Milken Institute Review First Quarter 2015

January 2015
C1 MR65

In this issue of the Milken Institute Review, Peter Cappelli of Penn’s Wharton School takes aim at the received wisdom that the U.S. economy suffers from shortages of vital labor skills. “It is difficult,” he writes, “to think of another labor market issue in which rigorous research is so lacking, where parties with a material interest in the outcomes have so dominated the discussion, where the quality of evidence and discussion has been so poor, and where the stakes are so large.”

Also, Ben Bland of the Financial Times assesses Indonesia’s economic prospects in the wake of the election of a president apparently determined to challenge crony-capitalism-as-usual. Alan Krueger, a former chairman of President Obama’s Council of Economic Advisers, acknowledges the value of Thomas Piketty’s high-profile book in spurring public debate over income inequality, but argues that Piketty ignores the related – and more important – issue of intergeneration mobility. Seema Jayachandran, an economist at Northwestern, offers an unconventional (and disquieting) view about the prospects for women in emerging-market countries. Reihan Salam, the executive editor of the National Review, outlines the policy agenda of what has come to be known as reform conservatism. John Komlos, a former professor of economics at the University of Munich, wonders whether the ongoing celebration of Schumpeter’s “creative destruction” has passed its sell-by date. Reena Aggarwal (Georgetown University), Daniel Gorfine (OnDeck and Milken Institute) and Dana Stefanczyk (Georgetown) address the efficiency of capital markets, a chronic issue for advanced and developing economies alike.