The Economic Gains from Equity Assignment
- Country :
Australia
The Economic Gains from Equity
The discussion in Buckman et al. (2021) comes from the idea of economists that labor market policies like immigration policies, affirmative action measures, and labor market institutions improve the economic situation of all. Their results indicate that ensuring all Americans have an equitable opportunity to participate in the economy is an economically significant way to increase aggregate prosperity.
Buckman et al. (2021) use data from the Current Population Survey (CPS, 1990-2019) and estimate the impact on aggregate output of making the labor market outcomes (employment, hours worked, earnings, educational attainment, and educational utilization) of Black, Hispanic, and other minority groups (API+) at least as favorable as those of the white population, the long-standing majority group in the United States. Use the data_ST23_phd.dta data and the paper of Buckman et al. (2021) to answer the following questions:
- Create a figure (similar to figure 1 of the paper) showing the fraction of workers by group (Whites, Blacks, Hispanics, API+) over time (both men and women together). Similarly, show graphically the trend of average wages by group and over time. Use the following trimming rule of DiNardo et al. (1996) to adjust wages:
sum cpi if year==2019
gen cpi2019=r(mean)
gen rwage2=(wage/cpi)*cpi2019
What conclusions do you draw from the trends in these two figures? - What is according to Buckman et al. (2021) the contribution of their paper to the related literature? Clearly state what their contributions are and how they achieve or claim to achieve them.
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