Date: 10/2012

As the economic downturn wears on, the debate about U.S. spending on the safety net has become increasingly rancorous. Indeed, former presidential candidate Newt Gingrich famously referred to Barack Obama as "the food stamp president" in the early-2012 campaign trail. The purpose of this recession brief is to step back from the rancor and describe in straightforward fashion how spending on the safety net has responded to the Great Recession.

Charitable Giving and the Great Recession Rob Reich, Christopher Wimer

Charitable Giving and the Great Recession

Author: Rob Reich, Christopher Wimer
Publisher:
Date: 10/2012

Americans have long been, and continue to be, a famously charitable people. Whereas Europeans have well-developed and comprehensive welfare states, the United States has always relied more on private charity to support a multitude of causes, including aid and assistance to the poor.

Consumption and the Great Recession Luigi Pistaferri, Ivaylo Petev

Consumption and the Great Recession

Author: Luigi Pistaferri, Ivaylo Petev
Publisher:
Date: 10/2012

The particular trauma of severe downturns is that declining consumer spending, itself a reaction to the economy's contraction, also undermines the prospects for recovery. Consumption is, in other words, a fundamental determinant of business cycles - a kind of litmus test of economic health. But it's not just an important determinant of future economic performance. We also look to consumption as an omnibus measure of the set of socioeconomic conditions that underlie consumer behavior, such as job opportunities, price fluctuations, access to credit, and financial security. In this recession brief, we offer an interpretation of recent consumption data in order to determine the extent of the economic damage and its unequal distribution across the American populace.

Family, the Lifecourse, and the Great Recession S. Philip Morgan, Erin Cumberworth, Christopher Wimer

Family, the Lifecourse, and the Great Recession

Author: S. Philip Morgan, Erin Cumberworth, Christopher Wimer
Publisher:
Date: 10/2012

The family is an important setting within which the Great Recession can exert its influence. Although the downturn directly affected many workers by reducing their earnings or forcing them into unemployment, it affected others indirectly by changing their living arrangements or family life. Further, the ways in which families are formed or broken up may be affected by the Great Recession, as it can alter the perceived costs and benefits of various family-relevant behaviors. Amid the turmoil and economic upheaval in the wider economy, individuals and families go about their lives, deciding to get married, suffering through breakups and divorces, planning families, and sorting out their living arrangements. The recession could have major effects on all of these family processes.

labor markets - CPI Affiliates

John Mirowsky's picture John Mirowsky Professor
University of Texas at Austin
John Van Reenen's picture John Van Reenen Full Professor of Economics, Director, Center for Economic Performance
London School of Economics
Jonas Pontusson's picture Jonas Pontusson Professor of Polics
Princeton University

Pages

Labor Markets - Other Research

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Labor Markets - Multimedia

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