Blog postings by CEPR staff and updates on the latest briefings and activities at the Center for Economic and Policy Research.

The unemployment rate fell to 4.6 percent in November, almost equal to the pre-recession lows in 2007. However the sharp decline was partly due to people leaving the labor force, the employment-to-population ratio was unchanged at 59.7 percent. It actually fell slightly for prime-age (ages 25-54) workers, from 78.2 percent to 78.1 percent, although it is still 0.7 percentage points above its year ago level.

Most other data in the household survey was positive, most notably a drop of 220,000 in the number of people involuntarily working part-time to a new post-recession low. At the same time, those choosing to work part-time jumped by 327,000. This is likely a dividend of the Affordable Care Act with workers now having the option to get insurance through the exchanges so that they don't need full-time jobs to get insurance through an employer. This number is now up by almost 2.2 million from December 2013, the month before the exchanges came into existence.

Job growth for the month was 178,000, roughly in line with expectations. The average hourly wage reportedly fell 3 cents in November after a sharp jump reported for October. This is likely due to measurement error, but it does undermine the case for accelerating wage growth. Wages have risen by 2.5 percent over the last year. When we factor in the shift from non-wage to wage compensation (mostly a reduction in health care benefits), this means there is essentially no evidence of wage acceleration whatsoever.

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As a prelude to CEPR’s upcoming Blue-Collar Jobs Tracker, this post provides an overview of manufacturing jobs in Illinois, Indiana, Michigan, Minnesota, Ohio, and Pennsylvania from 1990 until the present. In all these states the amount of manufacturing jobs has declined since 1990.

However, losses were more severe in some states than in others. Over a third of manufacturing jobs were lost in Pennsylvania, Michigan and Ohio. In Minnesota and Indiana the losses were somewhat lower, with a 7 percent and 14 percent decline, respectively.

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The following reports on labor market policy were recently released:

Center for Law and Social Policy

Improving Connections to Student Aid
Lauren Walizer

Urban Institute

Improving the Efficiency of Benefit Delivery
Julia B. Isaacs, Michael Katz, Ria Amin

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Jeff Hauser runs the Revolving Door Project, an effort to increase scrutiny on executive branch appointments and ensure that political appointees are focused on serving the public interest, rather than personal professional advancement.

There is belated but considerable press attention to Donald Trump’s nearly inextricable conflicts of interest: He and his family run a complex, far-flung, non-public company that largely relies on his name as a branding asset.

Entities without America’s public interest in mind, be they foreign or domestic companies, are already beginning to cultivate the Trump family. Ivanka Trump, groomed to run the family business in something that will be a blind trust only in the most Orwellian sense imaginable, is being included in meetings with international leaders potentially useful to “The Trump Organization.”

And Trump has encouraged them, telling the New York Times, "The law's totally on my side, the president can't have a conflict of interest."

It’s…not good.

But lest one be wholly distracted by familial self-dealing and assessing the various problems posed by the role of son-in-law Jared Kushner

Or wound up about former Speaker of the House Newt Gingrich planning to be a “sort of be a senior planner” in the Trump administration while serving as “a senior adviser at Dentons, the law and lobbying giant.”

There’s more. Two giants of the shadow banking field are exerting enormous influence and potentially making billions by virtue of their close ties to Electoral College winner Donald Trump. Trump appears poised to make Crony Capitalism Great (in scale) Again.

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In 2007, before the Great Recession, the unemployment rate was 4.6 percent. The employment rate ― the percentage of all Americans age 16 and older who had a job ― was 63.0 percent. By 2010, the unemployment rate had risen to 9.6 percent, and the employment rate had dropped to 58.5 percent. Since then, a weird thing has happened. Although unemployment has fallen back to 4.9 percent ― just 0.3 percentage points above the 2007 average ― the employment rate has remained stubbornly low.

Looking at the data more closely, it is clear what is driving these seemingly incompatible trends: people are dropping out of the labor force. In order to be counted as unemployed, a prospective worker must have “actively looked for work in the prior 4 weeks.” This means that if someone has been searching for work for a long period of time, but has become dissatisfied with their job prospects and hasn’t applied for any jobs over the past month, he or she is no longer counted as “unemployed.” Instead, that person will be counted as “not in the labor force,” a classification that covers people who are neither employed nor unemployed. The share of the population not in the labor force has risen from about 34 percent in 2007 to over 37 percent today.

If the long-term unemployed drop out of the labor force due to discouragement over their job prospects, employment is a more useful measure than unemployment. However, the overall employment rate doesn’t adjust for the changing age distribution of the population; with more Americans hitting retirement age, we expect employment to fall not because workers have relatively few job opportunities, but simply because people in their sixties, seventies, and eighties prefer retirement to work.

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In the summer of 1996, the Los Angeles Times was warning its readers about “the shadow of rising inflation” [1] looming over U.S. financial markets “like the mammoth alien spacecrafts of Independence Day,” the blockbuster movie of the time. The article suggested the danger of inflation was imminent and concluded that “for the shell-shocked bond market, there will be an assumption that either the Fed is going to tighten credit, or inflation is going to continue to rise, or both.”

The general consensus in 1996 was that the economy was at, or very close to full employment. Unemployment was at its lowest level in years, which was about 5.4 percent. In their outlook for 1996–2000, the Congressional Budget Office (CBO) estimated the non-accelerating inflation rate of unemployment (NAIRU) was 6 percent. The CBO also warned that “if rapid growth continues, inflationary pressures will mount.”

Martin Feldstein, then President of the National Bureau of Economic Research, expressed his concern with unemployment being too low as early as March 1995. Feldstein stated that while “people have argued that we can tolerate much lower interest rates than in past U.S. historical experience,” he did not “think that’s true.” Feldstein declared the unemployment rate of 5.4 percent as being “well below the unemployment rate that even the Congressional Budget Office (CBO) would call full employment” and urged the Fed to severely tighten monetary policy. Feldstein estimated NAIRU at 6.23 percent and concluded that the possibility of being wrong was “quite low.”

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Jeff Hauser runs the Revolving Door Project, an effort to increase scrutiny on executive branch appointments and ensure that political appointees are focused on serving the public interest, rather than personal professional advancement.

As we hear of a settlement in the “Trump University” civil fraud case brought in part by New York State Attorney General and learn more and more about potential Treasury Secretary Steven Mnuchin, the phrase “personnel is policy” takes on an unfortunate new meaning.

Will Trump’s appointees to high government office ensure Donald Trump does not use control of the executive branch to enrich himself and his family?

Trump enriching himself as president is not an idle or libelous question. Trump himself raised the prospect in 2000 to Fortune Magazine, telling them that “[i]t’s very possible that I could be the first presidential candidate to run and make money on it.”

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A common argument for the decline in employment in recent years is that more workers are dropping out of the labor force to live off public benefits, particularly Social Security Disability Insurance (SSDI). SSDI is a program that provides cash benefits and healthcare to former workers who become too disabled to continue at their jobs. The average benefit payment is about $15,000 per year, and workers must have an extensive work history in order to qualify.

While the percentage of the workforce receiving disability benefits has increased since 2000, much of this rise is simply due to demographics, most importantly the aging of the population.[1] Figure 1 shows the unadjusted SSDI beneficiary rate and a second rate that has been adjusted for the age and gender composition of the labor force. [2,3]

Figure 1

buffie 2016 11 16 1

SSDI is actually one of two major programs benefiting disabled workers. The other is Workers’ Compensation (WC), a privately-run insurance system for workers who get injured at their jobs and are unable to continue working. While there are some differences between WC and SSDI, the two programs are broadly similar. Moreover, previous CEPR research indicates that they function as substitutes: when enrollment goes up for WC, it goes down for SSDI, and vice versa.

Over the past twenty years, many states have made significant cuts to their WC programs. Benefits have declined, as have the number of injuries covered by WC. Not surprisingly, these cuts have coincided with a decline in the number of WC beneficiaries and a proportionate increase in the number of SSDI beneficiaries.[4]

If the number of beneficiaries in these two programs is combined, there is almost no change from 2000 to 2011 in the percentage of the workforce getting benefits. (Our data on WC recipients only go through 2011.) Furthermore, if we include the impact of changing demographics on the number of SSDI beneficiaries, the share of the workforce receiving benefits has actually declined, as shown in Figure 2.[5,6] (Note that the age- and sex-adjustment only applies to the number of workers receiving SSDI, as the data on WC beneficiaries do not include demographic breakdowns.)

Figure 2

buffie 2016 11 16 2

In short, there has been no increase in the share of the SSDI-eligible population living off some form of disability benefits over this period. Moreover, there has actually been a drop if we take into account the impact of changing demographics.

Finally, it is worth mapping the trend depicted in Figure 2 onto more recent years. Unfortunately, as stated earlier, our data on the number of WC recipients only go through 2011. Figure 3-1 shows the number of WC and SSDI beneficiaries as a share of the SSDI-eligible population from 2000 to 2015; for the years 2012 through 2015, it is assumed that either the number of workers receiving WC benefits (the dashed line) or the percentage of workers receiving WC benefits (the dotted line) hasn’t changed since 2011. If one of these assumptions is true, then the share of the workforce receiving some form of disability benefits would’ve fallen between 0.14 and 0.31 percentage-points between 2000 and 2015.[7]

Figure 3-1

buffie 2016 11 16 3

But the assumption made in Figure 3-1 is likely too generous; after all, the number of WC beneficiaries fell every single year between 2000 and 2011. Figure 3-2 shows the number of WC and SSDI beneficiaries as a percentage of the SSDI-eligible population under the assumption that the number (the dashed line) or share (the dotted line) of WC recipients continued falling at the same rate from 2011-2015 as during the previous 11 years. Using this set of assumptions, the share of the workforce receiving either WC or SSDI would’ve fallen 0.93 to 1.01 percentage-points.

Figure 3-2

buffie 2016 11 16 4

The number of workers receiving disability benefits has fallen over the past 15 years, though we can’t say by how much. The decrease may be comparable to a rounding error (0.14 percentage-points), or it may be rather large (1.01 percentage-points). But even if we don’t know the size of the decrease, we can be certain that at least some decrease has occurred – and this should put a real dent in the “SSDI recipients as takers” argument. Prominent conservative pundits have argued that the drop in employment since 2000 is driven in large part by the fact that more Americans are choosing to take disability benefits rather than work. Those who use this argument are engaging in serious cherry-picking: they are highlighting the program with rising enrollment (SSDI) while ignoring the program with declining enrollment (WC). When both programs are examined together, there is no apparent increase in the number of Americans receiving benefits.


[1] Another source of rising SSDI enrollment is the increase in Social Security’s “full retirement age”. When SSDI beneficiaries hit full retirement age, they stop receiving SSDI benefits and start receiving normal Social Security retirement benefits. This means that the one-year increase (from 65 to 66) in Social Security’s full retirement age has kept many disabled workers on SSDI for an extra year. Between 2000 and 2014, the number of 65-year-old SSDI beneficiaries went from zero to 467,000; this accounts for 11.9 percent of the increase in SSDI beneficiaries during this time.

[2] An extensive work history is required in order to become eligible for SSDI benefits. For a full description, see pg. 20-21 of this CEPR report, “Benefits Planner: Social Security Credits” at the Social Security Administration (SSA) website, and this SSA pamphlet. The SSDI beneficiary rate is calculated by dividing the number of SSDI recipients by the number of people eligible for benefits.

[3] The demographic adjustment is based on data presented in Table V.C5 on page 141 of the 2016 Social Security Trustees’ Report.

[4] To determine the number of WC beneficiaries, data are drawn from two sources: the Annual Statistical Bulletin published by the National Council on Compensation Insurance (NCCI), and various annual reports on WC published by the National Academy of Social Insurance (NASI). NCCI’s Annual Statistical Bulletin provides data, by state, on the number of WC beneficiaries per 100,000 covered workers. By combining NCCI’s data with NASI’s data on the number of covered workers, we are able to determine the number of WC beneficiaries in each state in any given year. However, because NCCI’s data do not cover North Dakota, Ohio, Washington (state), West Virginia, and Wyoming, it is assumed that the take-up rate among covered workers in those states is the same as the average take-up rate for workers in the other 45 states and DC.

[5] The number of workers taking some form of disability benefits is less than the sum of “WC beneficiaries plus SSDI beneficiaries”. This is because a small number of people – between 361,000 and 401,000 per year between 2000 and 2011 – actually receive benefits from both programs. In order to not double-count people benefiting from both WC and SSDI, the number of people receiving some form of benefits is calculated as follows: (WC Beneficiaries) + (SSDI Beneficiaries) – (Dual Beneficiaries) = (Total Number of Beneficiaries).

[6] Data on the number of dual beneficiaries for the years 2000-2002 are drawn from the 2001, 2002, and 2003 NASI reports on WC coverage. Unfortunately, beginning with NASI’s 2004 paper, the reported number of dual beneficiaries includes people utilizing a third (relatively minor) disability program known as “public disability benefits”. Therefore, post-2002 data come from the Social Security Administration’s Annual Statistical Reports on the Social Security Disability Insurance Program. The number of dual beneficiaries is drawn from Table 31. Because Table 31 includes SSDI dual beneficiaries whose second disability program can be either WC or public disability benefits, the number of WC-SSDI dual beneficiaries is calculated as follows:

All workers receiving both WC and SSDI (lines 7-12) are included;

All workers receiving both SSDI and public disability benefits (lines 13-16) are excluded;

All workers receiving WC, SSDI, and public disability benefits (lines 17-20) are included;

For workers listed in lines 21-23, it is assumed that the same percentage of these workers receive both SSDI and WC as was divined from lines 7-20;

All workers with pending WC or public disability benefit applications (line 24) are excluded, since they are not receiving benefits at the time.

This formula gives us a close approximation for the number of WC-SSDI dual beneficiaries for each year from 2005 to 2011. However, because estimates are not available for 2003-2004, there is a gap in the data on dual beneficiaries for those two years. The number of dual beneficiaries for both 2003 and 2004 was determined by a process of linear interpolation linking the 2002 NASI data with the 2005 Social Security Administration data.

[7] For the year 2012, the number of dual beneficiaries is calculated according to the methodology outlined in footnote number six.  However, beginning in 2013, the Social Security Administration changed how it presents data on the number of dual beneficiaries. For the years 2013-2015, the number of dual beneficiaries (as determined from Table 31) has been calculated as follows:

All workers receiving both WC and SSDI (lines 9-12) are included;

All workers receiving both SSDI and public disability benefits (lines 14-16) are excluded;

All workers receiving WC, SSDI, and public disability benefits (lines 17) are included;

For workers listed in lines 18 and 20, it is assumed that the same percentage of these workers receive both SSDI and WC as was divined from lines 9-17;

All workers with pending WC or public disability benefit applications (line 21) are excluded, since they are not receiving benefits at the time.

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Private equity’s popularity among pension plans — still the largest source of investments in private equity funds — owes much to the fabled returns the industry earned in its glory days. Private equity (PE) firms claim that investing in their funds is the path to high returns and a secure retirement for pension plan beneficiaries. Returns over the last 10 years, however, have been disappointing. Research by leading finance economists demonstrates that the median private equity fund launched since 2006 has failed to beat the stock market. PE investors could have done as well investing in a stock market index fund without having to tie their money up for 10 years and without the lack of liquidity, lack of transparency and high fees of private equity.  

How does private equity manage to pull the wool over the eyes of supposedly sophisticated limited partner investors in PE funds — not just pension plans but insurance companies and university and foundation endowments? One part of the answer is that the private equity industry employs a flawed yardstick — the internal rate of return or IRR — to measure its performance. While this measure has been discredited by leading finance professors and discarded by them in favor of a truer measure of performance [1], the IRR has the virtue from the industry’s point of view that it exaggerates returns. This, however, is not its only virtue.

As PE firms have long known, the IRR is a mathematical algorithm that is easy to manipulate. For example, a PE fund that requires its highly indebted portfolio companies to sell junk bonds and take on even more debt in order to pay a dividend to investors in the fund in the first few years of the fund’s life will be rewarded with a boost to its IRR that bears little relation to what investors will ultimately receive. And that’s not the only trick PE firms use. Selling a profitable portfolio company early in the fund’s life will also goose returns as measured by the IRR even if holding onto the company and selling it later at a higher price would have increased the actual returns investors receive. But in the current low PE performance environment, these tricks may no longer raise the IRR sufficiently to make risky investments in PE look attractive.

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Workers in the United States trail other high-income countries in the Organization for Economic Co-operation and Development (OECD) in terms of work-life balance. The U.S. tops the list in terms of yearly hours worked and falls significantly behind other countries when looking at efforts to improve work-life balance.

The European Union (EU) explicitly forbids an employer to hire workers for a regular workweek of more than 48 hours. There is no equivalent restriction in the United States. While this restriction doesn’t limit hours of workers who hold more than one job or are self-employed, it is indicative of the general attitude on work-life balance in the EU.

 

mb hours worked 2016 11 08 1

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The following reports on labor market policy were recently released:


Center for American Progress

A Fair Shot for Millennial Women and Families
Sunny Frothingham


Institute for Women’s Policy Research

Supportive Services in Job Training and Education: A Research Review
Cynthia Hess, Yana Mayayeva, Lindsey Reichlin, Mala Thakur


Urban Institute

Validation of the Employment Retention Inventory
Jennifer Yahner, Ellen Paddock, Janeen Buck Willison

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The October jobs report provides solid evidence that the labor market is improving for most of the labor force. While the pace of job growth slowed slightly to 161,000, there was an increase in the prime-age employment rate (ages 25-54) and an uptick in the pace of wage growth. It appears that workers are taking advantage of a tighter labor market to move into better paying jobs.

The employment-to-population (EPOP) ratio for prime age workers rose 0.2 percentage points to 78.2 percent. This is the highest it has been in the recovery, although it is still 2.0 percentage points below the pre-recession peak and 3.7 percentage points below its 2000 peak.

Other data in the report were clearly positive. Wage growth appears to have accelerated modestly. The average hourly wage over the last three months increased at a 2.9 percent annual rate compared to its average over the prior three months. Over the last year, the average hourly wage is up 2.8 percent.

This is consistent with a story where workers are looking for better paying jobs. In this respect, it is worth noting that the share of unemployment due to voluntary quits rose 0.9 percentage points to 12.1 percent. This is the highest level for the recovery and comparable to the pre-recession rates, although still more than 3.0 percentage points below the 2000 peaks.

Also consistent with this view is the fact that lower paying industries were not sources of big job gains in October. Restaurants added just 9,900 jobs in October, compared to an average of 21,000 over the last year. Retail actually lost 1,100 jobs in the month.

On the whole, this report indicates that the labor market is getting into a situation where most workers can benefit from the economy's growth.

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With open enrollment for health insurance exchanges for 2017 starting soon, the news has been saturated with articles on exploding rates. However, after accounting for the subsidies individuals are eligible for through the Affordable Care Act, a close look at the actual cost for individuals purchasing insurance on the marketplace paints a very different picture.

The Kaiser foundation created a calculator that uses insurance premiums from exchanges in each state, along with available subsidies to estimate the actual costs for those buying insurance. These costs depend on age, family size, income, and location.

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The following highlights CEPR’s latest research, publications, events, and much more.

Dean’s New Book

CEPR Co-Director Dean Baker’s new book, Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer, is now available! His book shows that upward redistribution was not the result of globalization and the natural workings of the market. Rather, it was the result of conscious policies that were designed to put downward pressure on the wages of ordinary workers while protecting and enhancing the incomes of those at the top. Dean explains how rules on trade, patents, copyrights, corporate governance, and macroeconomic policy were rigged to make income flow upward.

Dean wrote a piece for the Institute for New Economic Thinking (INET)’s blog that elaborates on the central theme of the book, and the first chapter was featured in Naked Capitalism. He also wrote for PBS NewsHour how intellectual property rules help the rich and hurt the poor. Dean was interviewed on the Thom Hartman show twice, first by Alex Lawson (Social Security Works) and then by Thom himself, and Dean’s views were cited in this op-ed in the Toronto Star on the Comprehensive Economic and Trade Agreement (CETA).

CEPR on Trade

Dean wrote this op-ed on the Trans-Pacific Partnership (TPP) and “free” trade. Dean also wrote numerous posts for his blog, "Beat the Press," on the media’s coverage of trade issues, including this one that clarifies a piece on (“the usually excellent”) NPR show This American Life on NAFTA. Dean also took The New York Times to task for pushing NAFTA and for promoting protectionism for doctors, dentists, pharma and the entertainment industry. He also analyzed an NYT piece on the trends in trade.

Many of CEPR’s analyses of the TPP and other trade deals were written in the context of the presidential race. Dean wrote an op-ed for The Hankyoreh called “Apologies for Trump” that discussed Donald Trump’s position on trade, and he was cited in this Think Progress piece that looked at Trump’s proposals. In this post for Beat the Press, Dean says that Trump is not all wrong on trade, while in this one he notes that Trump is closer to the mark than CNN.

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The following reports on labor market policy were recently released:


Economic Policy Institute

Black Workers’ Wages Have Been Harmed by both Widening Racial Wage Gaps and the Widening Productivity-Pay Gap
Valerie Wilson


The Century Foundation

Organizing’s Business Model Problem
Shayna Strom


National Employment Law Project

The Case for Phasing out Maine’s Subminimum Wage for Tipped Workers

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The economy grew at a 2.9 percent annual rate, the strongest growth rate since the third quarter of 2014. Most forecasts had put growth for the quarter at just over 2.0 percent. While this number is better than expected, a big factor was an increase in inventory accumulation, which added 0.61 percentage points to growth. Accumulation was actually negative in the second quarter, so the rate of accumulation is likely to be even higher in the fourth quarter.

Most categories of final demand were relatively weak. Consumption grew at a modest 2.1 percent annual rate. Residential investment fell at a 6.2 percent annual rate, its second consecutive decline. Non-residential fixed investment grew at a 1.2 percent rate, roughly the same pace as in the second quarter. This follows two quarters of decline. The collapse of energy prices and the increase in the trade deficit in manufacturing are the major factors behind the weakness in this component.

Government expenditures increased at a 0.5 percent annual rate, with a 2.5 percent increase in federal spending offsetting a 0.7 percent decline at the state and local level. This is the second consecutive quarter of decline at the state and local level.

Exports were a source of strength in the quarter, rising at a 10.0 percent annual rate, the strongest performance since the fourth quarter of 2013. As a result of this increase, net exports added 0.83 percentage points to growth for the quarter.

One striking figure in this report is the slower pace of inflation shown in the core personal consumption expenditure deflator (PCE). This rose at just a 1.7 percent annual rate in the third quarter. The rate of inflation shown in the core PCE has been trailing off throughout the year, rising at a 2.1 percent annual pace in the first quarter and a 1.8 percent rate in the second quarter. While there are enough erratic movements in the quarterly data to avoid treating this as evidence of deceleration, it is certainly hard to make a case for acceleration with these data.

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Japan is not exactly the country that comes to mind as a model of gender equality and high labor force participation for women. In 1995, the OECD estimated women’s employment rate in Japan at 56.5 percent, almost 10 percentage points lower than in the U.S., which had an employment rate of 66 percent for women at the time. Between 1995 and 1999, the employment rate for Japanese women grew by less than half a percentage point, while for women in the U.S. it grew by almost 3 percentage points.

However, since 2000 this trend completely reversed. Between 2000 and 2015, the employment rate for women in Japan increased by almost 14 percentage points, while in the U.S. it dropped by over 6 percentage points. Japan’s employment rate for women surpassed the U.S. in 2014. Currently, almost 65 percent of Japanese women are employed, while only about 63 percent of women in the US are employed.

In recent years, Japan has launched extensive campaigns to encourage labor force participation by women. The government took various steps such as increasing allowances given to new parents, subsidizing daycare, and ensuring both mothers and fathers benefit from paid parental leave.

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The following reports on labor market policy were recently released:


Economic Policy Institute


What is the gender pay gap and is it real?
Elise Gould, Jessica Schieder, Kathleen Geier


Center for American Progress


A Progressive Agenda for Inclusive and Diverse Entrepreneurship
Kate Bahn, Regina Willensky, Annie McGrew


Center for Law and Social Policy

How States Can Protect Workers with Irregular Schedules from Losing SNAP Benefits
Nune Phillips









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Government jobs are often thought to be highly desirable, with high levels of job security and generous benefits. In fact, research shows that the greater generosity of benefits is offset by lower pay. Adjusting for education and experience, compensation levels for government workers is comparable to compensation levels for private sector workers. In the last decade, there have been efforts at all levels of government to reduce the pay and benefits of government employees, which have been motivated in part by the argument that government workers are overpaid.

The evidence is that these efforts have accomplished their goal. The quit rates for government sector workers have risen substantially relative to the quit rates for their counterparts in the private sector.

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Some may see evidence of domestic violence as a visible mark on the body — a bruised face, perhaps a broken arm, or much worse for many victims. However, what we may not see are the economic consequences suffered by those who have been abused: how many days of work a victim has missed due to domestic abuse, or how many jobs she or he may have lost due to their abuser’s actions. Domestic violence isn’t limited only to acts of physical violence; abuse may result in financial and economic consequences that take away a survivors autonomy. Public policy can help mitigate these devastating effects of domestic violence. A key policy that can help is paid sick days that cover time off to deal with legal and health consequences of abuse. If implemented, such paid sick days laws would positively impact all workers, and also benefit domestic violence survivors.

Paid sick days laws are starting to sweep the country there are now 37 jurisdictions that have paid sick day laws in effect or where such laws will be implemented soon. Paid sick days provide economic security for victims of domestic violence so that taking time off to deal with domestic violence issues court appearances, doctors appointments, meetings with social workers, or healing wouldn’t mean survivors have to forfeit income or put their employment in jeopardy. All five states that have passed paid sick days laws Connecticut, California, Massachusetts, Oregon, and Vermont include provisions where sick time can be used for specific “safe time” purposes. This allows workers to take time off for purposes related to domestic violence. However, not all city jurisdictions with paid sick days include this provision, an oversight that needs to be corrected. Paid sick days would allow victims time to seek lifesaving services from local domestic violence programs.

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The following reports on labor market policy were recently released:


Economic Policy Institute

Black-white wage gaps expand with rising wage inequality
Valerie Wilson and William M. Rodgers III 


Urban Institute

Women’s Economic Empowerment: A Review of Evidence on Enablers and Barriers
H. Elizabeth Peters, Nan Marie Astone, Ammar A. Malik, Fenohasina Maret Rakotondrazaka, Caroline Heller


Institute for Women’s Policy Research

Job Growth Among Women Continues to Climb: 65 percent of Jobs Added in the 3rd Quarter of 2016 Went to Women


National Woman’s Law Center

Progress in the States for Equal Pay

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