Authors: Meghana Gaur, Princeton University John Grigsby, Princeton University Jonathon Hazell, London School of Economics Abdoulaye Ndiaye, New York University Abstract: We introduce dynamic incentive contracts into a model of inflation and unemployment dynamics. Our main result is that wage cyclicality from incentives neither affects the slope of the Phillips curve for prices nor dampens unemployment dynamics. The impulse response of unemployment in economies with flexible, procyclical incentive pay is first-order equivalent to that of economies with rigid wages. Likewise, the slope of the P ..read more

The U.S. Department of Labor recently released a much-anticipated proposed rule that promises to protect workers from on-the-job injuries and deaths that result from toiling in the heat. The timing of the proposal was apt, given the high temperatures experienced across the country over the past few weeks. As the Washington Center for Equitable Growth previously documented—evidence that was used by the Labor Department to justify its new proposal—worker injuries and deaths are much more common on hot days than on more temperate ones. Employees are more likely to experience both ailments direct ..read more

On July 1, the first step of the U.S. Department of Labor’s new overtime rule went into effect, meaning about 1 million salaried, white-collar workers currently exempt from overtime began receiving greater protections—a higher salary, new eligibility for overtime pay, or more time with their families, depending on how their employers respond. After the rule is implemented in full on January 1, 2025, more than 4 million workers will see these sorts of benefits. The Department of Labor is responsible for establishing the minimum salary that a white-collar worker must earn to be exempt from over ..read more

The post In Conversation with Natalie Foster appeared first on Equitable Growth ..read more

Several provisions of former President Donald Trump’s 2017 tax cuts are set to expire next year, providing an opportunity to reimagine how federal taxes can both raise additional revenue for critical public investments and ensure the U.S. economy is working for all—not just the privileged few. Replacing the failed “trickle down” tax policies of the past will require both robust evidence and creative vision. On June 17, the Washington Center for Equitable Growth hosted an event titled “The Promise of Equitable and Pro-Growth Tax Reform,” gathering academics and policymakers, as well as journal ..read more

On June 19, 1865, emancipation was officially declared in the state of Texas, more than two full years after the Emancipation Proclamation and more than two full months after the pro-slavery rebellion was defeated in the Civil War. This day, thereafter called Juneteenth, marked the real end of the juridical and economic system of slavery in the United States, but in reality the political struggle for freedom continued and continues to this day in new forms. Tomorrow, we celebrate this emancipation. But it is also a time for reflection on the legacies of freedom deferred. To mark the day, we a ..read more

The Washington Center for Equitable Growth today launched our new Nonresident Scholars program. This is our latest way of connecting academics to policymakers to ensure public policy debates are grounded in economic evidence. The researchers in this program will serve as go-to resources for media and policymakers on a variety of issues, from tax policy to family and labor policy to macroeconomic trends. The 2024 Nonresident Scholars cohort includes 11 researchers from Equitable Growth’s academic network spanning disciplines, institutions, and career stages. These scholars will be available to ..read more

The post In Conversation with Miles Corak appeared first on Equitable Growth ..read more

Overview Social science researchers play an important role in the policymaking process. Researchers help policymakers at all levels of government to understand key trends and issues in the U.S. economy and society, produce important descriptive facts about the world that can inform policy responses, and track the past or project future impacts of policies on key outcomes and populations. For social scientists to have this kind of impact on policymaking, they need to produce research that speaks to the issues, questions, and priorities that are relevant to policymakers. What are the types of so ..read more

Melinda French Gates’ Pivotal funds organization as part of $1 billion global commitment The Washington Center for Equitable Growth announced today that it has received funding from Pivotal as part of Melinda French Gates’ commitment to women’s power in the United States and around the world. “I’m honored that Equitable Growth has received this support from Melinda French Gates to advance gender equality and the care economy in the United States,” said Equitable Growth President and CEO Shayna Strom. “Research shows that gender inequality harms the econ ..read more