Region: United States
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The Online Platform Economy adds an important new element to existing labor markets, however. Simply put, landing a platform job is easier and quicker. Individuals can, and do, generate additional income on labor platforms in a timely fashion when they experience a dip in regular earnings. This is a potentially far better option to mitigate or weather volatility, if the alternatives are to constrain spending or take on additional credit. Moreover, this option meets a target need. Participation in labor platforms is highest precisely among those who experience the highest levels of income volatility—the young, the poor, and individuals living in the West.
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A new study for the Mercatus Center at George Mason University uses an economic model that examines regulation’s effect on firms’ investment choices. Using a 22-industry dataset that covers 1977 through 2012, the study finds that regulation—by distorting the investment choices that lead to innovation—has created a considerable drag on the economy, amounting to an average reduction in the annual growth rate of the US gross domestic product (GDP) of 0.8 percent.
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New sources of labor should be top of mind for CEOs as they contemplate protracted labor shortages. These shortages will hit most industries, pinching profits and prolonging the economic slowdown. . . An unprecedented confluence of trends—historically low productivity growth and massive baby boomer retirements—has set the stage for shortages that will hit across regions and industries.
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The Index of the Massachusetts Innovation Economy, published annually since 1997, is the premier fact-based benchmark for measuring the performance of the Massachusetts knowledge economy.
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Nov. 17, 2017 / Andrew Khouri

Nov. 17, 2017 / The Editorial Board