Economics, Applied

Host Steven Davis and guest Ayşegül Şahin explore the extraordinary behavior of US labor markets since the onset of the COVID-19 pandemic. They explain how the global crisis spurred remote work, instigated the "great resignation," drove job vacancy rates to all-time highs, restrained overall wage growth, and altered the structure of wages. Steve and Ayşegül also discuss how the recession and recovery since March 2020 really was different than earlier cyclical episodes, making it harder for the Fed and other policymakers to assess the state of the labor market. They also remark on how the rise of remote work presents new challenges and options for employers and workers, including the opportunity to expand labor-force participation among women with young children and people with physical impairments. It’s an episode packed with insights for economists, journalists, policymakers, and anyone curious about the post-pandemic job market.

Steven Davis speaks with Emma Harrington about her recent study on the power of proximity in facilitating mentoring, employee feedback, and learning on the job. According to the study, software engineers give more written feedback to team members when working in the same building, as compared to working in nearby buildings or from home. Physical proximity has stronger effects on the feedback given and received by women, and it is especially important in facilitating feedback from senior to junior employees.

ABOUT THE SPEAKERS

Emma Harrington is an assistant professor of economics at the University of Virginia and affiliate of JPAL-North America. She received her PhD in Economics from Harvard in 2021. She held a postdoc position in the Industrial Relations Section at Princeton University in 2021-2022 and was assistant professor at the University of Iowa Tippie College of Business in 2022-23. Her research focuses on labor market issues, personnel economics, and law and economics.   

Steven J. Davis is the Thomas W. and Susan B. Ford senior fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research (SIEPR). He is an economic adviser to the U.S. Congressional Budget Office, elected fellow of the Society of Labor Economists, and consultant to the Federal Reserve Bank of Atlanta. He co-founded the Economic Policy Uncertainty project, the U.S. Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Before joining Hoover, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

• Emma's website 

Stijn Van Nieuwerburgh joins Steven Davis to explain how the remote work revolution affects urban property values, municipal tax revenues, and the outlook for cities. Stijn and Steve also consider how policymakers can respond to the challenges facing cities. In this regard, they discuss the conversion of vacant commercial buildings to new housing units, the need for regulatory reforms that lower construction costs, subsidies to real estate development, and the importance of safe, low-crime urban environments.

ABOUT THE SPEAKERS

Stijn Van Nieuwerburgh is the Earle W. Kazis and Benjamin Schore Professor of Real Estate and Professor of Finance at Columbia University’s Graduate School of Business. Stijn Van Nieuwerburgh obtained his B.A. in Economics at Belgium’s Ghent University in 1998 and later earned three advanced degrees at Stanford University (M.Sc. in Financial Mathematics, M.A. in Economics, and Ph.D. in Economics). He is a former editor at The Review of Financial Studies and past president of the American Real Estate and Urban Economics Association. In 2015, Stijn received the Bérnácer Prize for research on how housing-market shocks affect the broader economy and the prices of financial assets. 

Steven J. Davis is the Thomas W. and Susan B. Ford senior fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research (SIEPR). He is an economic adviser to the U.S. Congressional Budget Office, elected fellow of the Society of Labor Economists, and consultant to the Federal Reserve Bank of Atlanta. He co-founded the Economic Policy Uncertainty project, the U.S. Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Before joining Hoover, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

RELATED RESOURCES:

• Stijn’s website 

Suhani Jalota joins Steve to discuss her study of how digital jobs can draw women into paid work in countries like India. The jobs, performed on smartphones, produce data that help train and evaluate AI models. Several job design features help overcome practical barriers to work and sidestep social norms that inhibit work for pay by married women. Jalota tells Steve how this idea can work in practice, how outcomes for women in these jobs can be evaluated, the broader effects of drawing women into this type of work, and what is next on her research agenda.

ABOUT THE SPEAKERS

Suhani Jalota is a PhD candidate in Health Economics at the Stanford School of Medicine, and a Knight Hennessy Scholar.  She holds a Bachelor of Science in Economics and Global Health from Duke University (2016).  She is also the founder and director of a women's health organization, the Myna Mahila Foundation, based in Mumbai, India.  She has been working in urban slum areas and rural communities researching and designing strategies on projects including the health of adolescent girls, as well as public policies concerning water, sanitation, and social protection.  Her economics honors thesis topic looks at how slum redevelopment has negatively affected child health outcomes, even as rapid urbanization calls for policies that keep people healthy and safe.  She wants to further explore national health systems, their design, as well as challenges and outcomes, especially from a developing country context.

Steven J. Davis is the Thomas W. and Susan B. Ford senior fellow at the Hoover Institution and senior fellow at the Stanford Institute for Economic Policy Research (SIEPR). He is an economic adviser to the U.S. Congressional Budget Office, elected fellow of the Society of Labor Economists, and consultant to the Federal Reserve Bank of Atlanta. He co-founded the Economic Policy Uncertainty project, the U.S. Survey of Working Arrangements and Attitudes, the Global Survey of Working Arrangements, the Survey of Business Uncertainty, and the Stock Market Jumps project. He co-organizes the Asian Monetary Policy Forum, held annually in Singapore. Before joining Hoover, Davis was on the faculty at the University of Chicago Booth School of Business, serving as both distinguished service professor and deputy dean of the faculty.

Raj Choudhury joins Hoover Institution fellow Steven Davis to talk about work from home and other flexible working arrangements. They discuss Raj’s study of the transition to remote work by US patent examiners, including its effects on productivity and employee morale. Next, they consider which jobs and organizations are suited for remote work, which are not, and what it takes to successfully manage a remote

Hoover Institution fellow Steven Davis and Nick Bloom discuss the big shift to work from home, what it means for productivity, why perceptions in this regard often differ between managers and workers, and why – on balance – the big shift is a blessing.

For more information on the Economics, Applied podcast series, visit https://www.hoover.org/podcasts/economics-applied.

"Economics, Applied" is a new podcast series from the Hoover Institution hosted by senior Fellow Steven Davis.

Each episode of "Economics, Applied" features Steven Davis in conversation with leaders and researchers about economic developments and their ramifications. The goal is to bring evidence and economic reasoning to the table, drawing lessons for individuals, organizations, and society. The podcast also aims to showcase the value of individual initiative, markets, the rule of law, and sound policy in fostering prosperity and security.

To watch the 1st episode in this new series, visit https://youtu.be/9w1iaOLa7OE?si=wgPyTi44GwiJN8HZ.

ABOUT THE HOST

For more information, visit https://www.hoover.org/podcasts/economics-applied.