↳ Isas

October 20th, 2018

↳ Isas

Action Plan

WHAT IS A FAMILY?

Competing definitons of the term have vast policy implications

The formal definition of family is “blood, marriage, or adoption,” but that leaves out many possible arrangements, including families of unmarried people, foster children, co-ops, and, until 2015, gay partnerships. In the 1970s, family law became more open to “functional families” outside the formal definition, while zoning law kept to the strictly formal. Legal historian KATE REDBURN writes, “These contradictions leave critical family law doctrines unstable in thirty-two states.”

In a recent working paper, Redburn examines how these changes came to be, and looks more generally at how legal regimes exist within connected networks and influence each other despite traditional boundaries of scale (local, state, etc.) and subject (family law, zoning law):

“Viewed through a broader lens, this story might suggest lessons for law and social movements. While progressives oriented their campaigns at the state level, homeowners imbued local governance with conservative social politics in defense of their prejudices and property values. Neither movement, nor the judges adjudicating their case, nor the legislators revising state and local statutes, paid adequate attention to the interlocking nature of legal doctrines, rendering their movements less successful than they have previously appeared. Though we tend to think of legal fields as distinct regimes, ignoring the multifaceted ways that doctrines overlap, connect, and contradict each other can have perilous consequences. Their blind spot has has grown to encompass millions of Americans.”

Redburn’s case study provides ample evidence that micro-level legal conflicts can uphold and alter legal understandings:

“Motivated constituencies of voters and their elected representatives can produce legal change quite out of sync with social trends. Such was the case in the zoning definition of family in the late 1960s and early 1970s. Despite social change resulting in more functional families, protective homeowners and the conservative movement successfully shifted zoning law away from the functional family approach.”

⤷ Full Article

October 13th, 2018

Answer to the Question

CLAIMS THAT CAN'T BE TESTED

What policy lessons can we derive from UBI experiments?

Political philosopher KARL WIDERQUIST of Georgetown has published a 92-page book examining historical and current basic income pilots, the difficulties of extrapolating from policy research to policy, and “the practical impossibility of testing UBI.”

In his introduction, Widerquist mentions that the challenges for translating research into policy stem not only from the science, but also from the audience’s moral preferences and judgments, which are particularly heightened in the basic income discourse:

“Except in the rare case where research definitively proves a policy fails to achieve its supporters’ goals, reasonable people can disagree whether the evidence indicates the policy works and should be introduced or whether that same evidence indicates the policy does not work and should be rejected. This problem greatly affects the UBI discussion because supporters and opponents tend to take very different moral positions. Many people, including many specialists, are less than fully aware of the extent to which their beliefs on policy issues are driven by empirical evidence about a policy’s effects or by controversial moral evaluation of those effects. For example, mainstream economic methodology incorporates a money-based version of utilitarianism. Non-money-based utilitarianism was the prevailing ethical framework when basic mainstream economic techniques were developed but it lost prominence decades ago.”

Widerquist also writes lucidly on considerations for how to communicate scientific caveats and takeaways. The full book is available here. ht Lauren who comments: "It’s incredibly difficult to test every aspect of many, many policies (including most that are currently at full national scale). Testing a given welfare policy arguably only has to get decision makers to a point where it can be determined that the policy substantially helps those who need it and doesn’t hurt anyone as a result."

  • Activist Stanislas Jourdan spoke at the European Parliament in September about a basic income for Europe. Video of the presentation is here; slides are here. On the financing question, Jourdan proposes VAT ("already the most harmonized tax at EU level, large and reliable tax base"), as well as a European Corporation Tax, carbon taxes, and "quantitative easing for the people."
 ubi metrics

REVENUE POSITIVE

Federal student aid pays for itself

⤷ Full Article

January 6th, 2018

Anonymous Power Game

THE YEAR IN ECONOMICS

Nominations from top economists, including selections by Raj Chetty, Sendhil Mullainathan, and Angus Deaton

One favorite from this excellent round-up is by Hulten and Nakamura on metrics, selected by Diane Coyle (we previously sent her Indigo Prize paper):

Accounting for Growth in the Age of the Internet: The Importance of Output-Saving Technical Change by Charles Hulten and Leonard Nakamura

Main finding: Living standards may be growing faster than GDP growth.
Nominating economist: Diane Coyle, University of Manchester
Specialization: Economic statistics and the digital economy
Why?: “This paper tries to formalize the intuition that there is a growing gap between the standard measure of GDP, capturing economic activity, and true economic welfare and to draw out some of the implications.”

Robert Allen's "Absolute Poverty: When Necessity Displaces Desire" is another metrics-related piece on the list.

Also noteworthy, on the future of work:

Valuing Alternative Work Arrangements by Alexandre Mas and Amanda Pallais

Main finding: The average worker does not value an Uber-like ability to set their own schedule.
Nominating economist: Emily Oster, Brown University
Specialization: Health economics and research methodology
Why? “This paper looks at a question increasingly important in the current labor market: How do people value flexible work arrangements? The authors have an incredibly neat approach, using actual worker hiring to generate causal estimates of how workers value various employment setups.”

Full piece by DAN KOPF here.

⤷ Full Article

December 23rd, 2017

The Year in Review

INCOME SHARE AGREEMENTS Purdue, BFF, the national conversation “Long discussed in college policy and financing circles, income share agreements, or ISAs, are poised to become more mainstream.” That's from a September Wall Street Journal article . 201 …
⤷ Full Article

December 9th, 2017

Un Coup de dés

THE FUTURE OF UNDERGRADUATE EDUCATION

A new report argues that quality, not access, is the pivotal challenge for colleges and universities

From the American Academy of Arts and Sciences, a 112-page report with "practical and actionable recommendations to improve the undergraduate experience":

"Progress toward universal education has expanded most recently to colleges and universities. Today, almost 90 percent of high school graduates can expect to enroll in an undergraduate institution at some point during young adulthood and they are joined by millions of adults seeking to improve their lives. What was once a challenge of quantity in American undergraduate education, of enrolling as many students as possible, is now a challenge of quality—of making sure that all students receive the rigorous education they need to succeed, that they are able to complete the studies they begin, and that they can do this affordably, without mortgaging the very future they seek to improve."

Link to the full report. Co-authors include Gail Mellow, Sherry Lansing, Mitch Daniels, and Shirley Tilghman. ht Will, who highlights a few of the report's recommendations that stand out:

  • From page 40: "Both public and private colleges and universities as well as state policy-makers [should] work collaboratively to align learning programs and expectations across institutions and sectors, including implementing a transferable general education core, defined transfer pathway maps within popular disciplines, and transfer-focused advising systems that help students anticipate what it will take for them to transfer without losing momentum in their chosen field."
  • From page 65: "Many students, whether coming straight out of high school or adults returning later to college, face multiple social and personal challenges that can range from homelessness and food insecurity to childcare, psychological challenges, and even imprisonment. The best solutions can often emerge from building cooperation between a college and relevant social support agencies.
  • From page 72: "Experiment with and carefully assess alternatives for students to manage the financing of their college education. For example, income-share agreements allow college students to borrow from colleges or investors, which then receive a percentage of the student’s after-graduation income."
  • On a related note, see this 2016 paper from the Miller Center at the University of Virginia: "Although interest in the ISA as a concept has ebbed and flowed since Milton Friedman first proposed it in the 1950s, today it is experiencing a renaissance of sorts as new private sector partners and institutions look to make the ISA a feasible option for students. ISAs offer a novel way to inject private capital into higher education systems while striking a balance between consumer preferences and state needs for economic skill sets. The different ways ISAs can be structured make them highly suitable as potential solutions for many states’ education system financing problems." Link.
  • Meanwhile, Congress is working on the reauthorization of the Higher Education Act: "Much of the proposal that House Republicans released last week is controversial and likely won’t make it into the final law, but the plan provides an indication of Congressional Republicans’ priorities for the nation’s higher education system. Those priorities include limiting the federal government’s role in regulating colleges, capping graduate student borrowing, making it easier for schools to limit undergraduate borrowing — and overhauling the student loan repayment system. Many of those moves have the potential to create a larger role for private industry." Link.
⤷ Full Article