Bryan Caplan and David Henderson

Human Capital: Returns to entrepreneurs, skills, etc.

A Category Archive (45 entries)

Reynolds on Summers and Piketty

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
My copy of Thomas Piketty's book, Capital in the 21st Century, sits unopened. I plan to read it in June for a review that's due at the end of June. Meanwhile, though, I've been reading lots of reviews and comments... MORE

Piketty's Dodge on Inequality

Income Distribution
David Henderson
New York Times economics columnist Eduardo Porter recently interviewed economist Thomas Piketty on his work on income and wealth inequality. Piketty, in case you haven't followed, has been documenting the increase in income and wealth inequality in the richer countries,... MORE

Friday Night Video: Good Advice from Ashton Kutcher

Economics and Culture
David Henderson
Yes. You read that right. Here's the link. It's less than 5 minutes long. It's advice for young people, but it's good advice for everyone. HT to Bob Murphy.... MORE

What To Do With What You Did Over Your Summer Vacation (2013 Edition)

Human Capital: Returns to entrepreneurs, skills, etc.
Art Carden
Over the weekend, I spoke at the IHS Scholarship and a Free Society seminar at Chapman University. This week, I spoke and helped lead discussions at the Intercollegiate Studies Institute's American Freedom Institute. At the end of May and beginning... MORE

Abrams on Investing

Finance: stocks, options, etc.
David Henderson
I was introduced to the stock market when I was 13. I had a bar mitzvah and my father bought me ten shares of something called Bayuk Cigar. I was outside playing stickball, came in for dinner, and my father... MORE

John Kay on Manufacturing Fetish

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
UPDATE BELOW The rear cover of the iPhone tells you it is designed in California and assembled in China. The phone sells, in the absence of carrier subsidy, for about $700. Purchased components - clever pieces of design such as... MORE

"You Didn't Build That"

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
I just read the best thing I've read so far on Obama's now-famous line, "You didn't build that." It's by Rachael Larimore, the managing editor of Slate. I recommend that you read the whole thing. I think she's put her... MORE

The Latest Batch from the NBER

Cross-country Comparisons
Arnold Kling
1. Robert J. Barro writes, Convergence at a 2% rate implies that it takes 35 years for half of an initial gap to vanish and 115 years for 90% to disappear. Convergence-rate parameters are important to pin down because they... MORE

Enrico Moretti on Mobility

Growth: Causal Factors
Arnold Kling
Interviewed by Nick Schulz, he says, In total, almost half of college graduates move out of their birth states by age 30. Only 27 percent of high school graduates and 17 percent of high school dropouts do so. It is... MORE

Brink Lindsey's New eBook

Books: Reviews and Suggested Readings
Arnold Kling
It is called Human Capitalism. It might be called The Age of Abundance* (*for some people). Brink is trying to thread the needle between those who view the poor as victims and those who apparently don't. (Bryan read an earlier... MORE

In January 1997, Red Herring magazine, now defunct, published a debate between Paul Krugman and me. It was titled "Does Technology Create Jobs?" Here's one of his key paragraphs: It's also true that higher profits generated by the new technology... MORE

Part-Time Jobs and Climbing Trees

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
In a comment on my post on Walter Williams's book, "liberty" writes: It seems to me that sometimes when free market individualists swoon over the benefits of gaining a work ethic, including having many jobs when young and learning from... MORE

The Top 0.1 Percent

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
Paul Krugman has a post today linking to an article in the New York Times magazine about a wealthy man named Edward Conard. In the second line of his post, Krugman writes: Because, you see, they don't spend all their... MORE

Moderate immigration reformers usually argue in favor of more skilled immigrants.  As a matter of economic efficiency, are they correct?  Suppose skilled immigrants earn $30,000 at home and $100,000 here; unskilled immigrants earn $1000 at home and $25,000 here.  Then... MORE

Moneyball

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
I'm tooling along in an American Airlines flight from JFK to SFO and I just finished watching the movie Moneyball. I had blogged about the book (here and here), but this is the first time I've actually seen the movie.... MORE

Notes on Kauffman Bloggers Forum

Economics of Health Care
David Henderson
I watched live almost all of each morning presentation today. Some highlights: 1. Ben Wildavsky's point that when talent moves from country to country and back, it's not a brain drain. He had another good expression that I forgot to... MORE

The Shifty Economy

Growth: Causal Factors
Arnold Kling
John Hagel writes, the Shift Index focuses on return on assets (ROA) for all public companies in the US since 1965. The bottom line: ROA has collapsed by more than 75% over this period. Thanks to Patri Friedman for the... MORE

Getting Rich by Solving Problems

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
One of my favorite parts of Bryan Caplan's book, The Myth of the Rational Voter, is where he talks about the importance of being able to get rich by solving problems. I remembered his statement only approximately but over the... MORE

The Economics of Cities

Economics and Culture
Arnold Kling
Edward L. Glaeser and Joshua D. Gottlieb survey the fundamental economics questions about cities, including why they exist. Cities are ultimately nothing more than proximity, so the returns to urban concentration can be seen as reductions in transport costs. ...a... MORE

Are American Doctors Overpaid?

Economics of Health Care
Arnold Kling
Sherry Glied, Ashwin Prabhu, and Norman Edelman do not think so. The value of physicians' underlying human capital is estimated by forecasting an age-earnings profile for doctors based on the characteristics in youth of NLSY cohort participants who subsequently became... MORE

Morley Safer Celebrates An Entrepreneur

Human Capital: Returns to entrepreneurs, skills, etc.
David Henderson
in this 60 Minutes segment. This joyous man, Forrest Bird, celebrates his inventions, his life, his pretty young wife, and his wealth. One of my favorite excerpts: And standing tall among them, all 6'4" of him, is Forrest Bird. His... MORE

More on U.S. Education

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Two links from Mark Thoma. First, Clive Crook. For decades the educational quality of the US labour force surged. In 1940, less than 5 per cent of the population aged 25-64 had at least a four-year college education. By 2000,... MORE

The Goldin-Katz Swindle

Economics of Education
Arnold Kling
On p. 96 of their new book, Claudia Goldin and Lawrence F. Katz provide a table on the composition of the U.S. labor force in terms of educational background, based on historical census data. The percentage of high school graduates... MORE

Marriage and Caste Watch

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Clive Crook writes, Younger cohorts are no better educated than these soon-to-retire boomers. Broadly speaking, educational quality has topped out - and on at least one measure, it is actually deteriorating. In 2006, Americans aged 55-59 collectively possessed more masters... MORE

Goldin and Katz

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
I have ordered their new book, after seeing it mentioned in David Leonhardt's column in the New York Times. An excerpt from the book is here. For cohorts born from the 1870s to about 1950, every decade was accompanied by... MORE

The New Economics of Marriage

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Betsey Stevenson and Justin Wolfers write So what drives modern marriage? We believe that the answer lies in a shift from the family as a forum for shared production, to shared consumption...the key today is consumption complementarities — activities that... MORE

The IQ Revolution?

Economic History
Arnold Kling
Gregory Clark writes, Millenia of living in stable societies, under tight Malthusian pressures that rewarded effort, accumulation, and fertility limitation, encouraged the development of cultural forms--in terms of work inputs, time preference, and family formation--which facilitated modern economic growth. This... MORE

Average vs. Marginal

Economics of Education
Arnold Kling
In the Milken Institute Review, Kevin Lang writes, Is teenage motherhood one of the means by which poverty is passed from generation to generation, or are both teenage motherhood and adult poverty consequences of the same childhood disadvantages? There are... MORE

More on Mental Health and Poverty

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Bryan wrote, When someone asks me what I would do to eliminate poverty in America, the first thing that pops into my head is the need for industry, thrift, and prudence. It seems that he and I share a common... MORE

Moral and Mental Development

Growth: Causal Factors
Arnold Kling
From my latest essay: As we get wealthier, we also become enhanced physically, cognitively, and morally, leading to a virtuous cycle of improvements to the standard of living. As the economy improves, human cognitive ability and moral reasoning improves, which... MORE

So Larry Summers was Right?

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Donna K. Ginther and Shulamit Kahn write, Children create a marked divergence between men and women. For science as a whole, the presence of a pre-kindergarten aged child lowers women’s likelihood of having a tenure track job by 8.1 percent.... MORE

Returns to Beauty

Human Capital: Returns to entrepreneurs, skills, etc.
Eric Crampton
Giam Petro Cipriano and Angelo Zago find that more attractive students in economics earn higher test scores than their less attractive counterparts, an effect that's magnified rather than attenuated in written exams when compared to oral exams. While a causal... MORE

"Summers!" "Superintendant Chalmers!"

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
Economics has hit the big time: The Larry Summers scandal has inspired the best Simpsons episode of the season! Principal Skinner puts his foot in his mouth by talking about the gender gap in mathematical ability, and hilarity ensues. Arguably... MORE

Credentialism Trap Rejoinder

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Bryan writes, If Arnold's story is right, there wouldn't really be a trap. Some firms are bound to be run by people who value profits more than pride in their alma mater. These firms will do what Arnold recommends: Hire... MORE

Credentialism versus Signaling

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
Arnold's not too happy about credentialism: I remember hearing a company founder in the Dotcom era saying that he only wanted to hire MBA's from top schools. I thought to myself that this was silly. When you are a start-up,... MORE

What Does Education Signal? Answering Arnold's Challenge

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
Arnold raises a common objection to the signaling model of education: My problem with the signalling model of education is that it suggests that there is a huge unexploited profit opportunity for employers and employees who can come up with... MORE

Mixed Signals: Why Becker, Cowen, and Kling Should Reconsider the Signaling Model of Education

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
Gary Becker, Tyler Cowen, and Arnold Kling have all recently criticized the signaling theory of education. If you haven't heard, the signaling theory says that to a significant extent, education does not increase workers' productivity. Instead, the fact that you... MORE

Are Neighborhood Effects Really Genetic Effects?

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
A new paper leads Tyler Cowen to ask: "Are Neighborhood Effects Really Family Effects?" But I'd say he's suffering from what I've called "environmental bias." Since the whole behavioral genetics literature has already found shockingly weak evidence of family effects... MORE

IQ, Algernon, and Introspection

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
There are a lot of people who take offense at the idea that people have different levels of intelligence - and even at the idea that something called "intelligence" exists. As with most controversial issues, more data is unlikely to... MORE

Grades Are So Money

Human Capital: Returns to entrepreneurs, skills, etc.
Bryan Caplan
A Typical Blog rejects my equation of grades and money in my post on pity grading. His main objections, and my replies: 1) 'Merit-based' grades seem to be a lot more merit-based than 'merit-based' wealth. All the students these professors... MORE

Too many smart people?

Labor Market
Arnold Kling
In a comment on the preceding post, Andrew Whitacre, who wrote the original rant, speculates, There are too many smart people for too few smarts-required jobs, just like there've never been enough English professorships for all the English majors who... MORE

Over-qualified?

Economics of Education
Arnold Kling
This rant struck me, mostly because it is strikingly consistent with my 22-year-old's experience. Dear current Management-Generation of Cubicle Land, please understand that: 1. My generation was misinformed—by elders and fortune—about the value of our college degrees. $120,000 of your/our... MORE

Stock Options as Tax Deferral

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Kevin Hassett thinks that stock options are used because they are a form of tax-deferred compensation. It is sensible that the tax code encourages equity compensation. Shareholders benefit when management has a significant stake in the appreciation of a firm's... MORE

Executive Compensation

Human Capital: Returns to entrepreneurs, skills, etc.
Arnold Kling
Two interesting articles in the latest Journal of Economic Perspectives. Lucien A. Bebchuk and Jesse M. Fried focus on the agency problem. Managers have an interest in compensation schemes that camouflage the extent of their rent extraction or that put... MORE

Minimum Wage and CEO Pay

Income Distribution
Arnold Kling
Marc Brazeau asks (see Steve Antler's site), Two common arguments against raising the minimum wage are possible inflationary effects and job loss. Why aren't these issues raised in relation to executive compensation? I think that the conventional wisdom is that... MORE

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