Data Source

According to the most recent Statistics Canada data, in 2012, women over 40 gave birth to 13,395 children, while teenagers produced 12,915. Demographers have been expecting this tipping point for decades. In 1974, the older age group gave birth to just 3,550 children while teenagers produced 38,650—and the numbers have shifted each year since. The transition has just been confirmed in the U.K. and Australia as well, while data show that men are also fathering children later in life: the average age of Canadian fathers at birth of their children was 41 in 2011, compared to 39 in 1995.

That is from Meagan Campbell.  On another issue, Ian Bremmer calls this the best Canada fact he’s seen all year.

Given how much Donald Trump talks about jobs leaving America, you might think that his supporters lost out more than others. In fact, the opposite appears to be true, according to a recent analysis from Gallup.

“No matter how you measure it, there’s not any evidence that Trump supporters are more likely to have lost their job in the manufacturing sector,” Gallup senior economist Jonathan Rothwell said in a call.

The study, which analyzed how various factors predict voters’ support for the Republican presidential nominee, linked living in a manufacturing-dominated area with a 1% lower probability of supporting Trump (after controlling for race, income, and other variables).

Living in a low-manufacturing area was linked to a 1% higher probability of supporting Trump.

That is from Gus Lubin at Business Insider.

Though online technology has generated excitement about its potential to increase access to education, most research has focused on comparing student performance across online and in-person formats. We provide the first evidence that online education affects the number of people pursuing formal education. We study the Georgia Institute of Technology’s Online M.S. in Computer Science, the earliest model to combine the inexpensive nature of online education with a highly-ranked degree program. Regression discontinuity estimates exploiting an admissions threshold unknown to applicants show that access to this online option substantially increases overall enrollment in formal education, expanding the pool of students rather than substituting for existing educational options. Demand for the online option is driven by mid-career Americans. By satisfying large, previously unmet demand for mid-career training, this single program will boost annual production of American computer science master’s degrees by about seven percent. More generally, these results suggest that low-cost, high-quality online options may open opportunities for populations who would not otherwise pursue education.

That is from a new NBER paper by Joshua Goodman, Julia Melkers, and Amanda Pallais.  And here is a new NBER paper by Deming, Lovenheim, and Patterson: “Our results suggest that by increasing competitive pressure on local schools, online education can be an important driver of innovation and productivity in U.S. higher education.”

Fewer people are watching:

Revenue is up, but audiences are down in New York City’s dance industry, a new study of the field finds.

A 20% decrease in the number of paid attendees at live performances emerged in the study, to be released Friday by the advocacy group Dance/NYC. The study looked at 172 dance organizations over a six-year period.

The audience decline appears to have been led by drops at the largest organizations, those with budgets of more than $5 million.

That is from Pia Catton at the WSJ.

The world’s highly skilled immigrants are increasingly living in just four nations: the U.S., U.K., Canada and Australia, according to new World Bank research highlighting the challenges of brain drain for non-English-speaking and developing countries.

I don’t think we have thought through well enough the final equilibrium here.  English will be the global language for a long, long time to come, and China will remain robust as a major source of indigenous talent.  A lot of Chinese could leave and there would still be a lot of smart Chinese around in China.  I do fear, however, for the politics in this semi-cosmopolitan but not cosmopolitan enough Anglo-American world in the making…

That is from Adam Creighton at the WSJ.

Single quarter jobs

by on October 19, 2016 at 1:27 pm in Data Source, Economics | Permalink

We find that the decline in these jobs accounts for about a third of the decline in the fraction of the population that holds a job in the private sector that occurred from the mid-2000s to the early 2010s.

Here is the full paper, by Henry R. Hyatt and James R. Spletzer, via the excellent Kevin Lewis.

A small number of people complain a lot about the airports.

As for the noise complaints about National Airport, two individuals at one residence in NW D.C. made 6,852 complaints, 78% of the total number of noise complaints.

Here is the study by Eli Dourado and Raymond Russell.

Authoritarian leaders are seen as far more trustworthy than politicians in more openly democratic countries across the emerging world, according to data compiled by the World Economic Forum.

Leaders in Singapore, the Gulf states and Rwanda are rated as having the highest ethical standards in the emerging markets, closely followed by their Chinese and central Asian counterparts.

In contrast, politicians in democracies such as Brazil, Paraguay, Nigeria, Mexico and Romania are seen as exhibiting the lowest ethical standards.

“It does look counterintuitive,” says Thierry Geiger, head of analytics and quantitative research at the WEF, which has polled local and expatriate business communities in 138 countries on the issue since 2007 as part of its annual Global Competitiveness Report.

One of the biggest losers in the WEF’s “trust in politicians” ranking over this period has been Tunisia, widely regarded as the sole success story of the 2011 Arab uprisings. Its politicians were ranked as the 15th most trustworthy in the world in 2010, before the overthrow of President Zein al-Abidine Ben Ali. Under democratic rule, the country has fallen to 63rd.

Other countries that saw sharp falls in the ranking include the democracies of South Africa, Barbados, South Korea, Iceland, Cyprus and Spain.

Overall, among the 20 emerging market countries rated as having the most trustworthy politicians in the 2016 survey, 13 are rated as “not free” by Freedom House, a US government-funded non-governmental organisation, with three classed as partly free and just four classed as free.

Among the 20 emerging markets whose politicians are seen as having the lowest ethical standards, not one is classed by Freedom House as not free, with six free and 14 partly free.

That is from Steve Johnson at the FT.

We find that the wage differential between formal/regulated and informal/unregulated sectors increased after 2008. Moreover, while wages in the informal sector decreased by about 20% in 2008-13, wages in the formal sector virtually did not fall. This is consistent with the view of a substantial downward stickiness of wages in the regulated labour market. Importantly, before the recession, wages in the formal and informal sectors moved in parallel (with a 15% premium in the formal sector) – confirming the validity of the parallel trends assumption essential for our difference-in-differences methodology, and showing that both regulated and unregulated labour markets have a similar degree of upward flexibility of wages.

We also look at the employment changes in the two sectors. We find that in 2008-2013, employment in the formal labour market fell by 16%. At the same time, employment in the informal labour market did not vary – if anything, it increased slightly (by 1.6%), although the change is not statistically significant. This finding is fully consistent with the conventional narrative – the downward rigidity of formal wages result in formal workers losing jobs or moving to the informal sector.

That is from Sergei Guriev, Biagio Speciale, Michele Tuccio, more data and discussion at the link.  I would note, however, that the formal and informal sector differ in ways other than just their degree of regulation.  When labor contracts are truly short-term, and there is less morale-building in the enterprise, wages may be less sticky for non-legal reasons.  And those are the firms most likely to end up in the informal sector.  Still, there is an interesting and striking contrast.

In 1980, 66% of high-skilled men worked in cognitive occupations. Over the next 20 years, this proportion fell by 3 percentage points (pp) to 63%. Interestingly, this fall in the probability of working in a COG job was accompanied by a 3 pp rise in the fraction of college educated men not working (unemployed or out of the labor force).

That is from recent research by Cortes, Jaimovich, and Siu (pdf).  You will note that the chance of a woman working in those jobs rose over the same period, even though the supply of educated women relative to the supply of educated men went up a great deal over that same time period.  They find that the increasing importance of “female-oriented” social skills is a major reason for why women have so increased their presence in cognitive occupations.

Similar claims are very much a theme in my last book, Average is Over, so I am happy to see them verified in a more definitive manner.

A large share of American men between the ages of 25 and 54 who aren’t in the labor force may suffer from serious health conditions that are “a barrier to work” and suffer physical pain, sadness, and stress in their daily lives, according to research being presented next week by Princeton University labor economist Alan Krueger.

“Nearly half of prime age NLF [not-in-the-labor-force] men take pain medication on a daily basis, and in two-thirds of cases, they take prescription pain medication,” according to Krueger’s paper, Where Have All the Workers Gone?

Here is more from Peter Coy.  Here is the paper.

That is my latest Bloomberg column, here is the introductory section:

The richest Americans are much less likely to have inherited their wealth than their counterparts in many supposedly more egalitarian countries. They’re not remarkably rich in degrees from elite universities. Rich Democrats have more social connections than rich Republicans.

These are some surprising insights from a new study of the very wealthy by Jonathan Wai of Duke University and David Lincoln of Wealth-X, based on data on 18,245 individuals with a net worth of $30 million or more.

The study portrays high-net-worth individuals as a more idiosyncratic and diverse group than reductionist cliches about “the 1 percent” might suggest.

Looking globally, extreme wealth is most closely connected to elite education in South Korea, Chile, and South Africa, and least so in Ukraine and Qatar. The U.S. is near the bottom of the top third of the country rankings for the tightness of this connection. Germany is close to the bottom, reflecting how German paths to riches run through forms of manufacturing and medium-sized business that are not so closely tied to elite higher education.


For all the talk of Sweden and Austria as relatively egalitarian societies, they are also the countries where the greatest proportion of high-net-worth individuals inherited their wealth: 43.8 percent and 49.6 percent, respectively. In the U.S., inherited wealth accounts for only 12.6 percent of the very wealthy individuals in the study’s sample.

There is much more at the link.

Reductions in entry costs allow producers to “take more draws,” and given the unpredictability of quality at the time of investment, taking more draws can generate more “winners.”  Our illustrative estimates for music show that the production mechanism could generate almost 20 times as much benefit as the consumption mechanism for an equal-sized increase in the number of products.

That is from a new working paper by Luis Aguiar and Joel Waldfogel, @pmarca oh we miss ye I bet you would have retweeted this.

Our quantitative results suggest that both corrections are nonnegligible: trade-induced increases in inequality of disposable income erode about 20% of the gains from trade, while the gains from trade would be about 15% larger if redistribution was carried out via non-distortionary means.

That is part of a new paper from Pol Antràs, Alonso de Gortari, and Oleg Itskhoki, via Justin Wolfers.

Julianna Dubendorff & Andrew Luchner

Psychology of Religion and Spirituality, forthcoming

Research into prejudice toward atheists has generally focused on broad characteristics. Some of these characteristics (i.e., self-centeredness, elitism, individualism, and immorality) indicate a possible prejudice of narcissism. To investigate this specific prejudice, the present study used the Narcissistic Personality Inventory (Raskin & Terry, 1988), the Hypersensitive Narcissism Scale (Hendin & Cheek, 1997), and the Interpersonal Reactivity Index (Davis, 1983), which were adjusted so that the items of each measure were changed from first-person statements to third-person statements to measure participants’ perceptions. Participants (N = 359) were given a description of a fictitious individual named Alex, portrayed to them as either male or female and atheist or religious, or male or female with no additional information (creating 6 experimental groups), and then asked to complete the measures as they thought the individual would. Participants consistently rated atheists higher on narcissism measures and lower on empathy measures, indicating a perception of greater narcissism and a lack of empathy compared with religious individuals and controls. Participants’ perceptions of Alex were affected by his or her gender in conjunction with his or her religion, and the 2 variables of gender and religion interacted to create different patterns of perception. In general, interactions indicated differences in the way religion and gender impacted the perception of individuals as narcissistic, affecting perceptions of males more than females. The results are consistent with research findings that perceptions of atheists tend to be negative and prejudicial. This study highlights the need to compare perceptions with actual personality differences between atheists and religious individuals.

That is from the excellent Kevin Lewis.  I would like to see this done cross-culturally, including for Israel and also the former Communist states.  How about Vatican City too?