November 28, 2018
New report challenges idea that productivity has no link with income
A new IZA World of Labor report published today suggests that workers’ effort may be more responsive to wage incentives and therefore the efficiency costs of progressive labour income taxation larger than previously thought. A fundamental question in economic policy is how labour supply responds to changes in remuneration. The responsiveness of labour supply determines the size of the employment impact and efficiency loss of progressive income taxation for example. The economist Tess Stafford of the University of New South Wales, Australia, summarises a number of recent studies of independent contractors’ labour supply which confirm a key prediction of economic theory: workers work more (in fact, quite a bit more) when earnings are temporarily high.
November 18, 2018
What The Midwich Cuckoos can teach us about Millennials
by Mark Eltringham • Comment, Workplace
John Wyndham’s 1957 novel The Midwich Cuckoos is the story of a fictional English village in which, following an unexplained event that causes everybody within Midwich to fall unconscious, all of the women in the village fall pregnant and 61 children are subsequently born all at the same time. The children bear absolutely no physical resemblance to their parents, with pale skin, blond hair and piercing eyes. As they grow older it also becomes apparent that they are strange, emotionless and have a telepathic bond with each other. It’s not much of a spoiler to tell you that things don’t go well. The only rationale for what had happened to create the children in the first place is an unexplained incident of xenogenesis – the birth of offspring unlike their parents. Something similar must have happened on a global scale from the beginning of the 1980s onwards, at least based on what we are told about Millennials.
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