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New research on systems from Harvard Business School faculty on issues including systems architecture and modularity.
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Income Inequality Is Rising. Are We Even Measuring It Correctly?

by Jon M. Jachimowicz, Kristin Blesch, and Oliver P. Hauser

Policymakers trying to shrink the income gap have long relied on a statistical benchmark to guide decisions. But taking a broader view of inequality might lead to better solutions, say Jon Jachimowicz and colleagues.

University of the Future: Finding the Next World Leaders in Higher Ed

by Dina Gerdeman

Which universities will step into the void as American colleges decline? In the book Empires of Ideas, William Kirby explores how the history of higher education in the US, China, and Germany might shape its future.

Digital Labor Market Inequality and the Decline of IT Exceptionalism

by Ruiqing Cao and Shane Greenstein

The experience in five cities accounts for almost all the wage inequality in IT wages in the US between 2000 and 2018. Overall that brought IT wages closer to STEM wages.

Gender Inequality in Research Productivity During the COVID-19 Pandemic

by Ruomeng Cui, Hao Ding, and Feng Zhu

Analysis of data from the largest open-access repositories for social science in the world finds that female researchers’ productivity significantly dropped relative to that of male researchers as a result of the lockdown in the United States.

What Is an "Essential" Purchase for a Low-Income Family?

by Rachel Layne

Phone or flour? People with lower incomes are judged more harshly for what they choose to buy, say Serena F. Hagerty and Kate Barasz. Open for comment; 0 Comments.

Spreading the Health: Americans' Estimated and Ideal Distributions of Death and Health(care)

by Sorapop Kiatpongsan and Michael I. Norton

Across varying political ideologies and income levels, Americans both underestimate the current extent of inequality of mortality and healthcare, and prefer each to be more equally distributed.

Changing In-group Boundaries: The Role of New Immigrant Waves in the US

by Vasiliki Fouka, Shom Mazumder, and Marco Tabellini

How do new immigrants affect natives’ views of other minority groups? This work studies the evolution of group boundaries in the United States and indicates that whites living in states receiving more Mexican immigrants recategorize blacks as in-group members, because of the inflow of a new, “affectively” more distant group.

Product Disasters Can Be Fertile Ground for Innovation

by Michael Blanding

Rather than chilling innovation, product accidents may provide companies an unexpected opportunity to develop new technologies desired by consumers, according to Hong Luo and Alberto Galasso. Open for comment; 0 Comments.

‘Organizing’, ‘Innovating’, and ‘Managing’ in Complexity Space

by Michael C. Moldoveanu

This paper explores organizational complexity by proposing a two-dimensional framework to help us understand organizational coping mechanisms and failure modes. The framework makes it possible to ask new questions about organizational adaptations to complexity that investigate its underlying structure and dynamics.

How Gender Stereotypes Kill a Woman’s Self-Confidence

by Dina Gerdeman

Researchers believe gender stereotypes hold women back in the workplace. Katherine Coffman's research adds a new twist: They can even cause women to question their own abilities. Open for comment; 0 Comments.

Quantile Forecasts of Product Life Cycles Using Exponential Smoothing

by Xiaojia Guo, Kenneth C. Lichtendahl Jr., and Yael Grushka-Cockayne

Many important business decisions rely on a manager’s forecast of a product or service’s life cycle. One of the most widely used forecasting techniques is exponential smoothing models. This paper introduces a model suitable for large-scale forecasting environments where key operational decisions depend on quantile forecasts.

Knowing What Your Boss Earns Can Make You Work Harder

by Rachel Layne

Learning what your co-worker earns can make you less productive, but knowing your manager's paycheck can motivate you to work harder. Research by Zoë Cullen. Open for comment; 0 Comments.

Celebrating 'The Men and Women of the Corporation' 40 Years Later

by Robin J. Ely

Rosabeth Moss Kanter’s Men and Women of the Corporation inspired and informed a generation of scholars studying gender, status, and power. Robin J. Ely interviews Kanter about her groundbreaking research and why it remains relevant today. Open for comment; 0 Comments.

Corporate Tax Cuts Don't Increase Middle Class Incomes

by Roberta Holland

New research by Ethan Rouen and colleagues suggests that corporate tax cuts contribute to income inequality. Open for comment; 0 Comments.

Complex Disclosure

by Ginger Zhe Jin, Michael Luca, and Daniel Martin

This study shows that companies looking to hide unfavorable information might strategically be making contract terms unnecessarily complex, harming consumers and undermining the effectiveness of disclosure. These results highlight a role for regulation that would encourage simpler forms of disclosure.

Corporate Tax Cuts Increase Income Inequality

by Suresh Nallareddy, Ethan Rouen, and Juan Carlos Suárez Serrato

This paper examines corporate tax reform by estimating the causal effect of state corporate tax cuts on top income inequality. Results suggest that, while corporate tax cuts increase investment, the gains from this investment are concentrated on top earners, who may also exploit additional strategies to increase the share of total income that accrues to the top 1 percent.

Credit Supply Shocks, Network Effects, and the Real Economy

by Laura Alfaro, Manuel García, and Enrique Moral-Benito

Using data for Spain between 2003 and 2013, this study examines firms’ responses to credit supply shocks during times of boom (expansion) and bust (financial crisis and recession). Results indicate that propagation of these shocks through the Spanish production network doubles the magnitude of the real effects typically estimated in the literature. This study also shows how such effects vary greatly during booms and busts.

Leadership Lessons from a Young Martin Luther King, Jr.

As a young man, Martin Luther King, Jr. was unsure about his future as a leader of a social change. Bill George explains how King grew to become one of the most powerful civil rights leaders in history. Open for comment; 0 Comments.

Come Together: Firm Boundaries and Delegation

by Laura Alfaro, Nick Bloom, Paola Conconi, Harald Fadinger, Patrick Legros, Andrew F. Newman, Raffaella Sadun, and John Van Reenen

The study develops a simple model and provides new data to examine the relationship between vertical integration and delegation of decision-making, two critical aspects of a firm organizational design that are typically studied in isolation. The results show that delegation and vertical integration are positively correlated.

Equity Concerns Are Narrowly Framed

by Christine L. Exley and Judd B. Kessler

This paper based on a large online study finds that individuals tend to differentiate in their concerns about fairness along specific dimensions, especially time and money, and are much more worried about fairness in one (time) than the other (money). These attitudes may help explain a seemingly wide variety of phenomena.