3 ms·
This is just yet another demographic map of the United States that happens to be using an extremely high quality data set. If anyone wonders why Raj Chetty can
by User23 7y ago
This is just yet another demographic map of the United States that happens to be using an extremely high quality data set.
If anyone wonders why Raj Chetty can't seem to reach the obvious conclusions the data points to, it's because his job and reputation depends on him not doing so. So instead the work has absolutely no explanatory power and just suggests relocating poor performing people to good performing zip codes. Why that won't reduce inequality is left as an exercise for the reader.
Lest anyone get the wrong idea, I'm criticizing because this supposed solution will be harmful to everyone. I want to improve outcomes for those who are doing poorly, this just won't do that.
- bassman9000 7y agoAnd the premise may be wrong altogether https://www.aei.org/publication/a-new-fed-report-suggests-american-upward-mobility-is-better-than-you-think/ https://www.aei.org/publication/a-new-fed-report-suggests-am... Measuring real growth properly is useful for addressing a host of questions. For example, existing studies use measured inflation to calculate the real income of children relative to their parents. Chetty et al. (2017) find that 50% of children born in 1984 achieved higher incomes than their parents at age 30. Adjusting for missing growth would raise the real income of children about 17% relative to their parents, increasing the fraction of those who do better than their parents by a meaningful amount. Thus, to the extent that inflation is overstated due to imputed values, a larger fraction of children appear to be better off economically than their parents. This improvement in economic welfare can shine a bit more positive light on current conditions, despite the gloom of slower productivity growth.