The U.S. economy has polarized since 1980, with widening gaps between high- and low-skilled wages driving increased inequality. One study has provided a partial explanation for this trend, identifying that sectors with high “income elasticity” (where demand is more sensitive to changes in income) are more likely to employ both high- and low-skilled workers, but less likely to employ medium-skilled workers.
Articles, Op-Eds, & Blogs
October 28, 2019
Fact of the Week: Sectors With High “Income Elasticity” Employ Fewer Medium-Skill Workers, Explaining 60 Percent of the Decline in Their Share of Wages Between 1980 and 2016
October 23, 2019
Nearly 25 percent of all R&D expenditures in China come in the form of government subsidies to firms. It would be ideal if China dramatically reduced these innovation subsidies so American workers in innovation industries would face a level playing field, but the chances of that happening are slim to none. It is time for the federal government to step up its game and provide significantly more support for industrial R&D.
October 21, 2019
Fact of the Week: Artificial Price Controls Could Lower the Number of new Drugs by 3 to 5 Percent Over the Next Decade
In response to increased public pressure, both Congress and the Trump Administration have recently promoted efforts to reduce the price of prescription drugs in the United States. Several other countries have already imposed measures of their own.
October 21, 2019
In Attempt to Ban Facial Recognition Technology, Massachusetts Could Inadvertently Ban Facebook, iPhones, and More
The Massachusetts Joint Committee on the Judiciary will hold a hearing on October 22 to consider a bill that would enact a statewide of ban of government use of facial recognition technology. This is the latest overreaction to the fear, uncertainty, and doubt that activists have managed to harness into legislative action, and it risks far-reaching unintended consequences.
October 18, 2019
All too often, well-intentioned proposals aimed at protecting children result in rules that could limit innovation for the very population they are intended to help.
October 15, 2019
Fact of the Week: U.S.-Based Scientists Have Published 44 Percent of Recent AI-Related Scientific Articles but Have Been Awarded Only 20 Percent of AI-Related International Patents
Innovation can be approximated across many different metrics, which can present very different impressions of where new technologies are being created and utilized. In a new report, the OECD has analyzed the 2,000 companies that invest the most in R&D for their output related to artificial intelligence.
October 15, 2019
Antitrust law is an important tool for protecting competition and preventing abuses of market power. But the mere possession of data seldom confers lasting market power. And privacy issues, while very important, should not be an antitrust issue.
October 10, 2019
In a book review of Matt Stoller's new book, Goliath: The 100-Year War between Monopoly Power and Democracy, Rob Atkinson writes that returning to a small-business economy of the 1800s is not likely to address the problems America faces today.
October 7, 2019
Fact of the Week: U.S. E-Commerce in 2017 Yielded Revenues of $7.6 Trillion, With Goods Sales Increasing 7 Percent From 2016
U.S. economic data has lagged behind the explosion of the digital economy, preventing researchers from fully understanding the extent of e-commerce and its impact on the broader economy. The Census Bureau is working to remedy this, releasing the first quarterly e-commerce report in August and including services in the annual E-Stats report for the first time in September.
October 1, 2019
In a column for GovTech, Daniel Castro explains how cities around the world are beginning to use "digital twin" technology and encourages them to continue exploring how to use the technology to make their communities smarter, safer and more efficient.