Domain: lse.ac.uk
Stories and comments across the archive that link to lse.ac.uk.
Stories · 5
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Authors of Controversial 'Seattle Minimum Wage' Study Revise Their Conclusions (bloombergquint.com)
Seattle's increase in the minimum wage "brought benefits to many workers employed at the time, while leaving few employed workers worse off," reports the New York Times -- citing a new study by the same researchers who'd claimed last year that workers were hurt by the wage increase.
"The dire warnings about minimum-wage increases keep proving to be wrong," argues a Bloomberg columnist, in an article shared by gollum123: The authors behind an earlier study predicting a negative impact have all-but recanted their initial conclusions. However, the authors still seem perplexed about why they went awry in the first place.... The increase was an "economic death wish" that was going to tank the expansion and kill jobs, according to the sages at conservative think tanks... Despite their dire forecasts, not only were new restaurants not closing, they were in fact opening; employment in food services and drinking establishments has soared...
As we noted in 2017, the study's fatal flaw was that its analysis excluded large multistate businesses with more than one location. When thinking about the impact of raising minimum wages, one can't simply omit most of the biggest minimum-wage employers in the region, such as McDonald's and other fast-food chains, or Wal-Mart and other major retailers... There were two other glaring defects in the first study that are worth mentioning. The first is that its findings contradicted the vast majority research on minimum wages. As was demonstrated back in 1994 by economists Alan Krueger and David Card, modest, gradual wage increases have not been shown to reduce employment or hours worked in any significant way. Ignoring that body of research without a very good reason made the initial University of Washington study questionable at best. Second, there potentially is a problem with having a lead researcher -- economist Jacob Vigdor, whose affiliations among others include the right-leaning Manhattan Institute -- whose impartiality is open to question. Long-time Slashdot reader Martin S. writes that "When the UK introduced the minimum wage we had the same doom and gloom scenarios," adding that "the reality was very different." He argues that increasing the minimum wage "increased productivity so business did not suffer, reduced government spending on benefits, and increased the the velocity of money improving the overall economy.
"It had no measurable effect on unemployment." -
Schools That Ban Mobile Phones See Better Academic Results
HughPickens.com writes: Jamie Doward reports at The Guardian that according to a recent study in the UK, the effect of banning mobile phones from school premises adds up to the equivalent of an extra week's schooling over a pupil's academic year with the test scores of students aged 16 improved by 6.4% after schools banned mobile phones, "We found that not only did student achievement improve, but also that low-achieving and low-income students gained the most. We found the impact of banning phones for these students was equivalent to an additional hour a week in school, or to increasing the school year by five days." In the UK, more than 90% of teenagers own a mobile phone; in the US, just under three quarters have one. In a survey conducted in 2001, no school banned mobiles. By 2007, this had risen to 50%, and by 2012 some 98% of schools either did not allow phones on school premises or required them to be handed in at the beginning of the day. But some schools are starting to allow limited use of the devices. New York mayor Bill de Blasio has lifted a 10-year ban on phones on school premises, with the city's chancellor of schools stating that it would reduce inequality.
The research was carried out at Birmingham, London, Leicester and Manchester schools before and after bans were introduced (PDF). It factored in characteristics such as gender, eligibility for free school meals, special educational needs status and prior educational attainment. "Technological advancements are commonly viewed as increasing productivity," write Louis-Philippe Beland and Richard Murphy. "Modern technology is used in the classroom to engage students and improve performance. There are, however, potential drawbacks as well, as they could lead to distractions." -
Gigabit Internet Connections Make Property Values Rise
Jason Koebler writes: When families go to buy a new home, they're most often looking for a couple things: Good schools, a safe neighborhood, maybe something that's near public transportation. And, increasingly and undeniably, access to gigabit internet service. A study by RVA LLC Market Research and Consulting found that fiber optic internet adds roughly $5,250 to the value of a $300,000 home. "It's getting to the point where, if my neighboring community has a gig and we're still doing satellite, the property value in that town is going to go up," Deb Socia, director of Next Century Cities, a coalition of cities trying to provide gigabit internet speeds to their citizens, said. "You're going to lose people and you're going to lose revenue without it. I'm hearing it from folks in different chambers of commerce, in real estate, in politics." -
More Evidence That Piracy Can Increase Sales
Socguy writes "The London School of Economics has published a new study (PDF) which shows that the claims about digital downloading killing music and movies are overblown. In fact, there is new evidence to indicate that it actually generates more income in certain cases. 'While it acknowledges that sales have stagnated in recent years, the report points out that the overall revenue of the music industry in 2011 was almost $60 billion US, and in 2012, worldwide sales of recorded music increased for the first time since 1999, with 34 per cent of revenues for that year coming from digital channels such as streaming and downloads. "The music industry may be stagnating, but the drastic decline in revenues warned of by the lobby associations of record labels is not in evidence," the report says. ... The growing use of streaming, cloud computing, so-called digital lockers that facilitate the sharing of content and sites that offer a mix of free and paid methods of getting content will, the study predicts, spur the entertainment industries to shift their focus from pursuing illegal downloading to creating more legal avenues for getting content online.'" -
The Genetics of Happiness
Hugh Pickens writes "Studies comparing identical twins with non-identical twins have helped to establish the heritability of many aspects of behavior. Recent work suggests that about one third of the variation in people's happiness is heritable. Jan-Emmanuel De Neve has taken the study a step further, picking a popular suspect — the gene that encodes the serotonin-transporter protein, a molecule that shuffles a brain messenger called serotonin through cell membranes — and examined how variants of the 5-HTT gene affect levels of happiness. The serotonin-transporter gene comes in two functional variants—long and short and people have two versions (known as alleles) of each gene, one from each parent. After examining genetic data from more than 2,500 participants in the National Longitudinal Study of Adolescent Health, De Neve found that people with one long allele were 8% more likely than those with none to describe themselves as very satisfied with life and those with two long alleles were 17% more likely of describing themselves as very satisfied. Interestingly enough, there is a notable variation across races with Asian Americans in the sample having on average 0.69 long genes, white Americans with 1.12, and black Americans with 1.47. 'It has long been suspected that this gene plays a role in mental health but this is the first study to show that it is instrumental in shaping our individual happiness levels (PDF),' writes De Neve. 'This finding helps to explain why we each have a unique baseline level of happiness and why some people tend to be naturally happier than others, and that's in no small part due to our individual genetic make-up.'"