Posts Tagged ‘United States’

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infant mortality

According to the U.S. Centers for Disease Control and Prevention [pdf],

In 2010, the U.S. infant mortality rate was 6.1 infant deaths per 1,000 live births, and the United States ranked 26th in infant mortality among Organisation for Economic Co-operation and Devel­opment countries. After excluding births at less than 24 weeks of gestation to ensure international comparability, the U.S. infant mortality rate was 4.2, still higher than for most European countries and about twice the rates for Finland, Sweden, and Denmark.

Infant mortality is an important indicator of the health of a nation because it is associated with a variety of factors such as maternal health, quality of and access to medical care, socioeconomic conditions, and public health practices.

Clearly, as inequality continues to rise, the health of the United States is not good.

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According to Andrew Levin [pdf], the current employment gap of 3 percentage points is roughly three times the oft-cited difference between the official unemployment rate and the so-called natural rate of unemployment.

Levin defines the overall employment gap as the the deviation of actual employment from its maximum sustainable level. It is the sum of three components: (a) the unemployment gap, the deviation between actual unemployment and its longer-run normal rate; (b) the participation gap, the deviation between the actual labor force and the level that would solely reflect demographic and structural factors; and (c) the underemployment gap, the extent of involuntary part-time work (measured in full-time equivalent jobs) relative to its longer-run normal incidence.

Those who can’t find a job, have given up looking for a job, and are working a part-time job when they’d prefer to be working full-time watch with disbelief as the inflation hawks push the Fed to raise interest rates and private employers say they’re doing all they can to hire available workers.

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estimatedandideal

 

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Americans have no idea how unequal the distribution of income is. At the same time, they want a distribution of income that is much more equal than it currently is.

According to a new study by Sorapop Kiatpongsan and Michael I. Norton [pdf], where they looked at the estimated and ideal pay ratios of CEOs and unskilled workers, American respondents estimated the ratio of estimated incomes of CEOs to unskilled workers to be 29.6, whereas the actual ratio was about 354 (based on the fact that the average yearly compensation for CEOs of S&P 500 companies in 2012 was $12.3 million while the average worker received about $35,000). Their ideal pay ratio was only 7.

In other words, Americans think that CEOs should receive about 7 times what the average worker brings home, imagine that the actual ratio is much higher (by a factor of about four), while the actual ratio is far higher than either what they think it is (by a factor of twelve) and what the ideal would be (by a factor of over fifty).

As it turns out, Americans are not alone.

Using survey data from 40 countries (N = 55,238), we compare respondents’ estimates of the wages of people in different occupations – chief executive officers, cabinet ministers, and unskilled workers – to their ideals for what those wages should be. We show that ideal pay gaps between skilled and unskilled workers are significantly smaller than estimated pay gaps, and that there is consensus across countries, socioeconomic status, and political beliefs for ideal pay ratios. Moreover, data from 16 countries reveals that people dramatically underestimate actual pay inequality.

The task, of course, is to figure out how to close the enormous gap between the actual level of inequality and what people think the amount of inequality should be. We can start by giving workers more say in running the enterprises where they are employed.

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Martin Rowson 20.09.14 huck4octCOLOR