Category: Labor Economics

Amazon Increases Rewards to Live-Video-Content-Creators

(p. B4) Amazon.com Inc.’s Twitch is allowing more broadcasters to make money on its platform, a move that could help the live-streaming business seize on challenges facing bigger rivals YouTube and Facebook Inc.
On Friday, Twitch said it will open up its revenue-sharing program next week for more broadcasters to get paid whenever they receive “bits”–custom, animated emoticons that act as an online currency for viewers to tip them. Twitch says bits are a way for those in the broadcasters’ channels to cheer them on.
Twitch will add more money-making opportunities to its new “affiliate program” in the future, the company said. Currently, only the top 1% of the 2.2 million people who stream on Twitch at least once a month–members of its so-called “partner program”–can generate revenue on the platform.
. . .
Twitch said its top earners in the partner program, who are its most popular broadcasters, make more than $100,000 a year. Under the new affiliate program, creators with fewer fans must meet certain criteria to demonstrate their commitment to streaming, such as a minimum number of hours spent on the air, to earn revenue. The amount of money the platform shares with its broadcasters varies depending on how it is earned.
Twitch sells bits to viewers in bundles ranging from $1.40 for 100 to $308 for 25,000. Broadcasters then earn one cent every time a viewer uses one.

For the full story, see:
Sarah E. Needleman. “Twitch Entices Video Creators With More Revenue Sharing.” The Wall Street Journal (Sat., April 22, 2017): B4.
(Note: ellipsis added.)
(Note: the online version of the story has the date April 21, 2017, and has the title “Twitch Entices Video Creators With More Revenue Sharing.”)

Retiring Later Improves Health in Old Age

(p. 3) Despite what may seem like obvious benefits, scholars can’t make definitive statements about the health effects of working longer. The research is inherently difficult: Just as retirement can influence health, so can health influence retirement.
“I would say, in my experience, the research is mixed,” said Dr. Maestas of Harvard Medical School. “The studies I have seen tend to show that there are health benefits to working longer.”
As the economists Axel Börsch-Supan and Morten Schuth of the Munich Center for the Economics of Aging of the Max Planck Institute for Social Law and Social Policy put it in an article for the National Bureau of Economic Research, “Even disliked colleagues and a bad boss, we argue, are better than social isolation because they provide cognitive challenges that keep the mind active and healthy.”
Other studies have examined the impact of work and employment on the richness of social networks and social connectedness. The economists Eleonora Patacchini of Cornell University and Gary Engelhardt of Syracuse University tapped into a database of some 1,300 people from ages 57 to 85 that asked about their social networks in 2005 and 2010. After controlling for marital status, age, health and income, they concluded that people who continued to work enjoyed an increase in the size of their networks of family and friends of 25 percent. The social networks of retired people, on the other hand, shrank during the five-year period. In the study, the gains were found to be largely limited to women and older people with postsecondary education.

For the full commentary, see:
CHRISTOPHER FARRELL. “Retiring; Their Jobs Keep Them Healthy.” The New York Times, SundayBusiness Section (Sun., MARCH 5, 2017): 3.
(Note: the online version of the commentary has the date MARCH 3, 2017, and has the title “Retiring; Working Longer May Benefit Your Health.”)

The article by Börsch-Supan and Schuth, is:
Börsch-Supan, Axel, and Morten Schuth. “Early Retirement, Mental Health, and Social Networks.” In Discoveries in the Economics of Aging, edited by David A. Wise. Chicago: University of Chicago Press, 2014, pp. 225-50.

On-Site Work “Is a Remnant of the Industrial Era”

(p. B5) Studies show that when employees have the choice to work remotely, “business is a whole lot better” for “people, the planet and profit,” said Kate Lister, president of Global Workplace Analytics, a consulting firm that focuses on emerging workplace trends.
Gallup’s State of the American Workplace report, released in February [2017], showed that more American employees were working remotely and for longer periods. The “sweet spot” was employees who spend three to four days a week off site; they reported feeling most engaged at work.
Mohammed Chahdi, global human resources services director for Dell, said a large percentage of its 140,000 employees already worked remotely and the goal was to have 50 percent do so by 2020. The strategy has helped the company “grow smart,” he said, by reducing its real estate and environmental footprints and retaining talented employees.
“We have data that show employees are more engaged when they enjoy flexibility,” said Mr. Chahdi, who works remotely from Toronto. “Why insist that they be in an office when it simply doesn’t matter?”
A new study, Future Workforce, released in February [2017] by Upwork, a marketplace for online work, surveyed more than 1,000 hiring managers in the United States. It found that only one in 10 believed location was important to a new hire’s success; nearly two-thirds said they had at least some workers who did a significant portion of their work from a remote location, and about half agreed that they had trouble finding the talent they needed locally.
“Remote work has gone mainstream,” said Stephane Kasriel, Upwork’s chief executive. On-site work between the hours of 9 and 5 “is a remnant of the industrial era.”

For the full story, see:
TANYA MOHN. “ITINERARIES; Digital Nomads Wander World Without Missing a Paycheck.” The New York Times (Tues., APRIL 4, 2017): B5.
(Note: bracketed years added.)
(Note: the online version of the story has the date APRIL 3, 2017, and has the title “ITINERARIES; The Digital Nomad Life: Combining Work and Travel.”)

Oregon Gadfly Fined for Practicing Engineering Without a License

(p. B2) Mats Jarlstrom acknowledges that he is unusually passionate about traffic signals — and that his zeal is not particularly appreciated by Oregon officials.
His crusade to make traffic lights remain yellow longer — which began after his wife received a red-light camera ticket — has drawn some interest among transportation specialists and the media. But among the power brokers in his hometown, Beaverton, it has elicited ridicule and exasperation.
“They literally laughed at me at City Hall,” Mr. Jarlstrom recalled of a visit there in 2013, when he tried to share his ideas with city counselors and the police chief.
Worse still was getting hit recently with a $500 fine for engaging in the “practice of engineering” without a license while pressing his cause. So last week, Mr. Jarlstrom filed a civil rights lawsuit in federal court against the Oregon State Board of Examiners for Engineering and Land Surveying, charging the state’s licensing panel with violating his First Amendment rights.
“I was working with simple mathematics and applying it to the motion of a vehicle and explaining my research,” said Mr. Jarlstrom, 56. “By doing so, they declared I was illegal.”
The lawsuit is the latest and perhaps most novel shot in the continuing campaign against the proliferation of state licensing laws that can require costly training and fees before people can work. Mr. Jarlstrom is being represented by the Institute for Justice, a libertarian organization partly funded by the billionaire brothers and activists Charles G. and David H. Koch.

For the full story, see:
PATRICIA COHEN. “Crusader Fined for Doing Math Without License.” The New York Times (Mon., May 1, 2017): B2.
(Note: the online version of the story has the date APRIL 30, 2017, and has the title “Yellow-Light Crusader Fined for Doing Math Without a License.”)

FDR’s Attorney General Warned Black Newspapers That He Would “Shut Them All Up”

(p. 12) . . . as the former Chicago Defender editor and reporter Ethan Michaeli shows in his extraordinary history, “The Defender,” the Negro press barons attacked military segregation with a zeal that set Roosevelt’s teeth on edge. The Negro press warned black men against Navy recruiters who would promise them training as radiomen, technicians or mechanics — then put them to work serving food to white men. It made its readers understand that black men and women in uniform were treated worse in Southern towns than German prisoners of war and sometimes went hungry on troop trains because segregationists declined to feed them. It focused unflinchingly on the fistfights and gun battles that erupted between blacks and whites on military bases. And it reiterated the truth that no doubt cut Roosevelt the most deeply: His government’s insistence on racial separation was of a piece with the “master race” theory put in play by Hitler in Europe.
This was not the first time The Defender and its sister papers had attacked institutional racism. That part of the story begins with Robert S. Abbott, the transplanted Southerner who created The Defender in 1905 and fashioned it into a potent weapon.
. . .
The black press was considerably more powerful and self-assured by 1940, when Abbott died and his nephew John H. Sengstacke succeeded him.
. . .
Things stood thus in 1942, when Sengstacke traveled to Washington to meet with Attorney General Francis Biddle. Sengstacke found Biddle in a conference room, sitting at a table across which was spread copies of black newspapers that included The Defender, The Courier and The Afro-American. Biddle said that the black papers were flirting with sedition and threatened to “shut them all up.”

For the full review, see:
BRENT STAPLES. “‘A ‘Most Dangerous’ Newspaper.” The New York Times Book Review (Sun., JAN. 10, 2016): 12.
(Note: ellipses added.)
(Note: the online version of the review has the date JAN. 4, 2016, and has the title “”The Defender,’ by Ethan Michaeli.”)

The book under review, is:
Michaeli, Ethan. The Defender: How the Legendary Black Newspaper Changed America. New York: Houghton Mifflin Harcourt, 2016.

Government Regulations Suppress Poor Street Entrepreneurs

(p. 7) HANOI, Vietnam — As strips of tofu sizzle beside her in a vat of oil, Nguyen Thu Hong listens for police sirens.
Police raids on sidewalk vendors have escalated sharply in downtown Hanoi since March [2017], she said, and officers fine her about $9, or two days’ earnings, for the crime of selling bun dau mam tom — vermicelli rice noodles with tofu and fermented shrimp paste — from a plastic table beside an empty storefront.
“Most Vietnamese live by what they do on the sidewalk, so you can’t just take that away,” she said. “More regulations would be fine, but what the cops are doing now feels too extreme.”
Southeast Asia is famous for its street food, delighting tourists and locals alike with tasty, inexpensive dishes like spicy som tam (green papaya salad) in Bangkok or sizzling banh xeo crepes in Ho Chi Minh City. But major cities in three countries are strengthening campaigns to clear the sidewalks, driving thousands of food vendors into the shadows and threatening a culinary tradition.
. . .
. . . some experts say street food is not inherently less sanitary than restaurant food. “If you’re eating fried foods or things that are really steaming hot, then there’s probably not much difference at all,” said Martyn Kirk, an epidemiologist at the Australian National University.
. . .
Ms. Hong, the Hanoi vendor, said her earnings had cratered by about 60 percent since the start of the crackdown, when she moved to her present location from a busy street corner as a hedge against police raids.

For the full story, see:
MIKE IVES. “Food So Popular, Asian Cities Want It Off the Streets.” The New York Times, First Section (Sun., APRIL 30, 2017): 7.
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the story has the date APRIL 29, 2017, and has the title “Efforts to Ease Congestion Threaten Street Food Culture in Southeast Asia.”)

“The System Is Totally Crazy”

(p. D1) Mr. Ahmed, 46, is in the business of chicken and rice. He immigrated from Bangladesh 23 years ago, and is now one of two partners in a halal food cart that sets up on Greenwich Street close to the World Trade Center, all year long, rain or shine. He is also one of more than 10,000 people, most of them immigrants, who make a living selling food on the city’s sidewalks: pork tamales, hot dogs, rolled rice noodles, jerk chicken.
These vendors are a fixture of New York’s streets and New Yorkers’ routines, vital to the culture of the city. But day to day, they struggle to do business against a host of challenges: byzantine city codes and regulations on street vending, exorbitant fines for small violations (like setting up an inch too close to the curb) and the occasional rage of brick-and-mortar businesses or residents.
. . .
(p. D6) Mr. Ahmed ties on his apron and pushes a few boxes underneath the cart so he can squeeze inside and get to work. Any boxes peeking out beyond the cart’s footprint could result in a fine (penalties can run up to $1,000), as could parking his cart closer than six inches to the curb, or 20 feet to the building entrance. Mr. Ahmed knows all the rules by heart.
. . .
He applied for a food vendor’s license, took a required health and safety class, bought a used cart and took it for an inspection by city officials. (The health department inspects carts at least once a year, and more frequently if a violation is reported.)
Mr. Ahmed still needed a food-vending permit, though, and because of a cap on permits imposed in the 1980s, only 4,000 or so circulate. He acquired his from a permit owner who has charged him and his partner $25,000 for two-year leases (for a permit that cost the owner just $200), which they are still paying off.
A day ago, Mr. Ahmed received a text message: 100 vendors were protesting the cap. Organized by the Street Vendor Project, a nonprofit group that is part of the Urban Justice Center and offers legal representation to city vendors, they hoped to pressure the City Council to pass legislation introduced last fall that would double the number of food-vending permits, gradually, over the next seven years. Mr. Ahmed, who believes the costs for those starting out should be more manageable, wanted to join them, but like many vendors, he couldn’t get away from work.
“The system is totally crazy,” Mr. Ahmed says. “Whoever has a license, give them a permit. It’s good for all of us.”

For the full story, see:
TEJAL RAO. “A Day in the Lunch Box.” The New York Times (Weds., APRIL 19, 2017): D1 & D6.
(Note: ellipses added.)
(Note: the online version of the story has the date APRIL 18, 2017, and has the title “A Day in the Life of a Food Vendor.”)

Banks Often Less Transparent and Less Flexible than Bank Alternatives

I saw a C-Span interview on their weekend Book TV today (3/16/17), with Professor Lisa Servon. She pointed out that many of the highly regulated, and much-criticized, alternative banking services, offer a more transparent, more flexible, and more friendly service environment than the incumbent banking industry. She even argues that for those with low-incomes, and low-education, the alternative services are often less expensive. This happens because those with low-incomes and low education are often those who by mistake or by difficult circumstance, incur high fees at banks.
She points out that many who are bankless, previously made use of bank services, but decided to go with the alternatives. She suggested that in a free market environment, some of the alternatives might creatively destroy the incumbent banks.
Servon is clearly no libertarian, but much of what she says is thought-provoking.

Servon’s book is:
Servon, Lisa. The Unbanking of America: How the New Middle Class Survives. New York: Houghton Mifflin Harcourt Publishing Co., 2017.

Going Postal

(p. 19) Over all, Leonard emphasizes a darker side of postal history, from the corruption scandals that periodically erupted after Andrew Jackson politicized the service, creating a gargantuan patronage machine, to oppressive government censorship campaigns. He devotes much of a chapter to Anthony Comstock, the longtime postal inspector and self-styled “weeder in God’s garden,” who banned and prosecuted the mailing of birth control pamphlets, “marriage aids” and “indecent” literary works like Walt Whitman’s poems, lest they pollute public morals. Still another chapter charts the spree of mass killings by overworked, underpaid and aggrieved postal workers in the 1980s and early 1990s.

For the full review, see:
LISA McGIRR. “We Had Mail.” The New York Times Book Review (Sun., JULY 10, 2016): 19.
(Note: the online version of the review has the date JULY 8, 2016, and has the title “Two Books Recount How Our Postal System Created a Communications Revolution.”)

The book under review, is:
Leonard, Devin. Neither Snow nor Rain: A History of the United States Postal Service. New York: Grove Press, 2016.

Lower Quality Restaurants Most Hurt by Minimum Wage Hike

(p. A17) “There’s only so much you can charge for tamales,” the owner of a small eatery said in 2015 to explain one reason he was closing.
For some empirical backup, consider an April [2017] study from Michael Luca at Harvard Business School and Dara Lee Luca at Mathematica Policy Research. They used Bay Area data from the review website Yelp to estimate that a $1 minimum-wage hike leads to a 14% increase in “the likelihood of exit for a 3.5-star restaurant.”
Put differently, San Francisco’s minimum wage experiment may be dangerous for your favorite white-tablecloth restaurant–the kind of place where the food is exquisite and can command a premium–but it’s downright deadly for your local white-apron diner.

For the full commentary, see:

Michael Saltsman. “The Minimum Wage Eats Restaurants; A San Francisco ex-owner says: ‘There’s only so much you can charge for tamales.’.” The Wall Street Journal (Weds., May 9, 2017): A17.
(Note: bracketed year added.)
(Note: the online version of the commentary has the date May 9, 2017,)

The Luca and Luca paper, mentioned above, is:
Luca, Dara Lee and Luca, Michael. “Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit.” (April 2017). Harvard Business School NOM Unit Working Paper No. 17-088.