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Innovative Investments in Local Jails
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In research conducted in collaboration with Arkey Barnett at the University of Michigan and Meghan Beal at the National Sheriffs’ Association, we investigate the effects of innovative investments in local jails that aim to improve health and rehabilitation outcomes for incarcerated individuals and their communities. The US has one of the highest incarceration rates in the world, with nearly 2 million people detained in correctional facilities every year. While most people are held in state or federal prisons, local jails house 546,000 individuals across 3,116 facilities, the majority of whom are not convicted. Local jails serve as the front door to the criminal justice system, with more than 7.6 million admissions per year and a significant share of those released being rebooked within the same year, revealing a persistent…
A research summary from the monthly NBER Digest
When Input Prices Rise, Cheaper Varieties See Higher Inflation
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Observers of the 2021–2023 inflation noticed that cheaper products exhibited much higher inflation rates. What explains these differences in inflation, and what are the effects on households across the income spectrum? In Cheapflation Cycles (NBER Working Paper 35235), Kunal Sangani finds that the way firms pass through cost changes creates systematic differences in inflation between cheap and expensive product varieties, leading to differences in inflation experienced by consumers in different income strata. The study draws primarily on NielsenIQ retail scanner data covering food-at-home sales across more than 30,000 retail stores from 2006 to 2023, alongside NielsenIQ Homescan Consumer Panel data...
From the NBER Bulletin on Health
How Inspection Timing Affects Care Quality in US Nursing Homes
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Nursing homes certified by the Centers for Medicare & Medicaid Services to provide care and receive public reimbursement through Medicare and Medicaid are subject to mandatory annual inspections. While inspections are unannounced, they typically occur on an approximately yearly basis, as 74 percent of inspections take place between 40 and 60 weeks after the previous one. The average gap is around 53 weeks. Due to the cyclical nature of inspections, nursing home operators are able to anticipate when an inspection is likely and adjust their behavior accordingly. They appear to devote more effort to patient care when inspections are approaching.
In Predictably Unpredictable Inspections (NBER Working Paper 34491), Ashvin Gandhi, Andrew Olenski, and Maggie Shi study how the predictability of nursing home inspections shapes facility effort and patient...
From the NBER Bulletin on Entrepreneurship
Mixed Immigrant-Native Founding Teams Excel
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Roughly one-quarter of new employer businesses in the United States are started by immigrants. Immigrant inventors have been responsible for approximately 23 percent of US patents produced since 1976 despite making up only 16 percent of the total US-based inventor population. Yet immigrant entrepreneurs usually do not build companies in isolation—many cofound startups alongside US-born entrepreneurs. In Native-Immigrant Entrepreneurial Synergies (NBER Working Paper 33804), Zhao Jin, Amir Kermani, and Timothy McQuade examine whether startups cofounded by immigrant and native entrepreneurs outperform those with founders from exclusively one...
Featured Working Papers
Pension funds reduce their fixed income portfolio share when local currency bond yields fall. In the US, pension funds cut their portfolio share of bills and bonds from over 35 percent in the 1980s to below 15 percent in recent years, while raising holdings of mutual funds and alternative assets, according to Ding Ding, Xiang Fang, Bryan Hardy, and Karen K. Lewis.
Blake Jackson and Ilya A. Strebulaev compile a new data set on nearly 100,000 professionals in the US venture capital industry over the period 1996–2025. The sample covers nearly 96 percent of the funding disbursed by US venture capital firms. Favorable in investment returns are highly concentrated: the top 5 percent of VC investors account for roughly 90 percent of the sector’s profits.
The probability of retiring rises by 1.2 percentage points, or 12 percent of the baseline rate of about 10 percent, after a spouse is newly diagnosed with a health condition or experiences hospitalizations, according to Hyeran Chung, Haena Lee, and Sita Slavov. These retirements are concentrated among women and among those whose employers provide retiree health insurance coverage for both employees and their spouses.
Danish patients who initiated GLP-1 treatment took 17 percent less long-term sick leave over the following 4 years than similar patients who began treatment four years later, generating combined employer and public sector savings equal to nearly 1.5 percent of annual labor income per patient, according to N. Meltem Daysal, Camille JH. Fredrickson, Ida L. Kristiansen, Mircea Trandafir, and Jonathan Zhang.
Entry-level professional staff at US public accounting firms are paid 38 percent below their marginal revenue product while partners earn well above theirs, a pattern consistent with backloaded incentive pay, according to Michael Rubens and Bernardo S. Silveira.
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