Our projects are designed to empower policy makers to create positive change. With a focus on collaboration and outreach, we provide original, standards-based research on key policy issues.
SCEPA joined with the Economic Policy Institute on Capitol Hill to brief congressional staff and policy experts on tax expenditures, or incentives given through the tax code without scrutiny by Congress.
SCEPA economists are working on the prospects for a more progressive economic order to emerge from the shock of the recession. They have published papers and documents that place current events in a longer-term context as well as policy proposals to deal with short-term concerns. They are also documenting the emerging discussion of how the discipline of economics is reacting to the Great Recession and the questioning of conventional economic analysis.
Lance Taylor, a SCEPA Faculty Fellow, presents an overview of his new book, Maynard’s Revenge, in a Google Tech Talk.
The book, published this November by Harvard University Press, is a timely analysis of mainstream macroeconomics, posing the need for a more useful and realistic economic analysis that can provide a better understanding of the ongoing global financial and economic crisis.
The government spends $143 billion through tax breaks in an effort to expand pension coverage and security. Yet, over half of the American workforce does not have a pension. Retirement insecurity hurts business plans, workers’ lives and retiree well-being. Reform is needed.
SCEPA’s Guaranteeing Retirement Income Project, sponsored by the Rockefeller Foundation and in collaboration with Demos and the Economic Policy Institute, has a plan to guarantee safe and secure retirement income for all Americans.
- Published on Monday, December 08, 2014
This week's Worldly Philosopher, Kyle Moore, exposes the disproportionate burden raising the retirement age would put on Black Americans.
Recent years have seen a spike in both traditional and social media coverage of violence against black youths. The creation of the viral hashtag #BlackLivesMatter, most recently associated with the Ferguson, MO police killing of unarmed black teenager Michael Brown, captures this shift in public attention towards the long prevalent issue.
There is another segment of the black population whose lives are being undervalued in 2014. Elderly blacks' lives are not properly accounted for as changes to retirement policy are considered in Washington. Policymakers are using the fact that the "average" American's life span is increasing to justify raising the retirement age to 70, in spite of black Americans not sharing equally in this increase in life span. If black lives do indeed matter for the old as well as the young, then policymakers will have to grapple with the persistent and growing disparities in life span and sickness between the elderly black and white populations.
Black Americans Live Shorter Lives than White Americans—For Men, the Gap is Growing
Even though the "average" American is living longer at age 65, there are still significant gaps in life span between elderly black and white American men and women. In a policy note on racial disparities in longevity (life span) and mortality (risk of death), I look at the creation of a gap in expected years of life between black and white men at age 65. Starting in 1950, this gap in longevity has grown steadily to almost two years in 2010. For women the changes have been more mixed, with a gap in life span growing between 1950 and 1980, and shrinking between 1980 and 2010 to a one year difference.
Black Americans Don't Make it to Retirement Without Activity Limitations
In a follow-up note on racial disparities in morbidity (sickness), I look at black and white Americans' expected years free from activity limitations in relation to the current full retirement age. While Whites can expect to live 67 years without being somehow debilitated by sickness, just barely reaching the current full retirement age, Blacks can only expect about 61 years. This means elderly Blacks face the reality of having to either work while physically impaired, or applying for often stigmatized disability benefits.
If #BlackLivesMatter to Policymakers, Retirement Policy Should Account for Racial Disparities
Throughout the two policy briefs mentioned and a longer white paper on the subject, I discuss what researchers consider to be the major causes for these trends, and potential ways to reverse them. Differences in socioeconomic status account for over two-thirds of the gap in life span and for a significant portion of the differences in activity limitations as well. That being said, measures to address gaps in income and education level could go a long way towards increasing black American life spans and decreasing their rates of sickness.
The creation of the viral hashtag #BlackLivesMatter provides an opportunity to hold our government responsible for ensuring that black American life is adequately valued, no matter the age. Just as both traditional and social media have brought attention to young black life being cut short through direct violence, we should also direct our attention to the conditions leading to elderly black life being cut short indirectly. These conditions, as well as the realities faced by elderly black Americans, need to inform policymakers' decisions as they consider changes to retirement policy.
- Published on Friday, December 05, 2014
by Rick McGahey, SCEPA Faculty Fellow
This morning's release of the November employment report is one of the strongest we have seen for some time. But a closer look at the underlying numbers, especially in historic context, shows a continuing weak labor market, with the labor share still playing second fiddle to profits and corporate dominance.
Total payroll employment grew by a very robust 321,000 jobs, with gains in virtually every major sector of the economy. The "diffusion index" which measures how growth is spread across sectors was 69.7 percent (50 percent would show half of all industries gaining jobs, and half declining). And the September and October jobs numbers were revised upwards by a total of 44,000, so we now have a three-month average jobs increase of 278,000 per month.
Average hourly earnings also rose, by nine cents per hour, to $24.66, the biggest monthly increase since June 2013. In the past twelve months, hourly earnings have risen by 2.1 percent. The only lagging jobs indicator is average hours worked, which at 34.6 hours per week is essentially unchanged from a year ago.
The unemployment data, based on household surveys, is less exciting. The unemployment rate (5.8 percent), labor force participation (62.8), and employment-to-population ratio (59.2 percent) were all essentially flat. In the next few months, if job and wage growth continues, we should see improvements in all three of those ratios.
Is it time to declare victory?
- Published on Tuesday, December 02, 2014
It is a fact that the "average" American is living longer. Unfortunately, it is also a fact that white women and men have longer life expectancies at birth than black women and men. However, in 1950, the United States could claim racial equity in one important respect – should they reach age 65, both black and white men could expect to live twelve additional years to age 77.
Sixty years later, this racial equity is now a racial gap. In 2010, white men at age 65 were projected to live almost 2 years longer than black men, while white women could expect to live one year longer than black women.
SCEPA's new Policy Note, "The Racial Longevity Gap Past Age 65: Implications for Raising the Retirement Age," documents this new racial gap in post-65 life expectancy. The research warns of the potential to disportionately burden black Americans under proposals to raise the retirement age and offers policy proposals to address the income gaps that decrease life expectancy.