The Economist takes a look at the software that big companies are using to sort through job applicants. It finds that people who use Chrome and Firefox browsers are better employees, and people with criminal records are suited to work in call centers. One drawback to having a computer sort potential employees is that its algorithms may treat some variables as proxies for race, as discussed in our “How Much Does Your Name Matter?” podcast, in which the Harvard computer scientist Latanya Sweeney found that distinctively black names are more likely to draw ads that offer arrest records. Read More »
In many states (21, to be precise), it is perfectly legal for an employer to not hire someone who smokes. This might seem understandable, given that health insurance is often coupled to employment, and since healthcare risks and costs are increasingly pooled. And so: if employers can exclude smokers, should they also be able to weed out junk-food lovers or motorcyclists — or perhaps anyone who wants to have a baby? Read More »
A lot of people write to us looking for work — which, sadly, we are nearly always unable to provide. But once in a while we do hear of a good opportunity for the Freakonomically inclined. To wit:
The U.K. Cabinet Office’s Behavioural Insight Team — better known as the Nudge Unit because of its allegiance to the excellent Richard Thaler/Cass Sunstein book Nudge — is looking to expand. Here’s the job listing. Some relevant excerpts:
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Successful candidates will need to show that they:
1. have a good understanding of the behavioural science literature
2. have an understanding and ideally ability to conduct randomised controlled trials to test policy interventions; and
3. are highly motivated individuals capable of developing innovative solutions to often complex policy problems.
4. are strong team players
Candidates should be prepared to work on potentially any aspect of government or wider public sector policy. For example, over the past year the team has led work on health, energy, fraud, electoral registration, charitable giving, consumer affairs, the labour market, and access to finance for SMEs [that's Euro-speak for "small and medium enterprises"]
On America’s first subway, Boston’s Green line, the middle doors stopped opening. When I asked the driver to open the doors, he said that he couldn’t: now all boarding and deboarding at the above-ground stops is through the narrow front door by the fare box. Ah, the MBTA: making up for the 23 percent fare hikes on July 1 with improved service!
Me: “The new policy slows the ride for everyone. Now passengers cannot board and pay their fares until all the deboarding passengers have left.”
Driver, shrugging: “It’s the new policy. I just do what my boss tells me to do. I don’t question.”
Me: “We could use some questioning.”
Driver: “Questioning isn’t part of my job. I just wait for my pay day.” Read More »
Here’s a fascinating new working paper from Yale economist David G. Atkin, called “Endogenous Skill Acquisition and Export Manufacturing in Mexico” (abstract here; PDF of an earlier version here). The gist:
This paper presents empirical evidence that the growth of export manufacturing in Mexico during a period of major trade reforms, the years 1986-2000, altered the distribution of education. I use variation in the timing of factory openings across municipalities to show that school dropout increased with local expansions in export manufacturing. The magnitudes I find suggest that for every twenty jobs created, one student dropped out of school at grade 9 rather than continuing through to grade 12. These effects are driven by the least-skilled export-manufacturing jobs which raised the opportunity cost of schooling for students at the margin.
It makes sense, of course, that students on the margin might happily abandon school in favor of a good job. But is that necessarily a bad thing? How should a society balance jobs and educational ambition? And who should be thinking harder about this issue — India or China? Or perhaps the U.S.? Read More »
There are two broad shifts that account for much of this decline: globalization and computerization. From T-shirts to toys, manufacturing jobs have migrated to low-wage countries like Vietnam, Bangladesh, and of course China. Meanwhile, many of the tasks that might have been done by middle-income Americans employed as bookkeepers or middle managers have been replaced by spreadsheets and data algorithms.
Fisman argues that in order to succeed in the new economy, American workers need to shift away from construction and manufacturing jobs to “high touch” professions. “If jobs are being lost to low-wage Indians and computer programs, then what today’s worker needs is a set of skills that offers the personal touch and judgment that can’t be provided by a machine or someone 12 time zones away,” writes Fisman.
“Audit studies” have been popular in labor economics research for 10 years. The researcher sends resumés of artificial job applicants in response to job openings. Typically there is a crucial difference in some characteristic of the person that indicates a particular racial/gender/ethnic or other group to which one person within a pair of resumés belongs while the other does not. The differential response of employers to the difference in the characteristic implied by the resumés is taken as a measure of discrimination in hiring.
Is this ethical? Read More »
We recently solicited your questions for Alan Krueger, chairman of the President’s Council of Economic Advisers. Below are Krueger’s answers, in which he talks about the Bush tax cuts, the American Jobs Act, and why NFL coaches should go for it on fourth down. Thanks to everyone for participating.
Q. The recovery from the recent recession has been great for corporate profits, but not so great for employment. I think that this is a natural result of the fact that when demand is insufficient, corporations focus on improving productivity rather than on producing more goods and services.
What can be done to increase employment? -Adam Read More »