Wealth, Race, and Consumption Smoothing of Typical Income Shocks

Wealth, Race, and Consumption Smoothing of Typical Income Shocks
Author: Peter Ganong
Publisher:
Total Pages:
Release: 2020
Genre:
ISBN:

We estimate the elasticity of consumption with respect to income using an instrument based on firm-wide changes in pay. While much of the consumption-smoothing literature uses variation in unusual windfall income, this instrument captures the temporary income variation that households typically experience. Furthermore, this estimator is precise, allowing us to address an open question about how much the elasticity varies with wealth. We find a much lower consumption response for high-liquidity households, which may help discipline structural models. We then use this instrument to study how wealth shapes racial inequality. An extensive body of work documents a substantial racial wealth gap. However, less is known about how this gap translates into differences in welfare on a month-to-month basis. We find that black (Hispanic) households cut their consumption 50 (20) percent more than white households when faced with a similarly-sized income shock. Nearly all of this differential pass-through of income to consumption is explained, in a statistical sense, by differences in liquid wealth. Combining our empirical estimates with a model, we show that the welfare cost of income volatility is at least 50 percent higher for black households and 20 percent higher for Hispanic households than it is for white households.

A Practical Guide to Macroeconomics

A Practical Guide to Macroeconomics
Author: Jeremy B. Rudd
Publisher: Cambridge University Press
Total Pages: 323
Release: 2024-03-31
Genre: Business & Economics
ISBN: 1009465783

The gulf between macroeconomic theory and macroeconomic practice has never been greater. This book bridges that gap.

The Pandemic Paradox

The Pandemic Paradox
Author: Scott Fulford
Publisher: Princeton University Press
Total Pages: 392
Release: 2023-05-16
Genre: Business & Economics
ISBN: 0691245320

Why most Americans’ finances improved during the worst economic contraction since the Great Depression—and the policy choices that made this possible In March 2020, economic and social life across the United States came to an abrupt halt as the country tried to slow the spread of COVID-19. In the worst economic contraction since the Great Depression, twenty-two million people lost their jobs between mid-March and mid-April of 2020. And yet somehow the finances of most Americans improved during the pandemic—savings went up, debts went down, and fewer people had trouble paying their bills. In The Pandemic Paradox, economist Scott Fulford explains this seeming contradiction, describing how the pandemic reshaped the American economy. As Americans grappled with remote work, “essential” work, and closed schools, three massive pandemic relief bills, starting with the CARES Act on March 27, 2020, managed to protect many of America’s most vulnerable. Fulford draws from the Consumer Financial Protection Bureau's “Making Ends Meet” surveys—which he helped design—to interweave macroeconomic trends in spending, saving, and debt with stories of individual Americans’ economic lives during the pandemic. We meet Winona, who quit her job to take care of her children; Marvin, who retired early and worried that his savings wouldn’t last; Lisa, whose expenses went up after her grown kids (and their dog) moved back home; and many others. What the statistics and the stories show, Fulford argues, is that a better, fairer, more productive economy is still possible. The success of pandemic relief policy proves that Americans’ economic fragility is not an unsolvable problem. But we have to choose to solve it.

The Pandemic Divide

The Pandemic Divide
Author: Gwendolyn L. Wright
Publisher: Duke University Press
Total Pages: 205
Release: 2022-08-22
Genre: Medical
ISBN: 1478023139

As COVID-19 made inroads in the United States in spring 2020, a common refrain rose above the din: “We’re all in this together.” However, the full picture was far more complicated—and far less equitable. Black and Latinx populations suffered illnesses, outbreaks, and deaths at much higher rates than the general populace. Those working in low-paid jobs and those living in confined housing or communities already disproportionately beset by health problems were particularly vulnerable. The contributors to The Pandemic Divide explain how these and other racial disparities came to the forefront in 2020. They explore COVID-19’s impact on multiple arenas of daily life—including wealth, health, housing, employment, and education—while highlighting what steps could have been taken to mitigate the full force of the pandemic. Most crucially, the contributors offer concrete public policy solutions that would allow the nation to respond effectively to future crises and improve the long-term well-being of all Americans. Contributors. Fenaba Addo, Steve Amendum, Leslie Babinski, Sandra Barnes, Mary T. Bassett, Keisha Bentley-Edwards, Kisha Daniels, William A. Darity Jr., Melania DiPietro, Jane Dokko, Fiona Greig, Adam Hollowell, Lucas Hubbard, Damon Jones, Steve Knotek, Arvind Krishnamurthy, Henry Clay McKoy Jr., N. Joyce Payne, Erica Phillips, Eugene Richardson, Paul Robbins, Jung Sakong, Marta Sánchez, Melissa Scott, Kristen Stephens, Joe Trotter, Chris Wheat, Gwendolyn L. Wright

The Parent Trap

The Parent Trap
Author: Nate G. Hilger
Publisher: MIT Press
Total Pages: 306
Release: 2023-04-04
Genre: Political Science
ISBN: 0262545942

How parents have been set up to fail, and why helping them succeed is the key to achieving a fair and prosperous society. A next Big Idea Club nominee. Few people realize that raising children is the single largest industry in the United States. Yet this vital work receives little political support, and its primary workers—parents—labor in isolation. If they ask for help, they are made to feel inadequate; there is no centralized organization to represent their interests; and there is virtually nothing spent on research and development to help them achieve their goals. It’s almost as if parents are set up to fail—and the result is lost opportunities that limit children’s success and make us all worse off. In The Parent Trap, Nate Hilger combines cutting-edge social science research, revealing historical case studies, and on-the-ground investigation to recast parenting as the hidden crucible of inequality. Parents are expected not only to care for their children but to help them develop the skills they will need to thrive in today’s socioeconomic reality—but most parents, including even the most caring parents on the planet, are not trained in skill development and lack the resources to get help. How do we fix this? The solution, Hilger argues, is to ask less of parents, not more. America should consider child development a public investment with a monumental payoff. We need a program like Medicare—call it Familycare—to drive this investment. To make it happen, parents need to organize to wield their political power on behalf of children—who will always be the largest bloc of disenfranchised people in this country. The Parent Trap exposes the true costs of our society’s unrealistic expectations around parenting and lays out a profoundly hopeful blueprint for reform.

Unequal We Stand

Unequal We Stand
Author: Jonathan Heathcote
Publisher: DIANE Publishing
Total Pages: 61
Release: 2010-10
Genre: Business & Economics
ISBN: 1437934919

The authors conducted a systematic empirical study of cross-sectional inequality in the U.S., integrating data from various surveys. The authors follow the mapping suggested by the household budget constraint from individual wages to individual earnings, to household earnings, to disposable income, and, ultimately, to consumption and wealth. They document a continuous and sizable increase in wage inequality over the sample period. Changes in the distribution of hours worked sharpen the rise in earnings inequality before 1982, but mitigate its increase thereafter. Taxes and transfers compress the level of income inequality, especially at the bottom of the distribution, but have little effect on the overall trend. Charts and tables. This is a print-on-demand publication; it is not an original.

The Routledge Handbook of Diversity, Equity, and Inclusion Management in the Hospitality Industry

The Routledge Handbook of Diversity, Equity, and Inclusion Management in the Hospitality Industry
Author: Ashokkumar Manoharan
Publisher: Taylor & Francis
Total Pages: 464
Release: 2023-10-13
Genre: Business & Economics
ISBN: 1000963004

Interdisciplinary in terms of both its coverage and contributions, The Routledge Handbook of Diversity, Equity, and Inclusion Management in the Hospitality Industry provides an informative and systematic guide to the current state of knowledge on workforce diversity and its management. Providing empirical knowledge and reflective practice on diversity issues and their management in the hospitality industry, this handbook includes chapters written by a plethora of experts in the diversity management (DM) field, including scholars, academics, and industry experts, such as managers from leading hospitality industry firms. Logically structured and embellished with illustrative figures throughout, the volume provides critical reviews and an appraisal of current research and the future development of conceptual and theoretical approaches to diversity, equity, and inclusion (DEI) management in the hospitality industry, including dimensions of diversity in hospitality, such as gender, cultural/ethnic, age, disability, sexual orientation, and Indigenous workers. Elucidative examples are used from different countries such as Australia, Austria, Canada, Japan, United Arab Emirates, and India, and the volume takes a solution-based approach, providing future directions for emerging diversity researchers. Global in perspective, this book is a pivotal teaching resource for academics, an illustrative reference resource for Ph.D. students and early career researchers who work on workforce diversity and a practical guide for managers and HR consultants. It will also appeal to wider audiences, including those in tourism, recreation and leisure studies, and other professional fields.

Public Policy in the Arab World

Public Policy in the Arab World
Author: Anis B. Brik
Publisher: Edward Elgar Publishing
Total Pages: 343
Release: 2024-06-05
Genre: Political Science
ISBN: 1035312697

This is an open access title available under the terms of a CC BY-NC-ND 4.0 License. It is free to read, download and share on Elgaronline.com. Public Policy in the Arab World dissects the layered social, economic, and governance issues that define the Middle East and Northern African (MENA) region. Paying special attention to the Arab Spring protests and the COVID-19 pandemic, this insightful book takes an interdisciplinary approach to examining governance capacity, legitimacy, and the challenges encountered in crisis response.