Tax credits for higher education don’t help

“There are many ways a society can finance college, and over time the US has tried almost all of them.”  Thus begins a new paper, “Tax Benefits for College Attendance,” by Susan Dynarski and Judith Scott-Clayton. American governments currently subsidize higher education in three ways.  First, state and federal governments directly fund a variety of higher education institutions, including … [Read more...]

Everyone pays for unemployment insurance, not just businesses

Source: Flikr Creative Commons The Minnesota House and Senate passed, and Governor Dayton signed, a 26-week extension of unemployment benefits for Iron Range miners and a reduction in unemployment insurance payments for businesses.  I heard a story about it this morning on MPR and thought I heard something incorrectly.  I went to the transcript and I wasn’t wrong.  Here is what brought me up … [Read more...]

New work on undocumented immigrants and the American labor force

Source: Flikr Creative Commons Donald Trump calls for deporting all 11 million undocumented immigrants.  What effects would this have on the US economy? To answer this question, we first need to have a sense of the labor supply behavior of undocumented immigrants.  That is, we need to know information such as their employment rate and their sensitivity to changes in US wages (i.e. their labor … [Read more...]