Monthly Archives

March 2019

Research Findings

How inequality leads to its own legitimization


March 12, 2019

Research has demonstrated a dramatic rise of income inequality in the West. Today, across advanced capitalist countries, the top ten percent of households take home about a third of all income and own two-thirds of all wealth. 

Despite what scholars, journalists and some politicians consider a worrying trend, there is no evidence that people have grown more concerned about inequality. In fact, citizens of more unequal societies are less concerned than those in egalitarian societies. How to make sense of this paradox?

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Research Findings

Climate Change Isn’t Hurting Everyone: White Middle Class Americans Benefit from Natural Disasters

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March 7, 2019

Recently, the United Nations’ Climate Change Conference in Poland, the U.S. National Climate Assessment Report, and severe forest fires, hurricanes and winter storms have called attention to just how devastating climate change already is and will continue to be. Yet, what these events often fail to highlight is who benefits from this devastation. Understanding that piece of the puzzle is critical for building better policy approaches to climate change.

One of the most tangible effects of climate change in the United States is the mounting cost and frequency of high-impact natural hazards. In 2018 alone, mudslides engulfed large segments of Montecito, Hurricane Florence flooded a large swath of the Carolinas, Hurricane Michael destroyed communities along the Gulf coast, and California experienced some of the most destructive wildfires in history. These are just some of the most widely known events. Hundreds of other natural hazards caused millions more in damage and loss of life across the country.

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Research Findings

How mobility of R&D workers opens new avenues

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March 3, 2019

R&D employees moving from one employer to another is a frequent, yet controversial event. On the one hand, inventor mobility has been shown to have a positive effect on overall innovative activity. On the aggregate level, the fast development of new technologies in regional clusters such as Silicon Valley is driven by dynamic labor markets and high turnover rates of engineers, programmers, or developers. On the firm-level, learning-by-hiring is a fast and efficient way to acquire external knowledge.

From the perspective a firm that loses key employees, outbound mobility, on the other hand, creates costs of finding suitable replacements and is associated with the risk of losing not only employees but also crucial knowledge. Knowledge that potentially is employed by the hiring firm to compete in related markets. Recent media coverage has revealed a number of lawsuits caused by one firm’s R&D employees moving to a competitor in industries ranging from semiconductors and mobile phones to pharmaceuticals and autonomous-driving vehicles.

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