PERI
PERI Announces New Program on Gender and Care Work

We are pleased to announce that Nancy Folbre will be formally joining PERI as the Director of the PERI Program on Gender and Care Work. Folbre, Professor Emerita of Economics at UMass Amherst, is a former recipient of a MacArthur Fellowship, and the author of many books, including The Field Guide to the U.S. Economy and The Invisible Heart: Economics and Family Values. She also contributed weekly to The New York Times’ Economix blog from 2009 - 2014. Her research interests are in feminist theory and political economy, as well as care labor and other non-market work. 

>>Read our interview with Nancy Folbre about her new PERI program

Quantifying Family Contributions to Economic Output

Conventional measures of Gross Domestic Product (GDP) do not capture a number of contributions to economic output and family living standards. These non-market activities and expenses are ignored on the grounds that they are elements of personal well-being. Nancy Folbre, Director of PERI’s Program on Gender and Care Work, writes that measuring replacement cost estimates of non-market work and income flows within families is necessary for a more accurate understanding of economic growth, government spending, and inequality in living standards. Folbre presents a schematic microeconomic model that takes non-market work and income into account.

>>> Read Accounting for Care: A Research and Survey Design Agenda

What Factors Led to Profits in India’s Manufacturing Sector?

Growth in capitalist economies is tied to profitability. Even though capitalism has not fully taken root in developing econonomies, the organized manufacturing sector in India is clearly a capitalist one. What has driven profitability in this sector in the last three decades? Deepankar Basu and Debarshi Das find that profits have increased modestly, at a rate of 1 percent per year. During this period, they point to a long-run trend of regressive income distribution as a driver of profitability, as well as medium and short run changes determined by technological factors. 

>> Read Profitability in India’s Organized Manufacturing Sector: The Role of Technology, Distribution and Demand

External Financial Shocks in Developing Economies

One of the most significant results of the global financial crisis and Great Recession of 2007-09, was that, in general, developing countries survived the crisis with less damage than the advanced economies. Why did this occur? Hasan Cömert and Mehmet Selman Çolak argue that a main factor was that the developing countries, in general, experienced relatively moderate financial account shocks, both in terms of magnitude and duration, during the crisis. They discuss the reasons for this, and implications of this result for future economic prospects and policymaking.  
>> Read “Can Financial Stability be Maintained in Developing Countries After the Global Crisis?: The Role of External Financial Shocks”

Gerald Epstein's Distinguished Faculty Lecture

On Tuesday, March 24, Professor Gerald A. Epstein, Co-Director of PERI, presented "When Big is Too Big: Do the Financial System's Social Benefits Justify Its Size?"

According to standard economic theory, the financial system encourages productive investment while also helping families and businesses to reduce risk and pursue opportunities that would otherwise be beyond their means. The Great Financial Crisis of 2008, however, brought these assumptions into doubt and raised a key question: just what are the financial sector's contributions to society? Professor Epstein will argue that since 1980 the financial sector has increasingly failed to promote social well-being, and he will propose some corrective restructurings.

At the conclusion of the lecture, Professor Epstein was presented with the Chancellor's Medal, the highest honor bestowed to faculty by the campus.

>>Read more information about the event

>>Watch the lecture in full 

A $15 U.S. Minimum Wage Without Job Losses Can Work

Pollin and Wicks-Lim examine whether U.S. fast-food businesses could adjust to an increase in the federal minimum wage from its current level of $7.25 per hour to $15 an hour without having to lay off workers.  They show how, through a four-year phase-in process, the fast-food industry could adjust to a $15 minimum wage without resorting to any layoffs or even cuts in profitability.  Rather, the fast-food industry could fully absorb the cost increases generated by a $15 minimum wage over the four-year period through a combination of turnover reductions along with modest increases in both sales growth and prices.

>>Read "A $15 U.S. Minimum Wage: How the Fast-Food Industry Could Adjust Without Shedding Jobs"