In 1960, only six percent of all the doctors and lawyers in the country were either women (of all races and ethnicities) or men of color. All the rest -- the overwhelming majority -- were white men. Fast forward half a century. By the year 2010, women and nonwhite men were 38 percent of doctors and lawyers. A similar integration occurred in other high-paying professions that required college and post-graduate degrees. 
According to a paper by economist Chang-Tai Hsieh and his co-authors, this deepening integration accounted for an astonishing 40 percent of the per-capita economic growth in the country during this period. Like much of Chang-Tai’s other work, this paper is about what happens when people are finally able to apply their talents in ways that best take advantage of those talents -- and what a tragedy it is, for all of us, when they can’t.  
And that’s why this story is not entirely a happy one. Mainly because there is so much progress that is still left to be made. But also because the progress that was being made appears to be slowing down. And for some people, it might even be reversing. 
Links from the episode:“The Allocation of Talent and U.S. Economic Growth” (https://tinyurl.com/988c6a8)“Housing Constraints and Spatial Misallocation” (https://tinyurl.com/wcyh3mtd)Chang-Tai Hsieh’s research page (https://tinyurl.com/n86tufvs)Cardiff and Aimee are on Twitter at @CardiffGarcia and @AimeePKeaneSend us an email! You can write to us at hello@bazaaraudio.com
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When talent is no longer wasted

Through long-form interviews with economists, policymakers and other guests, The New Bazaar explores how the economy is constantly altering the way we live -- and how our choices in life are reflected back into the economy.&nbsp;Hosted by Cardiff Garcia and produced by Aimee Keane, The New Bazaar is a production of Bazaar Audio.&nbsp; Hosted on Acast. See acast.com/privacy for more information.

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"The introverts have taken over the US economy."
That's the provocative title of a recent Bloomberg column from economist Allison Schrager. As she looked into the data on how Americans have been spending their time since the pandemic, she noticed that they are spending less time socializing with their friends on weekends and more time in front of screens. Even when they do go out, it's increasingly for an early dinner. That's all in addition to the bigger share of Americans who now work remotely, a trend that accelerated during the pandemic and is unlikely to ever fully reverse.
Who are the winners and losers from these trends? And what's going on?
Obvious explanations include pandemic experimentation, smartphones, better entertainment and telecommunications technologies. But Allison also likes to see these trends through the prism of risk. She tells Cardiff that the "risk-free rate" that Americans can earn from indoor, introverted activity has climbed. With so much choice over the movies, music, and books you can consume in your home, not to mention access to social media and swipe-able dating apps, you are guaranteed to have at least a pretty good time by staying in. Going out means making an "investment" with possibly more upside (meet the love of your life, see a memorable live performance, attend an epic party) but also a vastly more uncertain payoff.
Allison and Cardiff discuss these ideas and whether the economy's new introvert-friendliness is likely to stay. They also talk about other trends that could soon favor extroverts, the risks of AI and automation in the labor market, and the skills and traits that will matter for the jobs of the future.
Related links:The Introverts Have Taken Over the US Economy (Bloomberg column)Known Unknowns (Allison's newsletter)An Economist Walks Into a Brothel (Allison's book about risk) Hosted on Acast. See acast.com/privacy for more information.

Is the Introvert Economy here to stay?

When people talk about the crisis at the border between the US and Mexico, what specifically are they referring to?
The Department of Homeland Security keeps track of a statistic called “border encounters” at the US border with Mexico. This includes primarily the large number of people who try to cross the border without documentation, or illegally, and aren't crossing at a formal port of entry. It also includes people who do try to cross the border at a port of entry but who are then found not eligible to be admitted into the US. 
In the past three years, under the Biden administration, the number of these border encounters each year has been more than quadruple the average of what it was throughout most of the previous decade, under the Trump and Obama administrations. 
The system for processing all these migrants has been entirely overwhelmed. And if you’re a politician or a pundit or someone else pushing an agenda, the temptation is to make it political. To argue that this is either all Joe Biden’s fault for being "too soft" on immigration, or the fault of Donald Trump for not fixing the problem sooner, or Congress for refusing to collaborate on a bill that would address the issue.
Today’s guest does something different altogether. Andrew Selee is the head of the Migration Policy Institute, or MPI, which is the think tank Cardiff turns to when he wants factual, nonpartisan, non-stupid commentary on immigration—but especially when he just wants to inform himself on the topic outside the nonsense of how debates on immigration tend to play out in public.
So Cardiff speaks with Andrew about the real, fundamental reasons behind the crisis at the border, and what can be done about it. 
They also talk about legal immigration, which despite many problems has actually been a kind of quiet success of recent years. 
Other topics they discuss include the two eras of border management, the multi-layered effects of the pandemic on immigration, and a new idea for how to reform immigration to become more responsive to the needs of the US labor market. 
Related links: Biden at the Three-Year MarkShifting Realities at the U.S.-Mexico BorderMigration at the U.S.-Mexico Border: A Challenge Decades in the MakingA New Way Forward for Employment-Based Immigration: The Bridge Visa Hosted on Acast. See acast.com/privacy for more information.

Immigration and the border: the real story

Who is the Magic Johnson of economics? Who was the Adam Smith of basketball?
On this fun and oddball episode of The New Bazaar, Cardiff speaks with Tyler Cowen, economist and author of GOAT: Who is the Greatest Economist of all Time and Why Does it Matter?   Inspired by the sportswriter Bill Simmons, Tyler wrote his book from the standpoint of a fan—having fun, taking sides, admitting biases, unapologetically trying to entertain the reader instead of presenting sober (boring) analysis. 
Cardiff and Tyler—both huge basketball fans—first discuss Tyler's ranking of the great economists and his lament for what economics used to be. Tyler also gives his reasons for releasing the book as a ChatGPT trained on its text, the first such book of its kind.
Then begins the fun. They take turns finding analogs for the great economists from the history of the NBA. And they do the same in reverse for basketball's own GOATs. Which economist changed the nature of the field similar to the way Steph Curry set off the three-point revolution? Is there an economist whose comprehensive genius rivaled the ability of LeBron James to engineer exactly the outcome he wants on the court? What basketball player matched the charisma, brilliance, and even investment success of Keynes? 
And why does Cardiff argue that Tyler himself is the Charles Barkley of economists despite their differences in personality, size, and other obvious dimensions? 
All throughout the chat, Tyler and Cardiff are exploring the common traits that define greatness in both hoops, the social sciences, and perhaps other domains. A treat for fans of either economics or hoops, or who simply enjoy the virtues of fandom itself. 
Related links: GOATMarginal RevolutionThe Book of BasketballThe Kobe Question Hosted on Acast. See acast.com/privacy for more information.

If econs could hoop

Seth Stephens-Davidowitz has unusually written an unusual book.
The data analysis included in "Who Makes the NBA?: Data-Driven Answers to Basketball's Biggest Questions" normally would have taken Seth, a trained economist, multiple years of writing and running code. But because of new artificial intelligence tools, he finished the book in just thirty days. And he used AI tools not just for the coding, but also for the artwork, copy editing, and even to write the appendix.
He discusses with Cardiff the lessons he learned about using AI, and what such accelerated productivity might mean for the future of the labor market. 
Then they discuss the actual findings in the book, an investigation into the backgrounds of the basketball players who make it to the NBA and succeed when they get there. How much of success is genetic? What accounts for the NBA's market failures—the traits of players who get paid too much and too little relative to their contributions? Why do some foreign countries have such astonishing success at sending players to the NBA? Does the choice of college really matter for future success? 
The answers to these questions are surprisingly revealing about the experiences of non-basketball players, and about the relationships between luck, skill, parenting, undiscovered talent, the economy, and other familiar variables. 
Related links: Seth's home pageWho Makes the NBA? (Amazon page)
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Hoop dreams of electric sheep

Martha Gimbel and Gopi Shah Goda were formerly economists within the White House Council of Economic Advisors, or CEA. 
They look back on their time inside an important economic policymaking institution, telling Cardiff about: 
Their favorite projectsToughest assignmentsThe relationship between CEA and other economic policymakersThe difference between academia and policy work What they might change about itCommon misconceptions about the work of economists
 And Martha clears up a big misunderstanding about an infamous graph controversy. All this and more! 
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When talent is no longer wasted

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