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The Dictator ebook an analysis of the determinants of occupational upgrading president is so from a gown, but in its quiet music, it will also offer interesting. Employment and opportunity barriers associated with the criminal justice system. The National Employment Law Project reports that 70 million people in America now have a conviction or arrest history that can show up on a routine background check for employment. Research shows extensive employment and earnings disadvantages to those with criminal records, with serious negative spillovers to the families of those who face incarceration.
The fact that these problems disproportionately affect racial minorities is partially a function of institutionalized racism associated with the criminal justice system, so the barrier of discrimination is germane here as well.
The root causes of these problems are described by the barriers themselves. Discrimination, persistently slack labor markets, historically high levels of inequality and even higher levels of wealth inequality, regional economic segregation, inadequate investments in both the contemporary and future well-being of less-advantaged children and families often through disinvestment in public goods , low access to educational opportunities, high exposure to toxic environments—all of these factors are causes of the erosion of opportunity for many in our society.
Especially given the economic focus of this committee, I stress the role of our high levels of inequality as one of the most important opportunity barriers. A common concern among macroeconomic analysts today, for good reason, is that growth, particularly productivity growth, has slowed sharply over the past decade a problem seen across advanced economies. I would characterize this deceleration as one of the most important constraints on growth and, thereby, on aggregate living standards.
If most of the growth flows to the top of the scale, as has occurred in recent decades, then absent aggressive redistribution, we cannot expect to push back on the many problems just documented. A useful way to think about policies targeting opportunity is to consider those that can address near-term opportunity barriers and those that address longer-term barriers.
Long-term interventions, like quality pre-school or improved access to higher education, can enhance the future opportunities of children. As I report below, considerable research has found that many safety net programs, like nutritional and health care support, both help reduce poverty in the near term and improve longer-term outcomes for children.
Running a tight labor market. There is extensive evidence showing that lower-wage and minority workers are disproportionately helped by tight labor markets. Forthcoming research from the Center on Budget and Policy Priorities CBPP Full Employment Project shows that in both Ohio and New Mexico, for example, the real annual earnings of non-college-educated, prime-age men ended up in at about the same level as they were in see figure below. The figure, however, reveals a strong response to the tight labor market of the s in both states, as well as a strong pop at the end of the figure, in the latest year in which data is available , that continues in a forecast that assumes unemployment continues to decline.
The recovery appears to finally be reaching some places that have thus far been left behind, so absent clear evidence of inflationary pressures, the Fed should proceed with caution. Investing in infrastructure. I should note that complaints about the conditions of our public capital are bipartisan: both poverty advocates and Chambers of Commerce argue that Congress must work together to address this investment shortfall. Civil engineers have identified  the productivity-dampening deterioration of our roads, bridges, public transit, and other transportation infrastructure.
Roofs, windows, boilers, and ventilation, plumbing, and electrical systems need to be fixed, upgraded, or replaced. Such investments fit both here and under longer-term opportunity enhancers, especially if we consider, as we should, investments in human capital as another dimension of investing in public goods. But in the near term, infrastructure investment can create employment for blue-collar laborers, making it a particularly strategic investment in parts of the country with too little labor demand. Direct job creation.
While Congress often tries to provide help to left-behind places through targeted tax credits, such incentives have a poor track record. Infrastructure ideas, like renovating our stock of public schools by directly creating temporary jobs, fit into this space as well, but Bernstein and Spielberg elaborate a more ambitious approach. We stress that subsidized jobs and job creation programs provide income to people who need it and will spend it, thereby helping to boost weak local economies, while providing opportunities to workers disconnected from the labor market.
Improving Economic Opportunity in the United States
We also cite research showing that there can be lasting benefits from helping such workers overcome labor market barriers that are preventing them from gainful employment. Though our work largely focused on direct jobs to offset recessions, today many policy makers are legitimately concerned about places facing recession-like conditions even while other places are doing much better. This initiative should enable states to try different approaches to subsidized jobs, encouraging them to experiment to learn more about what works best and for whom.
Health care and other work supports. Another important way to help less advantaged persons get in and stay in the labor force — and to tap entrepreneurial opportunities — is to ensure a solid system of work supports, with health care as a standout example. Opportunities related to entrepreneurship are of particular interest to this committee. Members will thus be interested in the findings from two studies suggesting that employer-provided health coverage is a constraint on business formation by potential entrepreneurs.
Helping small manufacturers join global supply chains: The Trump Administration has talked about the need for policy to help our manufacturers compete more effectively in the global economy. In analysis I did with Congressman Ro Khanna, we argued that policy should target smaller manufacturers from areas with displaced workers, helping such firms modernize and find their way into the global supply chain.
In this recent op-ed, I also suggest two measures to level the trade playing field and push back on currency manipulation: currency reciprocity the ability to purchase the currency of manipulators to neutralize their intervention and countervailing duties on exports from countries that use currency depreciation to subsidize exports.
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Invest in renewable energy. Pollin et al. They estimate that their investment agenda private and public would generate 2. Apprenticeship programs. Economist Robert Lerman makes a strong case that apprenticeship programs, or work-based learning, can be highly effective in connecting young workers with limited prospects to good jobs. Public policy can help and is doing so in some states and other advanced economies through grants and credits to employers who start up apprenticeship programs, as well as spreading the word to the broader employment community.
Moreover, these programs can enhance opportunity by setting out career pathways for upward mobility, as well as including post-secondary education as part of their package.
Moving to opportunity. The inequality and mobility expert Raj Chetty and various teams of researchers have identified a set of neighborhood correlates associated with lower and high levels of opportunity and mobility for children. While Chetty et al. For example, they find that communities with a large share of mother-only families experience relatively low mobility.
But two-parent families in those neighborhoods experience the same lower mobility rates, suggesting that single parenthood is likely a correlate more than a cause. Also, policy makers cannot, of course, simply advocate leaving disadvantaged neighborhoods as a sole strategy for families there. We must apply policies like those noted above to help the families that stay behind.
Helping people move to opportunity is certainly one valid strategy, but moving opportunity to people where they are is another. As discussed above, the long-term rise of income inequality has negative impacts on long-term opportunity and mobility through at least three channels. First, it makes neighborhoods of concentrated poverty and wealth more common and neighborhoods with more income diversity less common. Children in neighborhoods of concentrated poverty are exposed to more environmental hazards, lower-quality public goods, and less privileged social networks than children in higher-income neighborhoods.
Higher-income parents can invest in more enrichment opportunities for their children, and children from wealthier families can attend more adequately funded schools. Addressing these long-term barriers requires policy interventions targeting inequality, inadequate housing, income and wage stagnation, nutritional and health support, educational access, and environmental degradation. Importantly, extensive research on longitudinal data data that tracks people or places over time finds that many of our safety net programs work as long-term mobility enhancers.
They work like investments, with lasting impacts.
timulpemonlo.ga CBPP has elaborated a set of recommendations for boosting longer-term opportunities in the spirit of this research by strengthening and extending successful safety net programs. For example, bipartisan support exists for significantly increasing the value of the EITC for childless adults.
Older low-income childless workers are eligible for only a very small credit; e. Proposals to significantly increase the value of the credit would lift hundreds of thousands of workers out of poverty and bring millions closer to the poverty threshold. However, researchers argue that these expansion proposals could have positive impacts on longer-term labor supply, reduced incarceration, and higher marriage rates.
Increasing the EITC is sometimes promoted as a substitute to higher minimum wages. With respect to the findings of Chetty et al.