Brian Chingono

.@PeteKlenow and Huiyu Li argue that rising labor productivity raises the entry costs for new firms through higher wages and start-up costs, limiting the impact of productivity-enhancing policies on welfare. In the U.S., the number of workers per firm is stable or rises with output per worker over time and across states. This fact can be explained by a model in which entry costs rise with labor productivity.

There are about 10.5m people living outside China who are, or once were, Chinese citizens. Only the Indian, Russian, and Mexican diasporas are larger. Some of these Chinese are among the country’s richest people. More than 70% of the 81,000 investor visas issued by the American government to dollar-millionaires between 2010 and 2019 were given to Chinese citizens. There are signs that post-pandemic, the outflow of extreme wealth is accelerating.

Understanding where growth forecasts are accurate and where they err.