Adam Smith Business School

Professor Daron Acemoglu, MIT

"Employment and Community: Socioeconomic Cooperation and Its Breakdown"
Tuesday, 14 May. 16:00
Room 489 ASBS PGT

Abstract

Motivated by trends in US inequality and community relations, we propose a model of the interplay of employment relationships and community-based interactions among workers and managers. Employment relations can be either tough (where workers are monitored intensively and obtain few rents, and managers do not provide informal favors for their workers) or soft (where there is less monitoring, more worker rents, and more workplace favor exchange). Both workers and managers also exert effort in providing community benefits. The threat of losing access to community benefits can motivate managers to keep employment soft; conversely, the threat of losing future employment or future workers’ trust can motivate workers and managers to exert effort in the community. Improvements in monitoring technologies; automation, outsourcing, and offshoring; declines in the minimum wage; and opportunities for residential segregation or for privatizing communityprovided services can make both workers and managers worse-off by undermining soft employment relations and community cooperation.

Bio

Daron Acemoglu an Institute Professor at MIT and an elected fellow of the National Academy of Sciences, American Philosophical Society, the British Academy of Sciences, the Turkish Academy of Sciences, the American Academy of Arts and Sciences, the Econometric Society, the European Economic Association, and the Society of Labor Economists. He is also a member of the Group of Thirty. He is the author of six books, including New York Times bestseller Why Nations Fail: Power, Prosperity, and Poverty (joint with James A. Robinson), Introduction to Modern Economic Growth, The Narrow Corridor: States, Societies, and the Fate of Liberty (with James A. Robinson), and Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity (with Simon Johnson). His academic work covers a wide range of areas, including political economy, economic development, economic growth, technological change, inequality, labor economics and economics of networks. He received the inaugural T. W. Shultz Prize from the University of Chicago in 2004, and the inaugural Sherwin Rosen Award for outstanding contribution to labor economics in 2004, Distinguished Science Award from the Turkish Sciences Association in 2006, the John von Neumann Award, Rajk College, Budapest in 2007, the Carnegie Fellowship in 2017, the Jean-Jacques Laffont Prize in 2018, the Global Economy Prize in 2019, and the CME Mathematical and Statistical Research Institute prize in 2021. He was awarded the John Bates Clark Medal in 2005, the Erwin Plein Nemmers Prize in 2012, and the 2016 BBVA Frontiers of Knowledge Award. He holds Honorary Doctorates from the University of Utrecht, the Bosporus University, University of Athens, Bilkent University, the University of Bath, Ecole Normale Superieure, Saclay Paris, and the London Business School. 

 

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First published: 19 April 2024