Using Machine Learning and Digital Technology to Identify Challenges and Improve Outcomes for Labor Market Transitions

This talk will review several recent papers that focus on labor market transitions. The first project analyzes worker resilience in response to layoffs, using administrative data from Sweden. Recently developed machine learning methods identify and characterize groups of workers who are predictably less resilient to layoffs. There is substantial heterogeneity within firms and within markets in terms of worker resilience. Second, recent work applies foundation models based on custom-created transformer neural networks and/or large language models to model worker careers and decompose gender wage gaps, identifying areas where unexplained wage gaps remain relatively large. Two additional projects create, implement, and evaluate digital interventions that help disadvantaged workers successfully transition into growing occupations related to information technology and data science.

Lecture by:

Susan Athey, The Economics of Technology Professor, Stanford Graduate School of Business; Professor of Economics (by courtesy), School of Humanities and Sciences, Stanford University; Senior Fellow, Stanford Institute for Economic Policy Research

Discussants:

Bentley MacLeod, Sami Mnaymneh Professor Emeritus of Economics, Columbia University
Suresh Naidu, Jack Wang and Echo Ren Professor of Economics, Prof. of International and Public Affairs, Columbia University
Joseph Stiglitz, 2001 Nobel Laureate and University Professor, Columbia University

Introductory remarks by:

Michael Woodford, John Bates Clark Professor of Economics, Columbia University

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About the Kenneth J. Arrow Lecture SeriesThe Kenneth J. Arrow Lecture Series highlights economists, from Nobel laureates to groundbreaking younger scholars, whose work builds on Kenneth J. Arrow’s scholarship as well as his innovative spirit. The books in the series are an expansion of the lectures that are held in Arrow’s honor at Columbia University.

About the Institute of Global Politics (IGP) at Columbia SIPAThe Institute of Global Politics (IGP) convenes leading scholars and practitioners to advance policy solutions to today’s pressing global challenges. IGP brings together experts—from the public and private sectors and across the political spectrum—to foster civil discourse and create evidence-based policy strategies for local to global impact.

About the Center for Political Economy at Columbia World Projects

Launched in 2022, the Columbia Center for Political Economy has two primary goals: to identify and advance the most promising post-2008 developments within economics and to promote a new political economy with robust philosophical underpinnings. This approach is distinctive for our time, with an institutional, cross-disciplinary orientation connecting economics to history, law, political science, sociology, public health, engineering, data science and more.

About the Program for Economic Research at Columbia’s Department of Economics

Founded in 2003, the Program for Economic Research (PER) at Columbia University focuses on identifying and funding research aimed at the economic challenges, trends, and policies affecting people around the world, informing our understanding of global economic issues. PER’s diverse portfolio of academic programs and initiatives combines theory with practical application, emphasizing open access and active learning. Key focus areas include developing innovative statistical measurements, estimating quantitative models of economic behavior, and analyzing the effects of public policies at home and abroad.

15th Annual Kenneth J. Arrow Lecture with Susan Athey