you

Losing your own business is worse than losing a salaried job

The ongoing COVID-19 pandemic, the ensuing lockdowns, and the near standstill of the global economy have led to massive unemployment in many countries around the world. Workers in the hospitality and travel sectors, as well as freelancers and those in the gig economy, have been particularly hard-hit. Undoubtedly, unemployment is often an economic catastrophe leading…

       




you

We can’t recover from a coronavirus recession without helping young workers

The recent economic upheaval caused by the COVID-19 pandemic is unmatched by anything in recent memory. Social distancing has resulted in massive layoffs and furloughs in retail, hospitality, and entertainment, and millions of the affected workers—restaurant servers, cooks, housekeepers, retail clerks, and many others—were already at the bottom of the wage spectrum. The economic catastrophe of…

       




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Johannesburg’s ambitious effort to curb 40 percent youth unemployment


There has been no shortage of news about South Africa’s recent economic and political turmoil—from its plummeting currency and slowing economy, to President Zuma’s cabinet shake-up, to weeks-long student protests over rising tuition fees in October.

Understanding what is driving political volatility requires understanding the central economic challenge facing South Africa’s major metropolitan regions: insufficient labor market opportunities for young people.

A recent Brookings report found that the unemployment rate among youth (ages 15 to 34) in Gauteng, the home province of the Johannesburg region, was nearly 40 percent, exceeding the 37 percent national rate. Young people continue to flock to Johannesburg, and the broader Gauteng City-Region that surrounds it, in search of economic opportunity. But the city-region has only created jobs at a 1.3 percent annual clip since 2000, far lower than peer regions like Shenzhen (8.2 percent), Istanbul (2.8 percent), and Santiago (2.4 percent), limiting its ability to absorb young workers. At the same time, the skills demands of the labor market have shifted as the region’s economy has transitioned from mining to more advanced services, creating a mismatch between what education and training systems are providing and what the labor market demands. This employment crisis matters for both economic competitiveness (output per worker growth, a rough measure of productivity, has stagnated since 2010) and economic justice (the unemployment rate for black South Africans is four times the rate for whites).

At a recent Global Cities Initiative event in Johannesburg local private, public, and civic leaders discussed both the immense scale of the youth unemployment challenge and an ambitious proposed solution: the youth skills empowerment initiative “Vulindlel’ eJozi” (a Zulu phrase meaning “open the way in Johannesburg”) created by the city of Johannesburg in partnership with the Harambee Youth Employment Accelerator. Of the approximately 1.6 million Johannesburg residents aged 19-34, just under half are not engaged in employment, education, or training. Vulindlel’ eJozi’s seeks to “reach 200,000 of these young people to meaningfully include and engage them in our economy over the next year.”

Vulindlel’ eJozi stands out for at least two reasons. Most glaringly is its sheer scale. Through its work with Harambee and other initiatives, the city of Johannesburg provided over 45,000 opportunities for youth to move towards employment during the first quarter of 2015. Second, the partnership leverages the resources and competencies of the private and civic sectors. Harambee has successfully trained and placed 20,000 youth in sustained formal employment with over 200 employers and ambitiously wants to engage 500,000 South African youth in their training programs. Constant employer feedback on what skills are demanded is one of the accelerator’s hallmarks, helping Harambee achieve higher trainee retention rates than industry averages.  

Youth unemployment, of course, is not a problem unique to South Africa. Recent Brookings research found that labor force participation, employment, and median earnings among American teens and young adults all declined between 2000 and 2014. How effectively the city of Johannesburg can build the institutional architecture to engage with private and NGO actors on a youth employment initiative at this scale will ultimately determine its success. These lessons could serve other cities well as they seek to deliver economic opportunity to their young people.

Authors

  • Joseph Parilla
Image Source: © Siphiwe Sibeko / Reuters
     
 
 




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How Much Did Your Vote Cost? Spending Per Voter in the 2014 Senate Races


Totaling more than $111,000,000.00, the 2014 North Carolina Senate contest between Kay Hagan and Thom Tillis is the most expensive Senate election in the nation’s history (not adjusted for inflation). As we investigated earlier this week, outside money has been flowing into American politics in the wake of the Supreme Court’s Citizens United decision in 2010.

When candidate and independent spending are combined, 2014 ranks among the most expensive, if not the most expensive, in history. However, understanding campaign spending takes more than a simple examination of total dollars. Spending differences across states can occur for a variety of reasons, including geographic size, population size, and the expense of media markets.

As a result, a more useful metric for understanding the magnitude of campaign activity is spending per voter, and 2014 offers an interesting case: Alaska. This year, Alaska saw a highly competitive Senate race in which both outside groups and candidates spend substantial amounts of money. Alaska ranks 47th in population with just over 700,000 residents and an estimated 503,000 eligible voters. After adjusting spending (both candidate and independent expenditures) for each state's estimated voting eligible population, Alaska's 2014 Senate race, unsurprisingly, ranks as the most expensive in US history.

Alaska originally ranked 6th most expensive in 2014, with about $60 million spent total. But it jumps to first place in dollars spent per voter. Candidates and outside groups spent roughly $120 per voter in Alaska this year, about double the next most-expensive race, Montana 2012, where candidates and outside groups spent $66.5 per voter. By comparison, the $111 million Senate race in North Carolina—with a voting-eligible population of about 6,826,610—equaled only $16.25 per voter. That’s still far above the median spending per race for all three cycles ($7.3 per voter) but certainly serves to put the spending in context.

Relative to 2012 and 2014, in terms of both combined and per-voter spending, 2010 could be considered one of the cheaper cycles for Senate races thus far.

These data lend some support to the observation that, since Citizens (and more recently McCutcheon v. FEC) independent expenditures are quickly outpacing contributions to candidates. But given changes in reporting requirements and limited data, there is still a lot about outside spending we still don’t know.

All in all, candidate and outside group spending totaled just over a billion dollars in Senate races in 2014. The fact that North Carolina alone accounted for more than ten percent of that spending is astonishing, but no less remarkable is the intensity of spending per voter in Alaska. But if spending continues to grow as it has the last three election cycles, both of those records will likely be shattered in 2016.

Authors

Image Source: © Matt Sullivan / Reuters
     
 
 




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Map: The Earned Income Tax Credit in Your County


     
 
 




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The Young African Leaders Initiative: Soft power, smart power


In 2010, Africa’s leaders gathered at the African Union in Addis Ababa to celebrate 50 years of independence. In Washington, President Barack Obama marked the occasion by hosting a town hall meeting of young African leaders from nearly 50 countries.

What looked at the time to be a curious way to mark a significant moment in the continent’s history was in fact the genesis of what could become the most innovative Obama initiative in Africa. 

When asked during the session by a young woman from Mali why he had convened such a meeting, Obama said that he wanted “to communicate directly to people who may not assume that the old ways of doing business in Africa are the ways that Africa has to do business.” The president added that he wanted the young leaders to meet each other, to develop a network of like-minded people working for a better future, and to reinforce each other’s goals and aspirations.

That town hall marked the launch of the Young African Leaders Initiative (YALI). Over the next two years, YALI engaged Africa’s youth, principally through events coordinated by U.S. embassies throughout the region. Then, during a speech in 2013 in South Africa, Obama announced the establishment of the Washington Fellowship. Subsequently renamed the Mandela Washington Fellowship (MWF), the program initially was designed to bring 500 young leaders to the U.S. for six weeks of executive leadership training at U.S. universities and four days in Washington to meet with each other, leaders in the administration, and to have a town hall with the president. In 2016, the program was increased to 1,000 fellows.

The fellows

When USAID put the application online for the first class of fellows in December 2013, the response was extraordinary. Nearly 50,000 applied for 500 slots. Similar numbers have applied for the two subsequent classes. Over the course of three classes of fellows, there have been 119,000 applications for 2,000 openings.

The U.S. government kept the qualifications relatively simple. Young men and women from each of sub-Saharan Africa’s 49 countries are eligible to participate, including from countries on which the U.S. has sanctions, such as Sudan, Eritrea, and Zimbabwe. Applicants generally have to be between 25 and 35, proficient in English, possess a proven record of leadership, and have a commitment to return to the continent. Fellows apply for one of three tracks: business and entrepreneurship, civic leadership, or public management.

A review of the program found that in the first cohort, the gender split was 50/50, nearly 40 percent owned a business, and a similar number ran a nonprofit organization. Eighty percent of the class had never traveled to the U.S., and more than half grew up outside capital cities.

The key element of the fellows’ program occurs during the specialized six weeks of leadership training that takes place at nearly 40 universities across the U.S. At the universities, the fellows, in cohorts of 20, are exposed not only to programs tailored specifically for their interests, but to other young Africans who share a passion for making a difference in their communities and countries. For most fellows, meeting other young Africans from different countries is one of YALI’s key benefits, as is forging genuine ties with Americans and U.S. institutions.

The narratives of the 2,000 Mandela Washington Fellows illustrate some of the most compelling stories and realities on the African continent today.

Importantly, the MWF program is cost-efficient, as the average cost of a fellow coming to the U.S. is $24,000. At least half is paid by the participating U.S. universities and a host of companies, including Coca-Cola, IBM, the MasterCard Foundation, AECOM, Microsoft, Intel, McKinsey & Company, GE, and Procter & Gamble, who have made grants or in-kind contributions to the fellowships and the YALI program.

YALI’s broader impact

YALI is having an impact on its participants. An initial assessment by IREX, USAID’s implementing partner, found that over 80 percent of male and female fellows who owned businesses reported an increase in earnings in the year following their fellowship in the U.S. Business fellows also leveraged more than $3 million in new sources of support through loans, grants, equity financing, and in-kind contributions.

Fellows who participated in the civic leadership training reported that the impact of their nonprofit organizations nearly tripled to over 1.6 million beneficiaries, with an average contact per fellow increasing from less than 3,000 to just fewer than 15,000 beneficiaries.

Over 80 percent of the fellows reported that they remained in contact with other fellows during the course of the year, and 70 percent indicated they continued to be involved with their host university. The ongoing connectivity is helped by the three regional conferences in Africa that USAID convenes for program alumni, more than 200 internships on the continent—most sponsored by corporate partners—as well as funding for fellows to attend conferences and other programs after they have returned to Africa.

As part of YALI’s broader reach, USAID created four Regional Leadership Centers (RLCs)—in South Africa, Kenya, Ghana, and Senegal—that offer distance and in-class leadership training to about 3,500 participants annually.

The YALI Network (Figure 1) was established in 2013 as a means to stay connected online to the tens of thousands of young Africans who applied for the fellowship but were not selected as well as others interested in the initiative. The network, which provides access to global leaders in relevant fields and opportunities for collaboration on a range of activities, has attracted nearly 250,000 members. Participants in the RLCs and the YALI Network can earn certificates in various courses, including climate change, women’s empowerment, and the election processs.

Figure 1.


Source: YALI Network

YALI, of course is not without its challenges. Recruiting from 49 countries can be exceedingly difficult, and the quality of Skype and telephone connectivity can vary significantly, which impacts the interview process. Due to the high volume of applicants, embassies have learned that they need more time to review applications. Extra efforts have been needed to accommodate fellows with disabilities. YALI’s biggest challenge, though, is winning the support of African leaders who generally have yet to embrace the program due to its unilateral launch.

What’s next?

YALI is a cost-efficient and effective way to invest in Africa’s future, especially as it concerns deepening trade and commerce with the region, strengthening democratic institutions and empowering civil society. If the next administration continues to invest in the program, YALI could become an enduring legacy program of the Obama administration much like the African Growth and Opportunity Act (AGOA) and the President’s Emergency Program on AIDS Relief (PEPFAR) are, respectively, for the Clinton and Bush administrations. Over time, YALI inevitably would contribute to a new generation of transformative African leadership and deeper ties between the U.S. and Africa in a way that few other programs do.

      
 
 




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Why are young, educated men working less?

The proportion of U.S. adults in paid work has declined in recent decades. While the fall in male employment gets the most attention, female work rates are declining too. A new NBER paper from Katharine Abraham and Melissa Kearney provides a comprehensive review and rigorous analysis of the overall trends, and potential contributory factors including…

       




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Decoding declines in youth employment


Interpreting employment stats among young people can be tricky. No one expects employment rates among teens or people in their early 20s to reach those of prime-age workers. These are prime years for what economists call “investing in human capital,” an activity most people would describe as “going to school.”

Education requirements for good jobs are getting higher, so finishing high school and earning a post-secondary credential like two or four-year college degrees, apprenticeships, or certifications are top priorities. But early work experiences can allow young people to learn new skills, gain experience, and expand networks. Evidence suggests that it can improve employment prospects down the line. And the earlier that people are exposed to the workplace, the earlier they learn such skills as teamwork, communication, and dependability—skills that employers say are in short supply

The employment rate for teens fell from 43 percent in 2000 to 26 percent in 2014, and for young adults aged 20 to 24, it fell from 70 to 62 percent. These are big drops. In a new analysis, I take a deeper look at employment trends among young people. When employment rates are broken out by age and race/ethnicity, you see the same downward pattern, but also substantial variation among whites, blacks, Latinos, and Asians.

Do these declines spell trouble? The answer is, it depends:  on how young people spend their time, what resources and support are available to them, and how the person making the judgement values academics and enrichment relative to employment.

Some argue that workplace experience provides key developmental opportunities that benefit all young people. Robert Halpern, for example, wryly notes that high school students are isolated from the adult world “at just the moment when [they] need to begin learning about participating in it.” 

Others say that employment matters more for some young people than others. For example, disadvantaged youth—those not on track to earn a post-secondary credential and without strong family or community  networks to help them find jobs—can particularly benefit from formal programs that connect them to the labor market. As Jeylan Mortimer concluded about “low academic promise” high school students (those with poor grades and low educational goals): “[H]aving a positive work experience can help to turn you around.  For those who have a lot of disadvantages, any positive experience is likely to have a greater impact than on people with a lot of advantages already.” Research on Career Academies, high schools that combine academics with career development, support this view. Career Academy students, disproportionately low-income, black, and Latino, posted significant earnings gains eight years after graduation, and young male graduates also had higher rates of marriage and custodial parenthood.

And some would say that it’s appropriate to prioritize education over employment, especially for teens, who are typically not responsible for supporting themselves and their families.

So what do the data tell us? Voluntarily dropping out of the labor force to concentrate on academics as a young person can pay off when people enter their prime working years, generally considered to be 25 to 54. Though education and work are not necessarily incompatible, employment rates are generally lower among students than among those not enrolled in school. Among teens and young adults, Asians have the lowest employment rates, but they also have the highest school enrollment rates. 92 percent of Asian 16- to 19-year-olds and 63 percent of Asian 20- to 24-year-olds are in school, compared to 80 percent and 38 percent among all races. It follows, then, that Asians have high levels of educational attainment. In fact, 50 percent of 23- to 24-year-old Asians have a Bachelor’s degree, double the average rate. Given the strong correlation between education and employment, it is not a coincidence that prime-age Asians have high employment rates and low unemployment rates. Their low employment rates as young people do not, on the whole, seem to lead to problems as adults. (Of course, this is not to downplay the diversity of the Asian population and to suggest that all Asians are doing well economically.)

On the other hand, blacks have the second lowest employment rates as teens and young adults, and the lowest rate as prime age workers. They also have the highest unemployment rates, showing an active desire to work. Among black teens in 2014, the unemployment rate was 38 percent, compared to 23 percent overall, and it was 22 percent among black young adults, compared to 13 percent overall. The trend continues into prime working years: blacks have an unemployment rate of 11.4 percent, nearly double the overall rate of 6.2 percent.  The low employment rate among young black people is not driven by school enrollment. Latinos have similar (below-average) enrollment levels but higher employment rates, and whites have much higher employment rates but only slightly higher enrollment levels. The weaker employment outcomes of blacks at all ages is probably related to multiple factors: relatively low levels of educational attainment, discrimination, and the neighborhood effects of living in concentrated poverty.

Blacks and Latinos are disproportionately represented among so-called “disconnected youth,” young people aged 16 to 24 who are neither working nor in school. 17 percent of black young adults aged 20 to 24 are disconnected, as are 13 percent of Latinos, 7 percent of whites, and 4 percent of Asians. Half of disconnected young adults have a high school credential and another 20 percent have taken some college courses, suggesting that getting these young people on a better path involves not only reducing the high school dropout rate, but also strengthening the transition from high school to post-secondary education and the labor market. 

In short, employment rates among young people tell different stories that often track by race and ethnicity. Some voluntarily withdraw from the labor market to focus on academics and extra-curricular activities, others would really like a job but can’t find one, and some—the most disadvantaged—are alienated from both school and the labor market.

Authors

Image Source: sruss
     
 
 




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Metropolitan Lens: Youth employment in the Washington, D.C. region


In a recent analysis, I highlighted how employment and disconnection among young people vary by age, race, and place. In this podcast, I dig deeper into the data on the Washington, D.C. region. Although the area generally performs well on employment measures, not all young people are faring equally well.

Listen to the full podcast segment here: 

Authors

Image Source: © Keith Bedford / Reuters
      
 
 




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Improving youth summer jobs programs

Event Information

July 14, 2016
10:00 AM - 12:00 PM EDT

Falk Auditorium

1775 Massachusetts Ave., NW
Washington, DC

Register for the Event



Youth summer jobs programs have experienced a resurgence of interest and investment since the Great Recession, driven by concerns about high unemployment rates among young people, particularly those who are low-income, black, or Hispanic. Recent research points to summer jobs programs as a positive lever for change by reducing violence, incarceration, and mortality and improving academic outcomes.They are often a jurisdiction’s most high-profile youth employment initiative.

But good intentions do not always lead to results. Research has not yet linked summer jobs programs to improved employment outcomes, evaluations to date are silent on effective program design, and in the absence of agreed-upon standards and best practices, there is no guarantee of quality.They are complicated and labor-intensive to operate, and many jurisdictions had to re-build their programs after a long hiatus following the end of dedicated federal funding in the late 1990s.

On Thursday, July 14, the Brookings Metropolitan Policy Program hosted an event that explored core elements associated with high-performing programs and made recommendations to strengthen summer jobs programs. The event featured a presentation on the finding of a new paper by Brookings fellow Martha Ross and co-author Richard Kazis, titled, “Youth Summer Jobs Programs: Aligning Ends and Means,” followed by a response panel, comprised of leaders from metro areas across the country.  

Join the conversation on Twitter at #SummerJobs


Presentation by Martha Ross


Photo


From left to right: Richard Kazis, Nonresident Fellow, The Brookings Institution; Kerry Sullivan, President, Bank of America Charitable Foundation; Honorable Michael A. Nutter, Former Mayor, City of Philadelphia;  Ana Galeas, Summer Camp Counselor, DC Scores, and Participant, Mayor Marion S. Barry Summer Youth Employment Program; Michael Gritton, Executive Directlor, KentuckianaWorks


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Youth summer jobs programs: Aligning ends and means


Summer jobs programs for young people have experienced a resurgence of interest and investment since the Great Recession, driven by concerns about high youth unemployment rates, particularly among low-income, black, and Hispanic youth. 

Summer jobs programs typically last five to seven weeks and provide work opportunities to teens and young adults who otherwise might struggle to find jobs. They offer a paycheck, employment experiences, and other organized activities in the service of multiple goals: increasing participants’ income, developing young people’s skills and networks to improve their labor market prospects, and offering constructive activities to promote positive behavior. Most young people are placed in subsidized positions in the public and nonprofit sectors, although most cities also secure unsubsidized and private-sector placements, which typically come with higher skill and work-readiness requirements. Recent research finds that summer jobs programs have positive effects: reducing violence, incarceration, and mortality and improving academic outcomes.

But a strong program does not automatically follow from good intentions. Program design and implementation carry the day and determine the results. Moreover, research has not yet linked summer jobs programs to improved employment outcomes; evaluations to date are silent on effective program design; and, in the absence of agreed-upon standards and best practices, there is no guarantee of quality.

This paper is written to help clarify what is known about summer jobs programs and to provide information and guidance to city leaders, policymakers, and funders as they consider supporting larger and better summer efforts. Many jurisdictions are rebuilding their summer programs after a long hiatus that followed the end of dedicated federal funding in the late 1990s. Summer jobs programs are complex endeavors to design and deliver. Local leaders and administrators make a multitude of choices about program design, implementation, and funding, and these choices have a direct impact on quality and results. It is an opportune moment to assess the knowledge base and gaps about the operations and impacts of summer jobs programs.

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Figure of the week: Annual Nelson Mandela lecture focuses on the potential of Africa’s youth


On Monday, July 18, 2016, the world celebrated Nelson Mandela International Day, a day recognizing the former president of South Africa’s commitment to fostering peace and freedom. Every year the Nelson Mandela Foundation hosts a lecture, inviting prominent individuals to discuss significant social issues affecting the African continent. For this year’s lecture, Bill Gates was selected to speak on the theme of “Living Together” in front of a packed stadium in Pretoria. Gates focused on a topic Mandela returned to repeatedly throughout his life—the power of the youth. In the words of Gates, “…young people are better than old at driving innovation because they are not locked in by the limits of the past… we must clear away the obstacles standing in young people’s way so that they can seize all of their potential.”

Unfortunately, South Africa, the second-largest economy on the continent, has the highest youth unemployment rate at 54 percent, as seen in the figure below. Surprisingly, according to the figure the highest rates of youth unemployment lie in the upper-middle-income countries as classified by GNI per capita. Additionally, these unemployment rates might be depressed due to the fact that unemployment refers to people looking for jobs, and many of Africa’s youth are forced into the informal sector after giving up on their search for employment.

Although youth unemployment in Africa is often seen as a growing challenge, a number of experts interpret the large youth population as an opportunity, as long as the youth have access to the economic opportunities through which they can channel their energy into progress. As Africa’s youth is predicted to grow exponentially, achieving broad-based economic growth and development will rely on breaking down the barriers to economic opportunity, by investing in human capital (through education) and in improving business environments. 

Figure 2.3. Youth unemployment will continue to be a growing challenge in 2016

Interestingly, GDP and income classification have little correlation with youth unemployment rates. For example, South Africa, which has the second-largest economy on the continent and is considered an upper-middle-income country based on its GNI per capita, has the highest youth unemployment rate at nearly 54 percent. Meanwhile, the Liberian economy, which is nearly 200 times smaller than South Africa’s, has a youth unemployment rate 10 times smaller. Youth unemployment is measured as the share of the labor force (ages 15-24) without work but available for and seeking employment. Estimates may be low in some low-income countries like Liberia because many young people cannot afford not to work to seek employment and as a result, end up in low-paying jobs.

Source: Youth unemployment figures from World Development Indicators and GDP data from the World Bank databank.

See the Brookings Africa Growth Initiative’s Foresight Africa 2016 report, from which the figure below comes, for more highlights on the growing challenge of youth unemployment in Africa. In addition, earlier this month the Brookings Institution hosted an Africa Policy Dialogue on the Hill on jobs in Africa, alluding to the shortcomings of the educational systems and the importance of infrastructure and electricity to support business and attract investment. For a summary of the conversation, see here.

Tor Syvrud contributed to this post.

Authors

  • Amy Copley
      
 
 




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The case for universal voting: What's your opinion?


In a new research paper—The case for universal voting: Why making voting a duty would enhance our elections and improve our government—Brookings scholars E.J. Dionne, Jr. and William Galston make the case for universal voting—an electoral system in which voting would be regarded as a required, civic duty. Why not treat showing up at the polls in the same way we treat, say, a jury summons? Dionne and Galston argue that universal voting’s benefits would include enhancing the legitimacy of our governing institutions, increasing turnout and the diversity of the American voter base, and easing the intense partisan polarization that weakens our governing capacity.

What do you think of Dionne and Galston’s proposal? Specifically, if voting and registration rules were made easier, should voting in national elections be universal and mandatory for all eligible citizens?

To voice your opinion, click the image below and vote. We will share the results on social media.

Authors

Image Source: © Kevin Lamarque / Reuters
      
 
 




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Losing your own business is worse than losing a salaried job

The ongoing COVID-19 pandemic, the ensuing lockdowns, and the near standstill of the global economy have led to massive unemployment in many countries around the world. Workers in the hospitality and travel sectors, as well as freelancers and those in the gig economy, have been particularly hard-hit. Undoubtedly, unemployment is often an economic catastrophe leading…

       




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Are you happy or sad? How wearing face masks can impact children’s ability to read emotions

While COVID-19 is invisible to the eye, one very visible sign of the epidemic is people wearing face masks in public. After weeks of conflicting government guidelines on wearing masks, the Centers for Disease Control and Prevention (CDC) recommended that people wear nonsurgical cloth face coverings when entering public spaces such as supermarkets and public…

       




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Education may be pivotal in the 2020 election. Here’s what you need to know.

As 2019 winds down, all eyes will soon turn to the 2020 U.S. presidential election. The cycle promises to dominate the news throughout next year, covering everything from the ongoing impeachment proceedings to health-care reform and more. While education traditionally may not be considered a top-tier issue in national elections, as Brookings’s Doug Harris has…

       




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No matter which way you look at it, tech jobs are still concentrating in just a few cities

In December, Brookings Metro and Robert Atkinson of the Information Technology & Innovation Foundation released a report noting that 90% of the nation's innovation sector employment growth in the last 15 years was generated in just five major coastal cities: Seattle, Boston, San Francisco, San Diego, and San Jose, Calif. This finding sparked appropriate consternation,…

       




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We can’t recover from a coronavirus recession without helping young workers

The recent economic upheaval caused by the COVID-19 pandemic is unmatched by anything in recent memory. Social distancing has resulted in massive layoffs and furloughs in retail, hospitality, and entertainment, and millions of the affected workers—restaurant servers, cooks, housekeepers, retail clerks, and many others—were already at the bottom of the wage spectrum. The economic catastrophe of…

       




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Reforming the Federal Hiring Process and Promoting Public Service to America’s Youth

In the coming years, the federal government will need to hire more than 200,000 highly skilled workers for a range of critical jobs. In order to fill this hiring gap, young people, who have the right skills and background must be drawn into public service. The government is attracting many outstanding candidates, but the recruitment…

       




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Educated but unemployed: The challenge facing Egypt’s youth


Millions of Egyptians took to the streets in January 2011 chanting “‘ish, hurriyya, ‘adalah ijtima‘iyya,” or bread, freedom, and social justice. This simple chant captured protestors’ desire for a new Egypt defined by economic, political, and social change. Five years later, however, the attainment of those demands seems more elusive than ever. In the economic sphere, Egypt still faces the major challenge of high unemployment, particularly among educated youth. Why do so many of Egypt’s young university graduates struggle to find employment?

Read "Educated but unemployed: The challenge facing Egypt’s youth"

In this policy briefing, Adel Abdel Ghafar analyzes the roots of Egypt’s youth unemployment crisis, starting with the structural issues plaguing the country’s educational system. He then examines other contributing factors including neoliberal economic reforms, gender inequality, and the lack of entrepreneurship. Abdel Ghafar warns that failing to address the unemployment issue will increase the likelihood of another uprising.

Abdel Ghafar thus argues that the Egyptian government must urgently undertake reforms and devote extensive resources to dealing with youth unemployment. Specifically, he recommends ways in which Egypt can revamp public university funding, promote vocational training, stimulate entrepreneurship, and increase the participation of women in the workforce.

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Publication: The Brookings Doha Center
Image Source: © Amr Dalsh / Reuters
      
 
 




you

Losing your own business is worse than losing a salaried job

The ongoing COVID-19 pandemic, the ensuing lockdowns, and the near standstill of the global economy have led to massive unemployment in many countries around the world. Workers in the hospitality and travel sectors, as well as freelancers and those in the gig economy, have been particularly hard-hit. Undoubtedly, unemployment is often an economic catastrophe leading…

       




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Webinar: Becoming Kim Jong Un — A former CIA officer’s insights into North Korea’s enigmatic young dictator

When it became clear in 2009 that Kim Jong Un was being groomed to be the leader of North Korea, Jung Pak was a new analyst at the Central Intelligence Agency. Her job was to analyze this then little-known young man who would take over a nuclear-armed country and keep the highest levels of the…

       




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"Should we live together first?" Yes, say Democrats. No, say Republicans (even young ones)


There is a marriage gap in America. This is not just a gap in choices and actions, but in norms and attitudes. Each generation is more liberal, on average, when it comes to issues like premarital relationships, same-sex marriage, and divorce. But generational averages can obscure other divides, including ideology—which in many cases is a more powerful factor.

Take opinions on the most important prerequisites for marriage, as explored in the American Family Survey conducted earlier this year by Deseret News and the Center for the Study of Elections and Democracy (disclosure: I am an adviser to the pollsters). There is widespread agreement that it is best to have a stable job and to have completed college before tying the knot. But there is less agreement in the 3,000-person survey on other questions, including premarital cohabitation.

Living in sin, or preparing for commitment?

In response to the question of whether it is “important to live with your future spouse before getting married,” a clear gap emerges between those who identify as Democrats and those who identify as Republicans. This gap trumps the generational one, with younger Republicans (under 40) more conservative than Democrats over the age of 40:

The importance of family stability for a child’s wellbeing and prospects is well-documented, not least in Isabel Sawhill’s book, Generation Unbound. The question is not whether stability matters, but how best to promote it. To the extent that biological parents stay together and provide a stable environment, it doesn’t much matter if they are married. For children living with both biological parents, there is no difference in outcomes between those being raised by a married couple compared to a cohabiting couple, according to research by Wendy Manning at Bowling Green State University.

But people who marry are much more likely to stay together:

Marriage, at least in America, does seem to act as an important commitment device, a “co-parenting” contract for the modern world, as I’ve argued in an essay for The Atlantic, “How to Save Marriage in America.”

The varied meaning of “cohabitation”

Cohabitation can signal radically different situations. A couple who plan to live together for a couple of years, then marry, and then plan the timing of having children are very different from a couple who start living together, accidentally get pregnant, and then, perhaps somewhat reluctantly, get married.

There is some evidence that cohabitation is in fact becoming a more common bridge to marriage and commitment. First-time premarital cohabiting relationships are also lasting longer on average and increasingly turn into marriage: around seven in ten cohabiting couples are still together after three years, of whom four have married.

In the end what matters is planning, stability, and commitment. If cohabitation is a planned prelude to what some scholars have labeled “decisive marriages,” it seems likely to prove a helpful shift in social norms, by allowing couples to test life under the same roof before making a longer-term commitment. Sawhill’s distinction between “drifters” and “planners” in terms of pregnancy may also be useful when it comes to thinking about cohabitation, too.

Authors

Image Source: © Brendan McDermid / Reuters
     
 
 




you

A reading list from Brookings Foreign Policy while you practice social distancing

As the coronavirus outbreak keeps many of us confined to our homes, now may be a unique opportunity to tackle some long-form reading. Here, people from across the Brookings Foreign Policy program offer their recommendations for books to enrich your understanding of the world outside your window. Madiha Afzal recommends Boko Haram: The History of…

       




you

Urban youth unemployment: A looming crisis?

Unemployment is a growing challenge around the world, though it is not a full-blown crisis yet. However, when the crisis comes, it is likely to erupt among urban youth. While heading off such a calamity will not be easy, the global benefits of doing so would be great. As productive and socially responsible adults, the…

       




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U.N. International Year of Volunteers Ignites Colombia’s Youth to Volunteer


Last October, 200 students from Colombia's Servicio Nacional de Aprendizaje (SENA) worked the floor of the campus coliseum at Universidad del Norte in Barranquilla. They were among 900 youth volunteer leaders from nearly 40 nations who had traveled the globe to join the second World Summit for Youth Volunteering, convened by Partners of the Americas and the International Association for Volunteer Effort (IAVE) on the 10th anniversary of the United Nations International Year of Volunteers.

As a developing country, Colombia’s increased civil society participation through volunteering is focused on extending poverty-reduction efforts to levels that the government cannot achieve on its own. Volunteers represent a powerful demographic for a new "service generation" by providing a dual benefit. First, volunteering provides critical services in areas such as education and asset development, which are needed to reduce extreme poverty; second, it connects a new generation with like-minded individuals across the world, which provides young people the professional and leadership skills needed to further access to employment opportunities including entrepreneurship.

For SENA, one of the world's largest educational institutions with more than four million students across Colombia, the opportunity was clear: engage talented and often under resourced youth in Colombia — one of the most economically unequal countries in the world– with innovative global volunteer leaders. According to research from Brookings and the Center for Social Development at Washington University, these types of global volunteering connections have the potential to enhance skills development while increasing social capital networks.

Extreme poverty, along with armed conflict, is one of the highest priorities of the Colombian government. Coincidentally, during the same week as the World Summit, the Colombian armed forces eliminated the Revolutionary Armed Forces of Colombia (FARC) leader Alfonso Cano while President Santos created a new national superagency to combat extreme poverty. The strategic focus on poverty reduction includes a strong role for civil society as a partner with the government in meeting the U.N. Millennium Development Goals and other development commitments. Civil society plays an essential role in overcoming internal conflict. And the youth services generation is among some of the most effective in civil society in working to help their country tackle poverty.

Colombia is certainly not the only country where youth have taken the lead through service to combat poverty. Attendees at the summit heard from Australian humanitarian Hugh Evans, who at 14 began his work to create the Global Poverty Project. In 2006, Evans became one of the pivotal leaders behind the successful Make Poverty History campaign, leading a team across Australia to lobby the country’s government to increase its foreign aid commitment to 0.7 percent of gross national income.

Whether or not SENA’s youth will be able to capitalize on their new connections with global service leaders to combat extreme poverty in Colombia is left to be seen. But the SENA volunteers and their international counterparts are more motivated to do so after gaining access to resources and social capital networks with other inspiring young leaders. That is a cause for celebration as the United Nations releases its State of the World Volunteering report in New York in December at a special session of the U.N. General Assembly.

Authors

Image Source: © Fredy Builes / Reuters
      
 
 




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African Youth Tribute Nelson Mandela through Civic Action for Development


As the world pays its tributes to the critically ailing former South African President Nelson Mandela, youth across Africa are stepping up their own tributes to Madiba in the form of civic service on Mandela Day. The United Nations and the African Union have called on citizens across Africa and the world to volunteer 67 minutes— representing the 67 years of Mandela’s public service—to community projects on his birthday, July 18.

The Africa Peace Service Corps (APSC) has launched volunteering projects in Nairobi, Kenya; Cape Town and rural Limpopo, South Africa; Lusaka, Zambia; Abuja, Nigeria; villages in Uganda and other countries.  Four hundred youths and 35 partners assembled last July at the United Nations conference in Nairobi to launch the Pan-African service project, spurring civic action in health, climate change, youth entrepreneurship and positive peace. 

A 2012 Brookings report, “Volunteering and Civic Service in Three African Regions,” released at the Nairobi conference and co-authored by three African scholars notes the benefits of volunteering (“Ubuntu”) in South, West and East Africa in addressing youth livelihoods, health and peace-building.  The report further documents policy recommendations and strategies linking youth service and entrepreneurship in addressing the daunting task of youth unemployment across the region.  Dr. Manu Chandaria  (Comcraft CEO and Global Peace Foundation Africa chairman) and Les Baillie (chairman of Kenya mobile phone giant Safaricom Foundation, which created Africa’s M-Pesa mobile banking microfinance success) have assembled corporate leaders to back APSC youth social enterprises in tree planting and waste management to generate green jobs and reach Kenya’s goal of ten percent tree coverage.

Nelson Mandela’s life of struggle and triumph, in particular his time and insights during his time unjustly incarcerated on Robben Island, provides a rich textbook for these young social entrepreneurs.  During my recent Harris Wofford Global Service Fellowship with the University of Cape Town Development Policy Research Unit (DPRU) and Cross Cultural Solutions, while teaching an entrepreneurship class in the townships I was able to see the teeming spirit of youth enterprise first-hand alive in the poorest communities.  A South African national assets demonstration has been launched this year to tap the power of service and entrepreneurship in generating savings among township youths from these deliberations with the Nelson Mandela Children’s Fund, Ford Foundation, University of Johannesburg Center for Social Development and Washington University Center for Social Development and Brookings’ Africa Growth Initiative partner DPRU, among others.

Along with addressing Mandela’s dream of ending poverty, a recent Brookings report, “Impacts of Malaria Interventions and their Potential Additional Humanitarian Benefits in Sub-Saharan Africa,” outlines the potential significant peace-building effects of service in sub-Saharan Africa by highlighting the joint efforts of the Muslim Sultan and Catholic Cardinal of Nigeria in tackling malaria along with those of the Africa Malaria Leaders Alliance with PEPFAR support.  The contributions of volunteering to both peace and development outcomes are further underscored in the draft of a United Nations post-2015 “sustainable development goals” report.

Amidst inevitable political debates over the Mandela legacy, his generous spirit and legacy of reconciliation rises high above Cape Town’s Table Mountain and across the Pan-African youth landscape.  The challenge of applying his vision and spiritual values in addressing poverty through emerging demonstrations of youth service, assets and entrepreneurship will test the commitment of Africa’s next generation of young freedom pioneers, guided by this humble giant’s profound legacy now spanning the globe.

Image Source: © Dylan Martinez / Reuters
      
 
 




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Youth and Civil Society Action on Sustainable Development Goals: New Multi-Stakeholder Framework Advanced at UN Asia-Pacific Hosted Forum


In late October at the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) headquarters in Bangkok, a multi-stakeholder coalition was launched to promote the role of youth and civil society in advancing post-2015 United Nations Sustainable Development Goals (SDGs). The youth initiatives, fostering regional integration and youth service impact in the Association of Southeast Asian Nations (ASEAN) and counterpart regions of Northeast and South Asia, will be furthered through a new Asia-Pacific Peace Service Alliance. The alliance is comprised of youth leaders, foundations, civil society entities, multilateral partners and U.N. agencies. Together, their initiatives illustrate the potential of youth and multi-stakeholder coalitions to scale impacts to meet SDG development targets through youth service and social media campaigns, and partnerships with multilateral agencies, nongovernmental organizations, corporations and research institutes.

The “Asia-Pacific Forum on Youth Volunteerism to Promote Participation in Development and Peace” at UN ESCAP featured a new joint partnership of the U.S. Peace Corps and the Korea International Cooperation Agency (KOICA) as well as USAID support for the ASEAN Youth Volunteering Program. With key leadership from ASEAN youth entitles, sponsor FK Norway, Youth Corps Singapore and Peace Corps’ innovative program in Thailand, the forum also furthered President Obama’s goal of Americans serving “side by side” with other nations’ volunteers. The multi-stakeholder Asia-Pacific alliance will be powered by creative youth action and a broad array of private and public partners from Thailand, Malaysia, Myanmar, Indonesia, Singapore, the Philippines, Australia, Korea, China, Mongolia, Japan, India, Nepal, Pakistan, the U.S. and other nations.

During the event, Dr. Shamshad Akhtar, ESCAP executive secretary, pointed out that “tapping youth potential is critical to shape our shared destiny, as they are a source of new ideas, talent and inspiration. For ESCAP and the United Nations, a dynamic youth agenda is vital to ensure the success of post-2015 sustainable development.”

Dr. Surin Pitsuwan, former ASEAN secretary-general, called for a new Asia-wide multilateralism engaging youth and civil society.  In his remarks, he drew from his experience in mobilizing Asian relief and recovery efforts after Cyclone Nargis devastated the delta region of Myanmar in May 2008. Surin, honorary Alliance chairman and this year’s recipient of the Harris Wofford Global Citizenship Award, also noted the necessity of a “spiritual evolution” to a common sense of well-being to redress the “present course of possible extinction” caused by global conflicts and climate challenges. He summoned Asia-Pacific youth, representing 60 percent of the world’s young population, to “be the change you want to see” and to “commit our youth to a useful cause for humanity.”

The potential for similar upscaled service efforts in Africa, weaving regional integration and youth volunteering impact, has been assessed in Brookings research and policy recommendations being implemented in the Common Market of Eastern and Southern Africa (COMESA). Recommendations, many of which COMESA and ASEAN are undertaking, include enabling youth entrepreneurship and service contributions to livelihoods in regional economic integration schemes, and commissioning third-party support for impact evidence research.

A good example of successful voluntary service contributions from which regional economic communities like ASEAN can learn a lot is the current Omnimed pilot research intervention in Uganda. In eastern Ugandan villages, 1,200 village health workers supported by volunteer medical doctors, Uganda’s Health Ministry, Peace Corps volunteers and Global Peace Women are addressing lifesaving maternal and child health outcomes furthering UNICEF’s campaign on “integrated health” addressing malaria, diarrheal disease and indoor cooking pollution. The effort has included construction of 15 secure water sources and 1,200 clean cook stoves along with randomized controlled trials.

Last week, the young leaders from more than 40 nations produced a “Bangkok Statement” outlining their policy guidance and practical steps to guide volunteering work plans for the new Asia-Pacific alliance. Youth service initiatives undertaken in “collective impact” clusters will focus on the environment (including clean water and solar villages), health service, entrepreneurship, youth roles in disaster preparedness and positive peace. The forum was co-convened by ESCAP, UNESCO, the Global Peace Foundation and the Global Young Leaders Academy.

      
 
 




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Where Do You Stand in the Global Love Ranking?


Paris and Rome may be famous for romance, but it’s Filipinos who get the most love. That, at least, is a conclusion that can be drawn from a global love survey conducted by the Gallup Organization.

In our latest column for Bloomberg View, we mine the unique Gallup data for insights into the nature of love and its relationship to nationality, age, money and economic development. The survey, conducted in 136 countries, posed the question: “Did you experience love for a lot of the day yesterday?”

In honor of Valentine’s Day, we thought readers might be interested in seeing the full ranking. So here goes. The first number after each country name is the percentage of respondents who said they had experienced love the previous day. The second (in parentheses) is the sample size for the country.

  1. Philippines 93% (2193)
  2. Rwanda 92% (1495)
  3. Puerto Rico 90% (495)
  4. Hungary 89% (1002)
  5. Cyprus 88% (988)
  6. Trinidad and Tobago 88% (506)
  7. Paraguay 87% (1986)
  8. Lebanon 86% (970)
  9. Costa Rica 85% (1985)
  10. Cambodia 85% (1961)
  11. Nigeria 84% (1965)
  12. Guyana 83% (486)
  13. Spain 83% (998)
  14. Mexico 82% (989)
  15. Tanzania 82% (1941)
  16. Ecuador 82% (2126)
  17. Jamaica 82% (534)
  18. Venezuela 82% (997)
  19. Cuba 82% (978)
  20. Brazil 82% (1038)
  21. Laos 81% (1947)
  22. Argentina 81% (1985)
  23. Belgium 81% (1015)
  24. Canada 81% (1006)
  25. Greece 81% (996)
  26. U.S. 81% (1224)
  27. Denmark 80% (1003)
  28. Portugal 80% (995)
  29. Netherlands 80% (993)
  30. Vietnam 79% (1901)
  31. New Zealand 79% (1775)
  32. Italy 79% (1000)
  33. Colombia 79% (1994)
  34. Madagascar 78% (998)
  35. Uruguay 78% (1969)
  36. Turkey 78% (985)
  37. Dominican Republic 78% (1976)
  38. United Arab Emirates 77% (961)
  39. Saudi Arabia 77% (978)
  40. Chile 76% (1982)
  41. Malawi 76% (1997)
  42. Ghana 76% (1986)
  43. South Africa 76% (1968)
  44. Australia 76% (1199)
  45. Panama 75% (1995)
  46. Zambia 74% (1971)
  47. Kenya 74% (1965)
  48. Namibia 74% (996)
  49. Nicaragua 74% (1988)
  50. Germany 74% (1214)
  51. Ireland 74% (992)
  52. Sweden 74% (993)
  53. U.K. 74% (1200)
  54. Switzerland 74% (986)
  55. Montenegro 74% (800)
  56. Austria 73% (984)
  57. France 73% (1217)
  58. Kuwait 73% (934)
  59. Finland 73% (993)
  60. El Salvador 73% (2000)
  61. Pakistan 73% (2253)
  62. Zimbabwe 72% (1989)
  63. Honduras 72% (1947)
  64. Peru 72% (1982)
  65. Egypt 72% (1024)
  66. Serbia 72% (1474)
  67. Bosnia and Herzegovina 72% (1896)
  68. Sierra Leone 71% (1986)
  69. India 71% (3140)
  70. Taiwan 71% (984)
  71. Bangladesh 70% (2200)
  72. Belize 70% (464)
  73. Croatia 69% (958)
  74. Macedonia 69% (1000)
  75. Mozambique 69% (996)
  76. Bolivia 69% (1948)
  77. Liberia 68% (988)
  78. Iran 68% (963)
  79. China 68% (7206)
  80. Slovenia 68% (1000)
  81. Haiti 68% (471)
  82. Norway 67% (992)
  83. Sri Lanka 67% (1974)
  84. Poland 67% (939)
  85. Guatemala 67% (1988)
  86. Uganda 66% (1961)
  87. Sudan 66% (971)
  88. Israel 66% (957)
  89. Kosovo 65% (983)
  90. Thailand 65% (2377)
  91. Jordan 65% (998)
  92. Albania 64% (855)
  93. Guinea 62% (952)
  94. Botswana 62% (999)
  95. Angola 62% (957)
  96. Burkina Faso 62% (1876)
  97. Malaysia 61% (2115)
  98. Mali 61% (984)
  99. Niger 61% (1925)
  100. Palestinian Territories 61% (991)
  101. Romania 61% (937)
  102. Senegal 61% (1805)
  103. Indonesia 61% (2013)
  104. Afghanistan 60% (1128)
  105. Hong Kong 60% (789)
  106. Cameroon 59% (1967)
  107. Japan 59% (1138)
  108. Nepal 59% (1965)
  109. Bulgaria 59% (927)
  110. Slovakia 58% (991)
  111. Singapore 58% (3002)
  112. Czech Republic 58% (992)
  113. Mauritania 57% (1960)
  114. Benin 56% (974)
  115. South Korea 56% (2056)
  116. Myanmar 55% (1047)
  117. Latvia 54% (1942)
  118. Togo 54% (988)
  119. Estonia 53% (1800)
  120. Lithuania 50% (1863)
  121. Russia 50% (4667)
  122. Chad 49% (1915)
  123. Yemen 48% (959)
  124. Ukraine 48% (1930)
  125. Ethiopia 48% (1913)
  126. Azerbaijan 47% (1824)
  127. Tajikistan 47% (1847)
  128. Moldova 46% (1937)
  129. Kazakhstan 45% (1871)
  130. Morocco 43% (1011)
  131. Belarus 43% (1992)
  132. Georgia 43% (1904)
  133. Kyrgyzstan 34% (1969)
  134. Mongolia 32% (928)
  135. Uzbekistan 32% (962)
  136. Armenia 29% (1954)

Note: This content was first published on Bloomberg View on February 13, 2013.

Publication: Bloomberg
Image Source: © Eduard Korniyenko / Reuters
     
 
 




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You Can Never Have Too Much Money, New Research Shows

      
 
 




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A reading list from Brookings Foreign Policy while you practice social distancing

As the coronavirus outbreak keeps many of us confined to our homes, now may be a unique opportunity to tackle some long-form reading. Here, people from across the Brookings Foreign Policy program offer their recommendations for books to enrich your understanding of the world outside your window. Madiha Afzal recommends Boko Haram: The History of…

       




you

You’re graduating in a pandemic. What’s next?

Graduation is always an anxious time for young people on the threshold of the “real world,” but COVID-19 has created new uncertainties. For Generation Z, students’ final semesters are not exactly going as planned. Rather than celebrating with friends, many are worrying about finding a job while living in their childhood bedrooms. In recent years,…

       




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We can’t recover from a coronavirus recession without helping young workers

The recent economic upheaval caused by the COVID-19 pandemic is unmatched by anything in recent memory. Social distancing has resulted in massive layoffs and furloughs in retail, hospitality, and entertainment, and millions of the affected workers—restaurant servers, cooks, housekeepers, retail clerks, and many others—were already at the bottom of the wage spectrum. The economic catastrophe of…

       




you

The Impact of Increases in Pell Grant Awards on College-going among Lower Income Youth

SUMMARY During the 2006-2007 academic year, grants accounted for $52 billion, roughly half of the student aid received by undergraduate college students. The largest grant program—the federal Pell program—provided $13 billion in grants, primarily to lower-income students. Although grant programs provide significant support to students, their impacts have been disappointing— substantial inequalities in college-going and…

       




you

Social Entrepreneurship in the Middle East: Advancing Youth Innovation and Development through Better Policies

On April 28, the Middle East Youth Initiative and Silatech discussed a new report titled “Social Entrepreneurship in the Middle East: Toward Sustainable Development for the Next Generation.” The report is the first in-depth study of its kind addressing the state of social entrepreneurship and social investment in the Middle East and its potential for the…

       




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So you think you have an innovation district?


Less than two years ago, the Brookings Institution unveiled the research paper, “The Rise of Innovation Districts,” which identified an emerging spatial pattern in today’s innovation economy. Marked by a heightened clustering of anchor institutions, companies, and start-ups, innovation districts are emerging in central cities throughout the world.

A Google search of the term “innovation district” reveals over 200,000 results, indicating the extent to which the phrase has permeated the fields of urban economic development, planning, and placemaking. The term is used to refer to areas, often in the downtowns of cities, where R&D-laden universities or firms are surrounded by a growing mix of start-ups and spin-offs. The term is also increasingly applied to densely populated urban neighborhoods where firms like Google are establishing campuses. But it also pops up to describe new office complexes whose amenities include a few stores or a fashionable coffee shop.

The variation in understanding of the term and its application suggests the need for a routinized way to measure the essential quantitative and qualitative assets of innovation districts. Given this, for the past nine months the Brookings Institution, Project for Public Spaces (PPS), and Mass Economics have collaborated to devise and test an audit tool for assessing innovation districts.

What to count? Considerations in designing an audit

Innovation ecosystems comprise complex, overlapping relationships between firms, individuals, unique spaces, private real estate, public infrastructure, capital, expertise, and conviviality, congregated in a roughly delineated area. To begin to determine how to identify and measure assets, we developed a process that was both rigorous and reflective, drawing together some of the brightest minds in the field, top practitioners on the ground, and a team strong in quantitative analysis.

First, we conducted research across numerous relevant topics including entrepreneurship, real estate development, commercialization, economic geography, city planning, institutional culture, finance, and inclusive development. This exercise generated hundreds of potentially applicable measures for the audit.  

Innovation districts, like in Philadelphia, benefit from the clustering of innovation assets in a dense urban geography that attracts workers, firms, and investment; enables resource-sharing and collaboration; and encourages informal social interactions.

Next, we considered which specific inputs—such as the density of innovation-oriented spaces, the density of talent, and the concentration of quality places—should be bundled and assessed cumulatively. We then tested our theories with experts—both disciplinary specialists and those working between disciplines.

Our research led us to develop several guidelines for the audit, which contribute to its value as an assessment tool:

  • An audit should analyze district data against city and regional data. An innovation district rich in growing and emerging clusters of related industries, new firms, and buzzing social networks is only a partial picture of broader economic agglomeration. Because economic clusters and talent pools tend to form at the regional scale, it is important to identify the relationship between a district and the larger metropolitan area. This enables us to discern, for example, whether the strength of the district talent pool is a local phenomenon or part of a broader city or regional trend. Understanding this fuller picture helps in designing strategies to strengthen a district’s ecosystem. A district that is not currently aligned with the sectors driving the broader metropolitan economy nevertheless has the potential to become a research and entrepreneurial hub for leading companies and clusters. The Detroit Innovation District initially grew with minimal relationship to the automotive cluster, but the addition of the American Lightweight Materials Manufacturing Innovation Institute now links the district to the city’s legacy industry. 
  • An audit should include comparisons across innovation districts. While the scope of the audit measures the performance of individual districts, it is important to be able to benchmark performance against other districts. In broad strokes, innovation districts possess similar research strengths and economic clusters and, although not all data can be analyzed across districts, identifying data that are both useful and comparable across a range of districts will be an important part of the audit design. 
  • An audit should use qualitative data to identify important factors such as culture. While quantitative data are essential for understanding much of the innovation district machinery, some assets, processes, and relationships simply cannot be quantified. Interviews with stakeholders from universities, incubators, nonprofit organizations, the start-up community, and the public sector are important for identifying particular challenges or flagging opportunities that raw numbers won’t surface. Interviews can also uncover important intelligence about the strength of relationships between institutions and other actors, how well institutional policies and programs are working to help achieve their stated goals, and the extent to which the district culture is supportive, collaborative, and risk taking.
Using these guidelines, we set out to define an audit framework, including the identification of research questions that test specific theories of change.

The audit framework

The first step in developing the audit tool was to better understand what important, measurable elements add up to an innovation ecosystem. With the help of extensive research and the input of experts across numerous fields, we identified five cross-cutting characteristics that likely contribute to an innovation ecosystem: critical mass, competitive advantage, quality of place, diversity and inclusion, and culture and collaboration.

Described below are the key questions and examples of measures for each element:

Critical mass: Does the area under study have a density of assets that collectively begin to attract and retain people, stimulate a range of activities, and increase financing?

Through our research, we determined that several types of data can help answer this question. This includes identifying the concentration of specific innovation assets, such as anchor institutions, co-working spaces, and accelerators, as well as the level or concentration of research dollars. With respect to place assets, the audit looks at the general concentration of place assets and the ratio of built to un-built space. Another important input is employment and population density, comparing these figures to the broader city and region. Lastly, the audit includes data on human capital to determine the concentration of talent.

Future development of this part of the audit may include overall square footages of specific development types. Conversations with real estate investment companies, whose ambitions include growing ecosystems around universities, have revealed that minimum thresholds of research, office, retail, and educational facilities are needed to support an innovation ecosystem.

An important piece of assessing a district’s critical mass involves the density of talent in the district.

Competitive advantage: Is the innovation district leveraging and aligning its distinctive assets, including historic strengths, to grow firms and jobs in the district, city, and region?

The audit incorporates the traditional exercise for understanding competitive advantage that identifies an area’s industry-cluster strengths, both generally and along the innovation continuum. In addition, it measures the number of publications, the rating of academic programs, and the number of research awards. To further assess the degree to which research assets are being translated into products, services, and companies, the audit gathers data on commercialization, tech transfer practices, and models of research entrepreneurship. An interesting part of the audit involves assessing the alignment between research strengths and industry clusters. This examination is important because the district can identify opportunities where research strengths are not aligned with employment. Lastly, from the perspective of place, the audit measures whether the built environment reflects cluster strengths. For example, do building façades help heighten the visibility and overall culture of innovation activities across the district?

Quality of place: Does the innovation district have a strong quality of place and offer quality experiences that attract other assets, accelerate outcomes, and increase interactions?

This analysis starts with PPS’s four qualities of great places: uses and activities, access and linkages, comfort and image, and sociability. A combination of surveys, asset mapping, geographic information system analysis, and onsite observations allows an assessment of the overall vibrancy of the area. The analysis pays particular attention to the number, location, and quality of key gathering places within the district, as well as what uses are missing from the overall mix. These factors are important in encouraging cross-disciplinary socializing, broadening the shared benefit of innovation districts to the surrounding community, and encouraging entrepreneurs, investors, researchers, residents, and others to put down roots in the district. 

This plaza at the corner of 36th and Walnut Streets in Philadelphia’s innovation district provides a prime example of a quality place.

Diversity and inclusion: Is the innovation district a diverse and inclusive place that provides broad opportunity for city residents?

This audit question aims to help district leaders understand the extent to which a district supports the advancement of local residents in the emerging district economy. Unlike science parks and corridors, innovation districts are commonly surrounded by socioeconomically diverse neighborhoods with many underserved residents. The mere proximity of these neighborhoods creates unique opportunities to grow and develop the diversity of workers in the innovation economy and the supportive industries it generates; to catalyze the local economy through procurement programs and place-based opportunities for entrepreneurship; and to leverage the influence of these districts to secure new amenities and services that would benefit workers and surrounding residents alike.

Innovation districts should strive to be diverse and inclusive, qualities that can be measured in a variety of ways. The Oklahoma City innovation district, for example, has jobs that can be filled by local residents who do not have four-year college degrees.

The audit analyzes the demographic composition of the district’s residents and employees as well as of adjacent neighborhoods, and compares those figures to the city or region as a whole. It also seeks to determine whether opportunities for economic inclusion exist based on jobs available and specific institutional practices that support inclusive growth. For example, do anchor institutions have local procurement policies in place to hire local firms and workers? Other specific data include employment by race, income, and educational attainment, and the level of education required for entry into district employment. This assessment also includes place-based measures such as access to healthy groceries, parks, pharmacies, and other basic goods and services.

Culture and collaboration: Is the innovation district connecting the dots between people, institutions, economic clusters, and place—creating synergies at multiple scales and platforms?

Answering this question requires qualitative research to analyze a district’s overall culture and risk-taking environment, and whether physical spaces and programs are cultivating collaboration. In the future, we expect to strengthen and systematize this part of the audit by, for example, using online surveys to scale-up findings and make them comparable across districts.

Testing the audit

Brookings and PPS selected Oklahoma City and Philadelphia for audit testing as part of a larger engagement to support each city’s innovation district. The fact that the two districts have highly differentiated economic clusters and research strengths helps our research because we can discern whether specific data sets can work across very different districts. Of equal value, both districts have highly motivated stakeholders who were willing to engage in the testing and experimentation. Here is the draft audit of the Oklahoma City innovation district, allowing you to see how the analysis is shaping up.

In cases where formal district boundaries did not already exist, PPS and Brookings collaborated with local leaders to define the geography. While we generally do not advocate for places to draw borders—recognizing that market changes will change the geography of innovation—boundaries are essential for data collection and analysis.

Our work moving forward will involve tightening the audit and testing the framework in a third city.

Conclusion

The tremendous complexities embedded in innovation districts are challenging to understand, let alone measure.

As we proceed with fine tuning the audit, we will need to assess whether it will be possible to create a high-level audit that enables innovation districts to assess themselves or whether the audit will demand more intensive data collection, which will require the use of outside experts. In either scenario, our ambition is to write a guidebook to help the local leaders and practitioners think critically about their starting assets.

So if you think you have an innovation district, your best path forward is to undertake an empirically grounded exercise of self-discovery. We believe an evidence-driven assessment will both enable a district to leverage its own distinctive strengths and provide investors and companies with the data necessary to warrant increased investment and business presence. The result will be more businesses, more jobs, more local revenues, and more opportunities for equitable, sustainable growth.

Authors

      
 
 




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The real reason your paycheck is not where it could be


For more than a decade, the economy’s rate of productivity growth has been dismal, which is bad news for workers since their incomes rise slowly or not at all when this is the case. Economists have struggled to understand why American productivity has been so weak. After all, with all the information technology innovations that make our lives easier like iPhones, Google, and Uber, why hasn’t our country been able to work more productively, giving us either more leisure time, or allowed us to get more done at work and paid more in return?

One answer often given is that the government statisticians must be measuring something wrong – notably, the benefits of Google and all the free stuff we can now access on our phones, tablets and computers. Perhaps government statisticians just couldn’t figure out how to include those new services in a meaningful way into the data?

A new research paper by Fed economists throws cold water on that idea. They think that free stuff like Facebook should not be counted in GDP, or in measures of productivity, because consumers do not pay for these services directly; the costs of providing them are paid for by advertisers. The authors point out that free services paid for by advertising are not new; for example, when television broadcasting was introduced it was provided free to households and much of it still is.

The Fed economists argue that free services like Google are a form of “consumer surplus,” defined as the value consumers place on the things they buy that is over and above the price they have paid. Consumer surplus has never been included in past measures of GDP or productivity, they point out. Economist Robert Gordon, who commented on the Fed paper at the conference where it was presented, argued that even if consumer surplus were to be counted, most of the free stuff such as search engines, e-commerce, airport check-in kiosks and the like was already available by 2004, and hence would not explain the productivity growth slowdown that occurred around that time.

The Fed economists also point out that the slowdown in productivity growth is a very big deal. If the rate of growth achieved from 1995 to 2004 had continued for another decade, GDP would have been $3 trillion higher, the authors calculate. And the United States is not alone in facing weak productivity; it is a problem for all developed economies. It is hard to believe that such a large problem faced by so many countries could be explained by errors in the way GDP and productivity are measured.

Even though I agree with the Fed authors that the growth slowdown is real, there are potentially serious measurement problems for the economy that predate the 2004 slowdown.

Health care is the most important example. It amounts to around 19% of GDP and in the official accounts there has been no productivity growth at all in this sector over many, many years. In part that may reflect inefficiencies in health care delivery, but no one can doubt that the quality of care has increased. New diagnostic and scanning technologies, new surgical procedures, and new drugs have transformed how patients are treated and yet none of these advances has been counted in measured productivity data. The pace of medical progress probably was just as fast in the past as it is now, so this measurement problem does not explain the slowdown. Nevertheless, trying to obtain better measures of health care productivity is an urgent task. The fault is not with the government’s statisticians, who do a tremendous job with very limited resources. The fault lies with those in Congress who undervalue good economic statistics.

Gordon, in his influential new book The Rise and Fall of American Growth, argues that the American engine of innovation has largely run its course. The big and important innovations are behind us and future productivity growth will be slow. My own view is that the digital revolution has not nearly reached an end, and advances in materials science and biotechnology promise important innovations to come. Productivity growth seems to go in waves and is impossible to forecast, so it is hard to say for sure if Gordon is wrong, but I think he is.

Fortune reported in June 2015 that 70% of its top 500 CEOs listed rapid technological change as their biggest challenge. I am confident that companies will figure out the technology challenge, and productivity growth will get back on track, hopefully sooner rather than later.


Editor’s note: This piece originally appeared in Fortune.

Publication: Fortune
Image Source: © Jessica Rinaldi / Reuters
      
 
 




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No matter which way you look at it, tech jobs are still concentrating in just a few cities

In December, Brookings Metro and Robert Atkinson of the Information Technology & Innovation Foundation released a report noting that 90% of the nation's innovation sector employment growth in the last 15 years was generated in just five major coastal cities: Seattle, Boston, San Francisco, San Diego, and San Jose, Calif. This finding sparked appropriate consternation,…

       




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Assessing your innovation district: A how-to guide

“Assessing your innovation district: A how-to guide,” is a tool for public and private leaders to audit the assets that comprise their local innovation ecosystem. The guide is designed to reveal how to best target resources toward innovative and inclusive economic development tailored to an area’s unique strengths and challenges. Over the past two decades,…

       




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Assessing your innovation district: Five key questions to explore

Over the past two decades, a confluence of changing market demands and demographic preferences have led to a revaluation of urban places—and a corresponding shift in the geography of innovation. This trend has resulted in a clustering of firms, intermediaries, and workers—often near universities, medical centers, or other anchors—in dense innovation districts. Local economic development…

       




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Solutions to Chicago’s youth violence crisis

Arne Duncan, former U.S. secretary of education during the Obama administration and now a nonresident senior fellow with the Brown Center on Education Policy, discusses the crisis of youth violence in Chicago and solutions that strengthen schools and encourage more opportunities for those who are marginalized to make a living in the legal economy. http://directory.libsyn.com/episode/index/id/4485071…

       




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Disrupting the cycle of gun violence: A candid discussion with young Chicago residents

Watch a video of the event on CSPAN.org » The lives of young people are disrupted, traumatized, and cut short by gun violence every single day in the United States. Despite progress being made in some cities to reduce gun violence, communities in Chicago have recently endured record numbers of homicides and shootings. Over 71 percent…

       




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Empowering young people to end Chicago’s gun violence problem

Former U.S. Secretary of Education Arne Duncan sits down with young men from Chicago CRED (Creating Real Economic Diversity) to discuss the steps they have taken to disrupt the cycle of gun violence in their community and transition into the legal economy. http://directory.libsyn.com/episode/index/id/6400344 Also in this episode, meet David M. Rubenstein Fellow Randall Akee in…

       




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Hutchins Roundup: Medical billing, young firms, and more

Studies in this week’s Hutchins Roundup find that collecting payments from insurers is highly costly for health care providers, superstar firms account for less of productivity growth than previously thought, and more. Want to receive the Hutchins Roundup as an email? Sign up here to get it in your inbox every Thursday. Costly billing hassles…

       




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Five books you should read to better understand Islam


After a recent talk about my ISIS book, one of the audience members asked, “What can I read to help me not hate Islam?” I don’t think it’s a scholar’s job to persuade others to love or hate any culture. But the question was sincere, so I suggested some books that have helped me better understand Islam. I also put the question to Twitter. Below is some of what I and others came up with.

Two cautions before we dive in: First, the list is obviously not exhaustive and I’ve left out overly apologetic books—in my experience, they only increase the skeptical reader’s suspicion that she’s being suckered. Second, people on Twitter gave me great suggestions but I’ve only included those I’ve read and can vouch for:

Muhammad and the Quran: Two of the best books you’ll ever read about Muhammad and the Quran are also the shortest: The Koran: A Very Short Introduction and Muhammad, both by Michael Cook. He writes with great wit and deep scholarship.

Other scriptures: Most non-Muslims are unaware that Islamic scripture is more than the Quran. It includes a vast collection of words and deeds attributed to Muhammad by later authors. These scriptures are sort of like the Gospels, and Muslim scholars fight over their authenticity like Christian scholars debate about the accuracy of Matthew, Mark, Luke, and John. These extra Islamic scriptures contain most of the teachings that make modern people (Muslims included) uncomfortable about Islam. One of the world’s experts on these scriptures, Jonathan Brown, has written a terrific book about them, Misquoting Muhammad.

Rumi: The medieval mystic’s poems about life and death are beautiful and moving, no matter your belief system. I loved his poems so much as an undergrad that I went on to study Middle Eastern languages just so I could read his work in the original. I’m glad I first viewed Islam through the eyes of Rumi and not a group like ISIS. Neither is solely representative of Islam but both draw heavily on its scriptures and reach such different conclusions.

The Bible: Many people recommended reading the Bible to decrease hate of Islam. The nerd in me leapt to the least obvious conclusion, “Ah, good idea! Reading some of the rough stuff in the Hebrew Bible is a good way to put a kindred ancient religion like Islam in perspective.” But they meant something a little less complicated:

It’s a worthy perspective today no matter your faith.

Authors

Image Source: © David Gray / Reuters
     
 
 




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If you can’t keep hackers out, find and remove them faster

In the wake of recent intrusions into government systems, it is difficult to identify anyone who believes defenders have the advantage in cyberspace. Digital adversaries seem to achieve their objectives at will, spending months inside target networks before someone, usually a third party, discovers the breach. Following the announcement, managers and stakeholders commit to improving…

       




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New cybersecurity mantra: “If you can’t protect it, don’t collect it”

In early August I attended my 11th Black Hat USA conference in sunny Las Vegas, Nevada. Black Hat is the somewhat more corporate sibling of the annual DEF CON hacker convention, which follows Black Hat. Since my first visit to both conferences in 2002, I’ve kept tabs on the themes expressed by computer security practitioners.…

       




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Can taxing the rich reduce inequality? You bet it can!


Two recently posted papers by Brookings colleagues purport to show that “even a large increase in the top marginal rate would barely reduce inequality.”[1]  This conclusion, based on one commonly used measure of inequality, is an incomplete and misleading answer to the question posed: would a stand-alone increase in the top income tax bracket materially reduce inequality?  More importantly, it is the wrong question to pose, as a stand-alone increase in the top bracket rate would be bad tax policy that would exacerbate tax avoidance incentives.  Sensible tax policy would package that change with at least one other tax modification, and such a package would have an even more striking effect on income inequality.  In brief:

    • stand-alone increase in the top tax bracket would be bad tax policy, but it would meaningfully increase the degree to which the tax system reduces economic inequality.  It would have this effect even though it would fall on just ½ of 1 percent of all taxpayers and barely half of their income.
    • Tax policy significantly reduces inequality.  But transfer payments and other spending reduce it far more.  In combination, taxes and public spending materially offset the inequality generated by market income.
    • The revenue from a well-crafted increase in taxes on upper-income Americans, dedicated to a prudent expansions of public spending, would go far to counter the powerful forces that have made income inequality more extreme in the United States than in any other major developed economy.

[1] The quotation is from Peter R. Orszag, “Education and Taxes Can’t Reduce Inequality,” Bloomberg View, September 28, 2015 (at http://bv.ms/1KPJXtx). The two papers are William G. Gale, Melissa S. Kearney, and Peter R. Orszag, “Would a significant increase in the top income tax rate substantially alter income inequality?” September 28, 2015 (at http://brook.gs/1KK40IX) and “Raising the top tax rate would not do much to reduce overall income inequality–additional observations,” October 12, 2015 (at http://brook.gs/1WfXR2G). 

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Youth unemployment in Egypt: A ticking time bomb

Earlier this week, a satirical Facebook post announced that the Egyptian Army engineers have developed an Egyptian dollar to combat the continued rise of the U.S. dollar. The new and improved $100 note features Egyptian President Abdel-Fattah el-Sissi’s photo instead of Benjamin Franklin’s. Another post shows a video of Karam, a simple man from upper Egypt, revealing his secret […]

      
 
 




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Saez and Zucman say that everything you thought you knew about tax policy is wrong

In their new book, The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay, economists Emmanuel Saez and Gabriel Zucman challenge seemingly every fundamental element of conventional tax policy analysis. Given the attention the book has generated, it is worth stepping back and considering their sweeping critique of conventional wisdom.…