Tuesday , October 15 2019
Home / New York Fed
The author New York Fed
New York Fed
The Federal Reserve Bank of New York was incorporated in May 1914 and opened for business in November later that year. To commemorate the New York Fed’s centennial, take a look at the people and events that helped shape our history.

New York Fed

Is Free College the Solution to Student Debt Woes? Studying the Heterogeneous Impacts of Merit Aid Programs

Rajashri Chakrabarti, William Nober, and Wilbert van der Klaauw The rising cost of a college education has become an important topic of discussion among both policymakers and practitioners. At least eleven states have recently introduced programs to make public two-year education tuition free, including New York, which is rolling out its Excelsior Scholarship to provide tuition-free four-year college education to low-income students across the SUNY and CUNY systems. Prior to these...

Read More »

Who Borrows for College—and Who Repays?

Andrew F. Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw Student loans are increasingly a focus of discourse among politicians, policymakers, and the news media, resulting in a range of new ideas to address the swelling aggregate debt. Evaluating student loan policy proposals requires understanding the challenges faced by student borrowers. In this post, we explore the substantial variation in the experiences of borrowers and consider the...

Read More »

Job Ladders and Careers

Fatih Karahan, Brendan Moore, and Serdar Ozkan Workers in the United States experience vast differences in lifetime earnings. Individuals in the 90th percentile earn around seven times more than those in the 10th percentile, and those in the top percentile earn almost twenty times more. A large share of these differences arise over the course of people’s careers. What accounts for these vastly different outcomes in the labor market? Why do some individuals experience much steeper...

Read More »

Some Places Are Much More Unequal than Others

Jaison R. Abel and Richard Deitz Economic inequality in the United States is much more pronounced in some parts of the country than others. In this post, we examine the geography of wage inequality, drawing on our recent Economic Policy Review article. We find that the most unequal places tend to be large urban areas with strong economies where wage growth has been particularly strong for those at the top of the wage distribution. The least unequal places, on the other hand, tend to...

Read More »

Introduction to Heterogeneity Series: Understanding Causes and Implications of Various Inequalities

Rajashri Chakrabarti and William Nober Economic analysis is often geared toward understanding the average effects of a given policy or program. Likewise, economic policies frequently target the average person or firm. While averages are undoubtedly useful reference points for researchers and policymakers, they don’t tell the whole story: it is vital to understand how the effects of economic trends and government policies vary across geographic, demographic, and socioeconomic...

Read More »

U.S. Virgin Islands Struggle While Puerto Rico Rebounds

Jason Bram Two years after hurricanes Irma and Maria wreaked havoc on Puerto Rico and the U.S. Virgin Islands, the two territories’ economies have moved in very different directions. When the hurricanes struck, both were already in long economic slumps and had significant fiscal problems. As of the summer of 2019, however, Puerto Rico’s economy was showing considerable signs of improvement since the hurricanes, while the Virgin Islands’ economy remained mired in a deep slump through...

Read More »

The New York Fed DSGE Model Forecast—September 2019

Ozge Akinci, William Chen, Marco Del Negro, Ethan Matlin, and Reca Sarfati This post presents an update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE) model. We describe very briefly our forecast and its change since June 2019. As usual, we wish to remind our readers that the DSGE model forecast is not an official New York Fed forecast, but only an input to the Research staff’s overall forecasting...

Read More »

Minimum Wage Impacts along the New York-Pennsylvania Border

Jason Bram, Fatih Karahan, and Brendan Moore The federal minimum wage, currently set at $7.25 per hour, has remained unchanged for the longest stretch of time since its 1938 inception under the Fair Labor Standards Act. With the real purchasing power of the federal minimum wage eroded by inflation, many states and municipalities have raised their local minimum wages. As of July 2019, fourteen states plus the District of Columbia—home to 35 percent of Americans—have minimum wages above...

Read More »

Just Released: Transitions to Unemployment Tick Up in Latest SCE Labor Market Survey

Gizem Kosar and Kyle Smith The Federal Reserve Bank of New York’s July 2019 SCE Labor Market Survey shows a year-over-year rise in employer-to-employer transitions as well as an increase in transitions into unemployment. Satisfaction with promotion opportunities and wage compensation was largely unchanged, while satisfaction with non-wage benefits retreated. Regarding expectations, the average expected wage offer (conditional on receiving one) and the average reservation wage—the...

Read More »

Once Upon a Time in the Banking Sector: Historical Insights into Banking Competition

Mark Carlson, Sergio Correia, and Stephan Luck How does competition among banks affect credit growth and real economic growth? In addition, how does it affect financial stability? In this blog post, we derive insights into this important set of questions from novel data on the U.S. banking system during the nineteenth century. The Effects of Banking Competition According to Econ 101, an increase in competition should—under fairly general assumptions—lead to...

Read More »