Labor Economics – Page 33 – artdiamondblog.com

Bicycles Emancipated Women

“A portrait from the 1890s at the Smithsonian Institution’s National Museum of American History. Susan B. Anthony said cycling did more to emancipate women than anything else in the world.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. D1) . . . , Twain promoted the new sport of cycling with characteristic rhubarb tartness. “Get a bicycle,” he urged readers. “You will not regret it, if you live.”
. . .
The full-bore bicycle fever was brief, and by the early 20th century it had given way to fascination with the automobile. Yet, as a new exhibit at the Smithsonian Institution’s National Museum of American History makes clear, the impact of the bicycle on the nation’s industrial, cultural, emotional and even moral landscape has been deep and long lasting.
In addition to air-filled rubber tires, we can thank the bicycle for essential technologies like ball bearings, originally devised to reduce friction in the bicycle’s axle and steering column; for wire spokes and wire spinning generally; for differential gears that allow connected wheels to spin at different speeds.
And where would our airplanes, tent poles and lawn furniture be without the metal tubing developed to serve as the bicycle frame? “The hollow steel tube is a great form,” said Jim Papadopoulos, an assistant teaching professor of mechanical and industrial engineering at Northeastern University in Boston. “It’s tremendously structurally efficient, light and strong, and it came into being for the bicycle.”
. . .
(p. D4) Bicycles also gave birth to our national highway system, as cyclists outside major cities grew weary of rutted mud paths and began lobbying for the construction of paved roads. The car connection goes further still: Many of the bicycle repair shops that sprang up to service the wheeling masses were later converted to automobile filling stations, and a number of pioneers in the auto industry, including Henry Ford and Charles Duryea, started out as bicycle mechanics. So, too, did the Wright brothers.
“The pre-story is so important,” said Eric S. Hintz, a historian with the Smithsonian’s Lemelson Center for the Study of Invention and Innovation. “You don’t get automobiles unless you first have bikes.”
. . .
By the mid-1890s, some 300 American companies were churning out well over a million bicycles a year, making the safety bike one of the first mass-produced items in history. Among the most exuberant customers were women, who discovered in the bicycle a sense of freedom they had rarely experienced before.
. . .
Bicycles allowed young men and women to tool around the countryside unsupervised, and relationships between the sexes grew more casual and spontaneous. With a bicycle at her disposal, a young woman could also venture forth in search of work.
Small wonder that Susan B. Anthony said of cycling, “I think it has done more to emancipate women than any one thing in the world.”

For the full story, see:
NATALIE ANGIER. “Basics; A Ride to Freedom.” The New York Times (Tues., JULY 14, 2015): D1 & D4.
(Note: ellipses added.)
(Note: the online version of the story has the date JULY 13, 2015, and has the title “Basics; The Bicycle and the Ride to Modern America.”)

Recent Job Losses from City Minimum Wage Hikes

(p. A13) The city councils in Seattle, San Francisco and Los Angeles have already voted to increase their minimum wage to $15 an hour over several years. For large employers in Seattle, the first increase to $11 from $9.47 took effect in April. In San Francisco a hike to $12.25 from $10.74 began in May. Los Angeles rolled out a minimum wage for hotel workers of $15.37 in July.
It’s still early to know how the hikes are affecting the job market, but the preliminary data aren’t good. Mark Perry of the American Enterprise Institute, Adam Ozimek of Moody’s Analytics and Stephen Bronars of Edgewood Economics reported last month that the restaurant and hotel industries have lost jobs in all three cities. Mr. Bronars crunched the numbers and discovered that the “first wave of minimum wage increases appears to have led to the loss of over 1,100 food service jobs in the Seattle metro division and over 2,500 restaurant jobs in the San Francisco metro division.” That is a conservative estimate, he notes, as the data include areas outside city limits, where the minimum wage didn’t increase.
This comes as no surprise. In 2014 the Congressional Budget Office found that increasing the minimum wage to $10.10 an hour would result in employment falling by 500,000 jobs nationally. By the way, less than 20% of the earning benefits would flow to people living below the poverty line, as University of California-Irvine economist David Neumark has pointed out.

For the full commentary, see:
ANDY PUZDER. “A Post-Labor Day, Minimum-Wage Hangover; The evidence is already coming in: Mandatory increases in Los Angeles, San Francisco and Seattle have cost thousands of jobs.” The Wall Street Journal (Tues., Sept. 8, 2015): A13.
(Note: the online version of the commentary has the date Sept. 7, 2015.)

Evidence Minimum Wage Causes Job Loss

(p. A1) Some economists have reported that there is no longer any evidence that raising wages will cost jobs.
Unfortunately, that last claim is inaccurate. There are in fact many studies on each side of the issue. David Neumark of the University of California, Irvine and William Wascher of the Federal Reserve have done their own studies and point to dozens of others showing significant job losses.
Recently, Michael Wither and Jeffrey Clemens of the University of California, San Diego looked at data from the 2007 federal minimum-wage hike and found that it reduced the national employment-to-population ratio by 0.7 percentage points (which is actually a lot), and led to a six percentage point decrease in the likelihood that a low-wage worker would have a job.
Because low-wage workers get less work experience under a higher minimum-wage regime, they are less likely to transition to higher-wage jobs down the road. Wither and Clemens found that two years later, workers’ chances of making $1,500 a month was reduced by five percentage points.
Many economists have pointed out that as a poverty-fighting measure the minimum wage is horribly targeted. A 2010 study by Joseph Sabia and Richard Burkhauser found that only 11.3 percent of workers who would benefit from raising the wage to $9.50 an hour would come from poor households. An earlier study by Sabia found that single mothers’ employment dropped 6 percent for every 10 percent increase in the minimum wage.
A study by Thomas MaCurdy of Stanford built on the fact that there are as many individuals in high-income families making the minimum wage (teenagers) as in low-income families. MaCurdy found that the costs of raising the wage are passed on to consumers in the form of higher prices. Minimum-wage workers often work at places that disproportionately serve people down the income scale. So raising the minimum wage is like a regressive consumption tax paid for by the poor to subsidize the wages of workers who are often middle class.

For the full commentary, see:
David Brooks. “Minimum Wage Muddle.” The New York Times (Fri., JULY 24, 2015): A25.
(Note: ellipsis added.)
(Note: the online version of the article has the title “The Minimum-Wage Muddle.”)

Smart and Energetic Young Adults in France Find Opportunity in England, Australia or the U.S.

(p. A6) The income gap between generations is even more severe in France than in the United States, said Louis Chauvel, a French sociologist who has also worked in America on income inequality and other issues. On top of that, Mr. Chauvel added, the United States economy has been rebounding, while unemployment in France has been rising since 2008 and has hovered around 10 percent for the last two years.
“In the U.S., the young 25-year-olds have lots of opportunities,” he said. “It’s generally much better to be relatively young in the United States than to be aging.
“In France, we face a completely different trend: We have more and more educated young French citizens, and they face economic scarcity, even though they have more education than their parents.”
Young adults in France see their taxes going to finance social benefits for retirees that they believe they will never receive, Mr. Chauvel added. The most energetic and smartest among them do find jobs, he said, but often they can do it only by leaving France for Britain, Australia or the United States.

For the full story, see:
ALISSA J. RUBIN and AURELIEN BREEDEN. “‘Song for French Charity Strikes Discordant Note.” The New York Times (Weds., MARCH 4, 2015): A6.
(Note: the online version of the story has the date MARCH 3, 2015, and has the title “‘Toute La Vie,’ Song for French Charity, Strikes Discordant Note.”)

More Danger from Existing Artificial Stupidity than from Fictional Artificial Intelligence

(p. B6) In the kind of artificial intelligence, or A.I., that most people seem to worry about, computers decide people are a bad idea, so they kill them. That is undeniably bad for the human race, but it is a potentially smart move by the computers.
But the real worry, specialists in the field say, is a computer program rapidly overdoing a single task, with no context. A machine that makes paper clips proceeds unfettered, one example goes, and becomes so proficient that overnight we are drowning in paper clips.
In other words, something really dumb happens, at a global scale. As for those “Terminator” robots you tend to see on scary news stories about an A.I. apocalypse, forget it.
“What you should fear is a computer that is competent in one very narrow area, to a bad degree,” said Max Tegmark, a professor of physics at the Massachusetts Institute of Technology and the president of the Future of Life Institute, a group dedicated to limiting the risks from A.I.
In late June, when a worker in Germany was killed by an assembly line robot, Mr. Tegmark said, “it was an example of a machine being stupid, not doing something mean but treating a person like a piece of metal.”
. . .
“These doomsday scenarios confuse the science with remote philosophical problems about the mind and consciousness,” Oren Etzioni, chief executive of the Allen Institute for Artificial Intelligence, a nonprofit that explores artificial intelligence, said. “If more people learned how to write software, they’d see how literal-minded these overgrown pencils we call computers actually are.”
What accounts for the confusion? One big reason is the way computer scientists work. “The term ‘A.I.’ came about in the 1950s, when people thought machines that think were around the corner,” Mr. Etzioni said. “Now we’re stuck with it.”
It is still a hallmark of the business. Google’s advanced A.I. work is at a company it acquired called DeepMind. A pioneering company in the field was called Thinking Machines. Researchers are pursuing something called Deep Learning, another suggestion that we are birthing intelligence.
. . .
DeepMind made a program that mastered simple video games, but it never took the learning from one game into another. The 22 rungs of a neural net it climbs to figure out what is in a picture do not operate much like human image recognition and are still easily defeated.

For the full story, see:
QUENTIN HARDY. “The Real Threat Computers Pose: Artificial Stupidity, Not Intelligence.” The New York Times (Mon., JULY 13, 2015): B6.
(Note: ellipses added.)
(Note: the online version of the story has the date JULY 11, 2015, and has the title “The Real Threat Posed by Powerful Computers.”)

How Jack Dorsey Achieves Work-Life Balance: “I Don’t Have a Family”

(p. B1) Maybe Jack Dorsey needs to clone himself.
On July 1, the technology entrepreneur took on the challenge of turning around Twitter, the social media site that he co-founded and that he was asked to run as interim chief executive. At the same time, Mr. Dorsey has filed confidential paperwork to sell stock to the public in the other company where he is chief executive, Square, a mobile payments provider, a person briefed on the action said on Friday [July 24, 2015].
The collision of events adds fodder to one of Silicon Valley’s hottest topics: how Mr. Dorsey will juggle the companies, and whether he will forgo responsibilities at one to concentrate on the other.
. . .
(p. B2) On Tuesday [July 28, 2015], Mr. Dorsey will face Twitter investors when he reports the San Francisco-based company’s quarterly earnings. The executive has been preparing for the event, where his performance will be scrutinized.
Mr. Dorsey has also spent time at Square, which has offices about a block away from Twitter’s on Market Street in San Francisco. Last week, he moderated a panel discussion on women in technology at Square’s twice-monthly staff meeting, featuring three women — Sarah Friar, Alyssa Henry and Francoise Brougher — who head finance, engineering and business operations, respectively, at the mobile payments company.
During a part of the session that focused on parenting, according to a person who attended the meeting, Mr. Dorsey was asked how he managed to achieve work-life balance. He told the audience, “Uh, I don’t have a family.”

For the full story, see:
MIKE ISAAC and VINDU GOEL. “Square’s Filing Turns Talk to Dorsey’s Juggling Skills.” The New York Times (Sat., JULY 25, 2015): B1-B2.
(Note: ellipsis, and bracketed dates, added.)
(Note: the online version of the obituary has the date JULY 24, 2015.)

Refugee Walks Nearly 30 Miles Across English Channel, Dodging Hurtling Trains in Dark, Before His Arrest

(p. A1) LONDON — For one African migrant, there was nothing left to lose.
The migrant, Abdul Rahman Haroun, 40, risked his life this week by climbing four fences, evading international search teams and as many as 400 security cameras, and walking about 30 miles in the darkness of the Channel Tunnel in an effort to reach Britain from Calais, France. He dodged trains traveling to London from Paris as they hurtled by at up to 100 miles per hour.
He had made it nearly to the other side, Folkestone, England, before he was caught and arrested on Tuesday [August 4, 2015].
Three days later news of Mr. Haroun’s perilous journey was still reverberating in Britain, a country polarized by a spiraling migration crisis. Though much about him remains unknown — the police said he is Sudanese and has no fixed address — his story of determination had reduced the sprawling migration crisis to a human scale, . . .

For the full story, see:
DAN BILEFSKY. “In a First, a Sudanese Migrant Nearly Crosses the English Channel on Foot.” The New York Times (Sat., AUG. 8, 2015): A1 & A8.
(Note: ellipsis, and bracketed date, added.)
(Note: the online version of the story has the date AUG. 7, 2015.)

“I’ll Be Lucky When I’m in England”

(p. A4) CALAIS, France — The sun had barely set when a 23-year-old Eritrean woman who gave her name as Akbrat fell into step with dozens of other men and women and started scaling the fence surrounding the entrance to the French side of the Channel Tunnel.
The barbed wire cut her hands, but she did not feel the pain. The police seemed to be everywhere. She thought of her 5-year-old son back in Africa and ran, zigzag through the falling shadows, once almost colliding with an officer in a helmet.
Then she was alone. She slipped under the freight train and waited, clambering out just as it began moving.
But before she could hurl herself onto the train bed transporting trucks filled with Britain-bound produce, a French officer caught up with her, she recalled in an interview on Thursday. Blinded by tear gas, she stumbled and bruised her right ankle. After being ejected from the complex around the tunnel, it took her five hours to limp the nine miles back to the refugee camp of makeshift shelters that its 3,000 inhabitants call the “jungle.”
“You’re lucky you weren’t killed,” someone told her.
“I’m not lucky,” she responded. “I’ll be lucky when I’m in England.”
. . .
For many of the migrants who have been coming to the Continent from Africa, the Middle East and beyond, Calais, a mere 21 miles from the white cliffs of Dover, is their last stop. If they make it across to Britain, many believe they will have reached safety and a better life.

For the full story, see:
KATRIN BENNHOLD and ALISSA J. RUBIN. “Migrants Taste Freedom at Tunnel’s Door.” The New York Times (Fri., JULY 31, 2015): A4 & A10.
(Note: ellipsis added.)
(Note: the online version of the story has the date JULY 30, 2015, and has the title “Migrants in Calais Desperately Rush the Channel Tunnel to England, Night After Night.”)

No Increase in Public’s Concern with Income Inequality Since 1978

(p. 4A) DENVER (AP) — Income inequality is all the rage in public debate nowadays. Political figures from Sen. Elizabeth Warren on the left to Republican presidential prospect Jeb Bush on the right are denouncing the widening gap between the wealthy and everyone else.
But ordinary Americans don’t seem as fascinated by the issue as their would-be leaders. The public’s expressed interest in income inequality has remained stagnant over the past 36 years, according to the General Social Survey, which measures trends in public opinion.
In 2014 polling, Republicans’ support for the government doing something to narrow the rich-poor gap reached an all-time low. Even Democrats were slightly less interested in government action on the issue than they were two years ago.
The survey is conducted by the independent research organization NORC at the University of Chicago. Because of its long-running and comprehensive questions, it is a highly regarded source on social trends.
In the latest survey, made public last week, less than half of Americans — 46 percent — said the government ought to reduce income differences between the rich and the poor. That level has held fairly steady since 1978. Thirty-seven percent said the government shouldn’t concern itself with income differences, and the rest didn’t feel strongly either way.

For the full story, see:
AP. “Income Inequality? Pols Want to Talk about It; Public Yawns.” Omaha World-Herald (Monday, March 23, 2015): 4A.

For more details on the National Opinion Research Center (NORC) General Social Survey (GSS) results through 2014, see:
Inequality: Trends in Americans’ Attitudes URL: http://www.apnorc.org/projects/Pages/HTML%20Reports/inequality-trends-in-americans-attitudes0317-6562.aspx#study

More Tech Stars Skip College, at Least for a While

(p. B1) The college dropout-turned-entrepreneur is a staple of Silicon Valley mythology. Steve Jobs, Bill Gates and Mark Zuckerberg all left college.
In their day, those founders were very unusual. But a lot has changed since 2005, when Mr. Zuckerberg left Harvard. The new crop of dropouts has grown up with the Internet and smartphones. The tools to create new technology are more accessible. The cost to start a company has plunged, while the options for raising money have multiplied.
Moreover, the path isn’t as lonely.
. . .
Not long ago, dropping out of school to start a company was considered risky. For this generation, it is a badge of honor, evidence of ambition and focus. Very few dropouts become tycoons, but “failure” today often means going back to school or taking a six-figure job at a big tech company.
. . .
(p. B5) There are no hard numbers on the dropout trend, but applicants for the Thiel Fellowship tripled in the most recent year; the fellowship won’t disclose numbers.
. . .
It has tapped 82 fellows in the past five years.
“I don’t think college is always bad, but our society seems to think college is always good, for everyone, at any cost–and that is what we have to question,” says Mr. Thiel, a co-founder of PayPal and an early investor in Facebook.
Of the 43 fellows in the initial classes of 2011 and 2012, 26 didn’t return to school and continued to work on startups or independent projects. Five went to work for large tech firms, including a few through acquisitions. The remaining 12 went back to school.
Mr. Thiel says companies started by the fellows have raised $73 million, a record that he says has attracted additional applicants. He says fellows “learned far more than they would have in college.”

For the full story, see:
DAISUKE WAKABAYASHI. “College Dropouts Thrive in Tech.” The Wall Street Journal (Thurs., June 4, 2015): B1 & B10.
(Note: ellipses added. The phrase “the fellowship won’t disclose numbers” was in the online, but not the print, version of the article.)
(Note: the online version of the article has the date June 3, 2015, and has the title “College Dropouts Thrive in Tech.”)