17 October 2016
Analyzing data from Norway’s criminal justice system, Manudeep Bhuller
, Gordon B. Dahl
, Katrine V. Løken
, and Magne Mogstad
find that imprisonment decreases the probability that an individual will reoffend within five years by 27 percentage points, especially when individuals who were not working prior to incarceration participate in programs directed at improving employability and reducing recidivism.
14 October 2016
Respondents to a survey developed by Maureen Cropper
, Alan Krupnick
, and William Raich
were more averse to inequality in health risks than to inequality in income. The mean respondent would accept a 22 percent increase in average health risk if risk were to be equally distributed in the population, but a decrease of only 5 percent in income if incomes were to be equally distributed.
13 October 2016
Studies of U.S. intergenerational mobility focus almost exclusively on the transmission of disadvantage from parents to children, in part because until recently there was insufficient data to assess the influence of earlier generations. Joseph Ferrie
, Catherine Massey
, and Jonathan Rothbaum
analyze data spanning 1910 to 2013 and find a substantial “grandparent effect” for cohorts born since 1920, as well as some evidence of a “great-grandparent effect.”
12 October 2016
One of the policies adopted after the global financial crisis, the Bank for International Settlement’s liquidity coverage ratio (LCR), requires that net short-term uninsured bank debt be backed one-for-one with U.S. Treasuries or other high-quality bonds. Drawing on the experience with similar regulations during the U.S. National Banking Era,Gary Gorton
and Tyler Muir
conclude that the LCR is unlikely to reduce financial fragility, and may increase it.
11 October 2016
Although job seekers are 35 percent less likely to apply to a job opening when it is 10 miles from their zip code than when it is in their zipcode, most job seekers are close to some vacancies. Geographic mismatch is therefore only a minor driver of aggregate unemployment, a study by Ioana Marinescu
and Roland Rathelot
finds. Relocating job seekers to locations closer to vacancies would decrease unemployment by just 5.3 percent.