- Policies that help them find good job matches including job search assistance and unemployment insurance.
- Investment in education, particularly drop-out prevention and mid-level skills.
- Moving our public training policies closer to providing skills that firms demand. WIA has a good start on this, but efforts like apprenticeship (which don't even have to be public - or they can be private with a small public subsidy) would be good too.
- Macroeconomic policy aimed at full employment (i.e. - not the austerity we've seen since ARRA).
- I would have said job creation tax credits a couple years ago except the results I'm getting for my dissertation chapter on this policy are changing my priors... not sure what I think now. I'll report back a couple years from now.
- Early interventions like Head Start, WIC, food stamps, etc. that ensure that cognitive development of children from low-income families is not hampered by circumstances outside of their control.
- Earned income tax credit and other labor supply policies. Extended time out of the labor market can lead to a lot of human capital depreciation. Even if we think demand-side problems are the biggest problems right now, this is important for that reason.
- Repeal of a lot of stupid licensure requirements.
- Maybe not being so ridiculously lop-sided in treatment of corporate labor (unions) relative to treatment of corporate capital. I was skeptical of unions for a very long time, but Richard Freeman is starting to change my priors on that.
There's certainly others.
For the Weekend...
2 hours ago