Is the United States falling behind in the global race for scientific and engineering talent? Are U.S. employers facing shortages of the skilled workers that they need to compete in a globalized world? Such claims from some employers and educators have been widely embraced by mainstream media and political leaders, and have figured prominently in recent policy debates about education, federal expenditures, tax policy, and immigration. Falling Behind? offers careful examinations of the existing evidence and of its use by those involved in these debates.
These concerns are by no means a recent phenomenon. Examining historical precedent, Michael Teitelbaum highlights five episodes of alarm about "falling behind" that go back nearly seventy years to the end of World War II. In each of these episodes the political system responded by rapidly expanding the supply of scientists and engineers, but only a few years later political enthusiasm or economic demand waned. Booms turned to busts, leaving many of those who had been encouraged to pursue science and engineering careers facing disheartening career prospects. Their experiences deterred younger and equally talented students from following in their footsteps—thereby sowing the seeds of the next cycle of alarm, boom, and bust.
Falling Behind? examines these repeated cycles up to the present, shedding new light on the adequacy of the science and engineering workforce for the current and future needs of the United States.
This paper analyzes the role of establishments in the upward trend in dispersion of earnings that has become a central topic in economic analysis and policy debate. It decomposes changes in the variance of log earnings among individuals into the part due to changes in earnings among establishments and the part due to changes in earnings within establishments. The main finding is that much of the 1970s–2010s increase in earnings inequality results from increased dispersion of the earnings among the establishments where individuals work. Our results direct attention to the role of establishment-level pay setting and economic adjustments in earnings inequality.
relationship to intergenerational mobility. Panel Study of Income Dynamics (PSID) 1985
and 2011 files are used to examine the change in the share of workers in a middle-income
group (defined by persons having incomes within 50 percent of the median) and use a
shift-share decomposition to explore how the decline of unionism contributes to the
shrinking middle class. The files are also used to investigate the correlation between
parents’ union status and the incomes of their children. Additionally, federal income tax
data is used to examine the geographical correlation between union density and
intergenerational mobility. Findings include that union workers are disproportionately in
the middle-income group or above, and some reach middle-income status due to the
union wage premium; the offspring of union parents have higher incomes than the
offspring of otherwise comparable non-union parents, especially when the parents are
low-skilled; and offspring from communities with higher union density have higher
average incomes relative to their parents compared to offspring from communities with
lower union density. These findings show a strong, though not necessarily causal, link
between unions, the middle class, and intergenerational mobility.
Much attention has been given by pension funds and other institutional investors to governance and in some measure environmental considerations in their investment-related decisions, spurred by either by normative concerns and/or their impact on financial performance. However, very little has been done in the latter terms with respect to what are often termed social considerations, which include work-related matters. This publication represents an effort to begin to remedy that problem.
More particularly, of the many published studies of human capital policies, the paper examines 92 that focus on the links to corporate financial performance. A large majority of the studies – covering a period of two decades and encompassing dozens of countries and industries - reported positive correlations. The paper summarizes key aspects of the research, reviews the methods and approaches they employ, and discusses strengths of and limitations to the findings. Overall, the paper suggests that human capital management can be material to a company’s financial performance. It recommends the kinds of information which investors should seek – among them, about the array of a company’s human capital policies, their relationship to one another, and their link to the company’s business strategy, and measures outcomes and financial impacts – and companies should provide.