Subprime outcomes: turmoil in the mortgage market

Until 2007, few Americans had probably heard the word “subprime” - including many homeowners who would come to learn that their own mortgage was a subprime mortgage. Today, subprime mortgages are much discussed because they lie at the center of the turmoil that roiled credit markets in 2007 and 2008.Subprime mortgage

U. S. labor supply in the twenty-first century

The American labor force will be transformed as the twenty-first century unfolds, a change that will confront policymakers and business firms with new challenges and new opportunities. The impending slowdown of labor force growth that will accompany the retirement of the baby boom generation already is playing a central role in national debates over the future solvency of Social Security and Medicare, as well as U.S. immigration policies. But labor supply changes will be influenced by other dimensions as well. In the coming decades, American workers are likely to be, on average, older and better educated than today’s labor force. The globalization of labor markets is already opening new employment opportunities for some Americans and changing the wage rates paid to others. The production technologies and personnel policies adopted by tomorrow’s firms will undoubtedly reflect the numbers and types of workers available for employment.Labor supply ; Baby boom generation

The Surprising Symmetry of Gross Job Flows

A large literature attempts to explain the asymmetric behavior of job destruction and job creation over the business cycle. This paper contends that much of this asymmetry is spurious. Analyzing gross flows in relation to the net flow virtually eliminates cyclical asymmetry in annual data and substantially reduces it in quarterly data. To the extent that gross flows are symmetric, there is a fundamental identification problem in moving between gross flows and the net flow that is reminiscent of the earlier empirical literature on sectoral shifts.

Why Did So Many People Make So Many Ex Post Bad Decisions?

This paper was prepared for the conference, “Rethinking Finance: New Perspectives on the Crisis, organized by Alan Blinder, Andy Lo and Robert Solow and sponsored by the Russell Sage and Century Foundations

Arbitraging a Discriminatory Labor Market: Black Workers at the Ford Motor Company, 1918–1947

The 1918-47 employee records of the Ford Motor Company provide a rare opportunity to study a firm willing to hire black workers when similar firms would not. The evidence suggests that Ford did profit from discrimination elsewhere, but not by paying blacks less than whites. An apparent "wage-equity constraint" prevailed, resulting in virtually no racial variation in wages inside Ford. An implication was that blacks quit Ford jobs less often than whites, holding working conditions constant. Arbitrage profit came from exploiting this nonwage margin, as Ford placed blacks in hot, dangerous foundry jobs where quit rates were generally high

XO-5b: A Transiting Jupiter-sized Planet With A Four Day Period

The star XO-5 (GSC 02959-00729, V=12.1, G8V) hosts a Jupiter-sized, Rp=1.15+/-0.12 Rjup, transiting extrasolar planet, XO-5b, with an orbital period of P=4.187732+/-0.00002 days. The planet mass (Mp=1.15+/-0.08 Mjup) and surface gravity (gp=22+/-5 m/s^2) are significantly larger than expected by empirical Mp-P and Mp-P-[Fe/H] relationships. However, the deviation from the Mp-P relationship for XO-5b is not large enough to suggest a distinct type of planet as is suggested for GJ 436b, HAT-P-2b, and XO-3b. By coincidence XO-5 overlies the extreme H I plume that emanates from the interacting galaxy pair NGC 2444/NGC 2445 (Arp 143).Comment: 10 pages, 9 Figures, Submitted to Ap