Tuesday, May 28, 2024

Negative Effects Of Estate Tax: Decreases Our Standard Of Living By Lowering Savings And Investments Through Over-Consumption: Reprint With 7 Minute Video

Reprint below of my October 27, 2011, blog post, "Estate Tax Decreases Our Standard Of Living Through Over-Consumption And Lower Savings And Investment:"


Thursday, October 27, 2011

Estate Tax Decreases Our Standard Of Living Through Over-Consumption And Lower Savings And Investment

Video of Steve Landsburg, professor of economics at the University of Rochester, about research on the estate tax.

The estate tax causes over spending, lowers investment and savings, and decreases gains to our well-being and standard of living.


(HT: Businomics Blog, Bill Connerly, PhD)

Thursday, May 23, 2024

Childbearing Increases Women’s Unemployment Gap, As Countries Develop, Incomes Rise, And Economies Transition From Farming To Industry And Services Salaried Work

From NBER, The Digest, "Global Evidence on Childbearing and Women’s Employment," Summary of Working Paper 31649:

Source: NBER, The Digest

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As incomes rise and economies transition from subsistence farming toward salaried work in industry and services, childbearing has a larger negative effect on women’s employment.
From "The Child Penalty Atlas" by Henrik Kleven, Camille Landais, and Gabriel Leite-Mariante, NBER Working Paper No. 31649, August 2023, Revised February 2024:

ABSTRACT
This paper builds a world atlas of child penalties in employment based on micro data from 134 countries. The estimation of child penalties is based on pseudo-event studies of first child birth using cross-sectional data. The pseudo-event studies are validated against true event studies using panel data for a subset of countries. Most countries display clear and sizable child penalties: men and women follow parallel trends before parenthood, but diverge sharply and persistently after parenthood. While this pattern is pervasive, there is enormous variation in the magnitude of the effects across different regions of the world. The fraction of gender inequality explained by child penalties varies systematically with economic development and proxies for structural transformation. At low levels of development, child penalties represent a minuscule fraction of gender inequality. But as economies develop — incomes rise and the labor market transitions from subsistence agriculture to salaried work in industry and services — child penalties take over as the dominant driver of gender inequality. The relationship between child penalties and development is validated using historical data from current high-income countries, back to the 1700s for some countries. Finally, because parenthood is often tied to marriage, we also investigate the existence of marriage penalties in female employment. In general, women experience both marriage and child penalties, but their relative importance depends on the level of development. The development process is associated with a substitution from marriage penalties to child penalties, with the former gradually converging to zero.

Monday, May 13, 2024

US Unemployment And Labor Force Charts By Education Level From CalculatedRisk

From CalculatedRisk, "Trends in Educational Attainment in the U.S. Labor Force" by Bill McBride, Sunday, May 12, 2024:
The first graph shows the unemployment rate by four levels of education (all groups are 25 years and older) through April 2024.
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Clearly education matters with regards to the unemployment rate, with the lowest rate for college graduates at 2.2% in April, and highest for those without a high school degree at 6.0% in April.
Source: CalculatedRisk
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This brings up an interesting question: What is the composition of the labor force by educational attainment, and how has that been changing over time?

Here is some data on the U.S. labor force by educational attainment since 1992.
Source: CalculatedRisk
Currently, over 64 million people (25 and over) in the U.S. labor force have a bachelor's degree or higher.

This is over 44% of the labor force, up from 26.2% in 1992.