Unbiased Analysis of Today's Healthcare Issues
Many economists have noted that wage growth has not kept up with overall economic growth over the past few decades. We observe widening wage inequality since the 1970s. Are workers getting poorer relative to the owners of capital? Is a communist revolution needed to equalize the playing field? Economist Martin Feldstein thinks not. “Feldstein…
In recent years, economists have examined the phenomenon of offshoring. Offshorable service jobs are characterized by a number of factors. Jensen and Kletzer note that offshorable jobs have little face-to-face customer contact and work processes that can be monitored via the internet. Thus, data entry is easily offshorable whereas barbershop services are not. A paper…
The WSJ Real Time Economics blog reviews a paper by Michael Lechner which finds that “sports-playing adults saw a boost in income of about 1,200 euros per year over 16 years when compared to their less active peers. That translates into a 5-10% rate of return on sports activities, roughly equal to the benefit of…
Nobel laureate James Heckman has a nice summary of how applied econometricians and policy researchers should define causality. Some of the more interesting points I have excerpted below. On the source of randomness in a sample “One reason why many statistical models are incomplete is that they do not specify the sources of randomness generating…
Economists predict that longer life expectancy leads to more investment in education. For those who live a short time, sacrificing working years for education is not worthwhile if the payback period is short. For those with a longer life expectancy, an individual can reap the monetary rewards from education over a longer period of time.…
Should employers provide health insurance to their employees? There are many reasons why they should. One is that employees are attracted to firms that offer health insurance, especially since their are tax and cost advantages to group health insurance purchased through an employer. Another reason is that if a worker becomes sick, that reduces productivity.…
Paul Levy, the president and CEO of Beth Israel Deaconess Medical Center in Boston made about $1 million dollars in 2005. Of this, $650,000 was base salary, $195,000 was made up of incentive bonus, and the balance was composed of compensation for health insurance, life insurance, and retirement. How do I know these figures? Paul…
Gruber (1994) shows that the costs of employer-provided health insurance benefits are passed on to employees through lower wages. But do employees with higher expected medical expenses have their wages reduced by a higher amount to reflect the additional medical costs to employers? This may not be the case if employers can not observe the…
Are smart people risk averse? Are dumb people impatient? This is what Thomas Dohmen, Armin Falk, David Huffman, Uwe Sunde explore in their 2007 Discussion paper. Using data from a choice experiment of 1000 German adults, the authors tested for risk aversion using a Holt & Laury framework, and for impatience by varying the annual…
Do students who attend better schools preform better academically? This is tautologically correct, but not very informative. What would happen if we randomly moved students from low quality schools to high quality schools? Would they do better? Using the results from Chicago Public Schools randomized lotteries of elementary studies, Julie Cullen–my dissertation adviser–attempts to answer…