Economy

US companies ‘step up’ on paid leave

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The United States is the only country in the industrialized world that doesn’t mandate some form of paid family leave for employees. The tech industry, with other large companies not far behind, is beginning to adopt flexible, family-friendly paid leave policies to compete for skilled employees in a tightening labour market, argues Ken Fireman.

Google the phrase “lean in,” and almost […]

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    Book Review: The Financial Diaries: How American Families Cope in a World of Uncertainty by Jonathan Morduch and Rachel Schneider

Book Review: The Financial Diaries: How American Families Cope in a World of Uncertainty by Jonathan Morduch and Rachel Schneider

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In The Financial Diaries: How American Families Cope in a World of Uncertainty, Jonathan Morduch and Rachel Schneider focus on the volatility of domestic finances in the USA, presenting the findings of a new study based on the diaries of 235 households. In identifying the shared experience of financial uncertainty and the impact on people’s lives, this book provides […]

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    Will the review of the Dodd-Frank Act start a regulatory competition with the EU?

Will the review of the Dodd-Frank Act start a regulatory competition with the EU?

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A race to the bottom in regulation would weaken the global financial system and make crises more likely, writes Markus Demary.

The US-President has signed an executive order which directs the US Treasury department to revise financial regulation, especially the Dodd-Frank Act. But starting a regulatory competition with the EU will endanger global financial stability.

 The Dodd-Frank Wall Street Reform and […]

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    The interlock between company boards and investment banks in the early 1900s

The interlock between company boards and investment banks in the early 1900s

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Acting as underwriters and directors, bankers had conflicts of interest, but also facilitated the flow of information, write Carola Frydman and Eric Hilt.

In the early twentieth century, most American public companies had a partner or director from a top-ranked investment bank on their boards. Market participants generally believed that the banker-directors of that era monitored company management on behalf […]

Technology may not be responsible for jobless recoveries

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Since the early 1990s, the US has been plagued by weak employment growth when emerging from recessions – so called ‘jobless recoveries’. Georg Graetz and Guy Michaels look at multiple recoveries elsewhere in the world over a 40-year period to see if the same applies – and whether modern technology is responsible.

Recoveries from recessions in the United States used […]

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    Wage theft is widespread, but politics and policies can play a powerful role in reducing it.

Wage theft is widespread, but politics and policies can play a powerful role in reducing it.

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Wage theft is pervasive in America; in a new study of low-wage workers across the US, Daniel J. Galvin finds that 16 percent were paid less than their state’s minimum wage. He also finds that workers in those states which had greater employment law protections tended to have a lower chance of experiencing wage theft, and that those protections […]

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    Book Review: The Complacent Class: The Self-Defeating Quest for the American Dream by Tyler Cowen

Book Review: The Complacent Class: The Self-Defeating Quest for the American Dream by Tyler Cowen

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In The Complacent Class: The Self-Defeating Quest for the American Dream, Tyler Cowen extends his previous work on economic stagnation into an examination of a broader sense of stasis that has enveloped US society and culture. While events of 2016 have made the book’s anticipation of an impending and dramatic shift less prescient than may otherwise have been the case, Dalibor […]

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    Firms in less competitive industries are riskier investments

Firms in less competitive industries are riskier investments

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Also, higher exposure to systematic risk acts as a barrier to entry in product markets, writes Maria Cecilia Bustamante.

The financial economics literature regularly assumes that the markets in which firms sell their products are perfectly competitive, i.e., that firms take product prices as given while making corporate decisions. Alternatively, many models in the literature assume that firms operate in […]

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    Why e-readers succeeded as a disruptive innovation in the US, but not in Japan

Why e-readers succeeded as a disruptive innovation in the US, but not in Japan

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Amazon is part of the answer: in Japan no one offered a large selection of e-books to feed the devices, write Mark E. Parry and Tomoko Kawakami.

The concept of disruptive innovation has captured the attention of executives around the world. As explained by Clayton Christensen, a disruptive innovation is initially seen as unattractive by mainstream customers and by the […]

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    Donald Trump’s flawed plan to strong-arm other countries into “one-on-one” trade deals.

Donald Trump’s flawed plan to strong-arm other countries into “one-on-one” trade deals.

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In late January, President Trump stated that he would be pushing for new “one-on-one” trade deals with specific countries to replace multilateral agreements; exploiting US economic clout to negotiate deals which benefit the US the most. Markus Gastinger has created an index of trade and economic power in order to determine which countries Trump might try to target. He […]

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