nhaliday + automation + :/   6

key fact: cognitive ability is not growing in importance, but non-cognitive ability is

The labor market increasingly rewards social skills. Between 1980 and 2012, jobs requiring high levels of social interaction grew by nearly 12 percentage points as a share of the U.S. labor force. Math-intensive but less social jobs—including many STEM occupations—shrank by 3.3 percentage points over the same period. Employment and wage growth was particularly strong for jobs requiring high levels of both math skill and social skill. To understand these patterns, I develop a model of team production where workers “trade tasks” to exploit their comparative advantage. In the model, social skills reduce coordination costs, allowing workers to specialize and work together more efficiently. The model generates predictions about sorting and the relative returns to skill across occupations, which I investigate using data from the NLSY79 and the NLSY97. Using a comparable set of skill measures and covariates across survey waves, I find that the labor market return to social skills was much greater in the 2000s than in the mid 1980s and 1990s. JEL Codes: I20, I24, J01, J23, J24, J31

The Increasing Complementarity between Cognitive and Social Skills: http://econ.ucsb.edu/~weinberg/MathSocialWeinberger.pdf

The Changing Roles of Education and Ability in Wage Determination: http://business.uow.edu.au/content/groups/public/@web/@commerce/@research/documents/doc/uow130116.pdf

Intelligence and socioeconomic success: A meta-analytic review of longitudinal research: http://www.emilkirkegaard.dk/en/wp-content/uploads/Intelligence-and-socioeconomic-success-A-meta-analytic-review-of-longitudinal-research.pdf
Moderator analyses showed that the relationship between intelligence and success is dependent on the age of the sample but there is little evidence of any historical trend in the relationship.

that feelio when america has crossed an inflection point and EQ is obviously more important for success in todays society than IQ
I think this is how to understand a lot of "corporate commitment to diversity" stuff.Not the only reason ofc, but reason it's so impregnable
compare: https://pinboard.in/u:nhaliday/b:e9ac3d38e7a1
and: https://pinboard.in/u:nhaliday/b:a38f5756170d

g-reliant skills seem most susceptible to automation: https://fredrikdeboer.com/2017/06/14/g-reliant-skills-seem-most-susceptible-to-automation/

THE ERROR TERM: https://spottedtoad.wordpress.com/2018/02/19/the-error-term/
Imagine an objective function- something you want to maximize or minimize- with both a deterministic and a random component.


Part of y is rules-based and rational, part is random and outside rational control. Obviously, the ascent of civilization has, to the extent it has taken place, been based on focusing energies on those parts of the world that are responsive to rational interpretation and control.

But an interesting thing happens once automated processes are able to take over the mapping of patterns onto rules. The portion of the world that is responsive to algorithmic interpretation is also the rational, rules-based portion, almost tautologically. But in terms of our actual objective functions- the real portions of the world that we are trying to affect or influence- subtracting out the portion susceptible to algorithms does not eliminate the variation or make it unimportant. It simply makes it much more purely random rather than only partially so.

The interesting thing, to me, is that economic returns accumulate to the random portion of variation just as to the deterministic portion. In fact, if everybody has access to the same algorithms, the returns may well be largely to the random portion. The efficient market hypothesis in action, more or less.


But more generally, as more and more of the society comes under algorithmic control, as various forms of automated intelligence become ubiquitous, the remaining portion, and the portion for which individual workers are rewarded, might well become more irrational, more random, less satisfying, less intelligent.

Golden age for team players: https://news.harvard.edu/gazette/story/2017/10/social-skills-increasingly-valuable-to-employers-harvard-economist-finds/
Strong social skills increasingly valuable to employers, study finds

Number of available jobs by skill set (over time)

Changes in hourly wages by skill set (over time)

A resolution for the new year: Remember that intelligence is a predictor of social intelligence!
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august 2017 by nhaliday
Young Men Are Playing Video Games Instead of Getting Jobs. That's OK. (For Now.) - Reason.com
This is like a reversal of the industrious revolution studied in my JEBO paper: new consumption technologies are money cheap but time pricey

participation has changed along an understudied margin of labor supply. I find that “in-and-outs”—men who temporarily leave the labor force—represent a growing fraction of prime age men across multiple data sources and are responsible for roughly one third of the decline in the participation rate since 1977. In-and-outs take short, infrequent breaks out of the labor force in between jobs, but they are otherwise continuously attached to the labor force. Leading explanations for the growing share of permanent labor force dropouts, such as disability, do not apply to in-and-outs. Instead, reduced-form evidence and a structural model of household labor supply both indicate that the rise of in-and-outs reflects a shift in labor supply, largely due to the increasing earnings of men’s partners and the growth of men living with their parents.

Pointer from Tyler Cowen. My thoughts:

1. When we think of labor force participation declining, we think of, say, John Smith, deciding to never work again. What this paper is saying is that the statistics reflect something different. One month Smith takes a break, then next month he gets a job and Tom Jones takes a break.

2. I think we have always had a large number of workers who are not fully employed year round. That is, there have always been a lot of workers who take breaks between jobs. This is common in construction work, for example.

3. I don’t know if this matters for the phenomenon at hand, but we used to have inventory recessions. In those cases, workers would be out of a job for a while, but they would still be in the labor force, because they were waiting to be recalled by the firm that had laid them off.

4. It seems to me that this is an important paper. Re-read the last sentence in the quoted excerpt.

Job outlook growing worse for young American men: https://www.courier-journal.com/story/opinion/contributors/2018/01/02/job-outlook-growing-worse-young-american-men-opinion/996922001/
As one might imagine, the absence of a job, quality education, or spouse has not bred otherwise productive citizens. Multiple studies have found that young men have replaced what would otherwise be working hours with leisure time at a near 1-1 ratio. Erik Hurst, an economist at the University of Chicago, found that young men spent a startling 75 percent of this leisure time playing video games, with many spending more than 30 hours a week gaming and over 5 million Americans spending more than 45 hours per week.

Higher suicide rates, violent crime, and drug addiction among young men have followed. Suicide rates in the United States are at a 30-year high, with men more than three and a half times more likely to take their own lives than women. Around the United States, violent crimes, homicide in particular, has increased in two-thirds of American cities, with overwhelming young male perpetrators driving the increase. A 2015 Brookings Institute study estimated that nearly half of working-age American men who are out of the labor force are using painkillers, daily.

These problems have been “invisible” for too long.

As video games get better, young men work less and play more: http://review.chicagobooth.edu/economics/2017/article/video-games-get-better-young-men-work-less-and-play-more

Why Are Prime-Age Men Vanishing from the Labor Force?: https://www.kansascityfed.org/~/media/files/publicat/econrev/econrevarchive/2018/1q18tuzemen.pdf

Prime-Age Men May Never Return to U.S. Workforce, Fed Paper Says: https://www.bloomberg.com/news/articles/2018-02-23/prime-age-men-may-never-return-to-u-s-workforce-fed-paper-says
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june 2017 by nhaliday
Educational Romanticism & Economic Development | pseudoerasmus


Did Nations that Boosted Education Grow Faster?: http://econlog.econlib.org/archives/2012/10/did_nations_tha.html
On average, no relationship. The trendline points down slightly, but for the time being let's just call it a draw. It's a well-known fact that countries that started the 1960's with high education levels grew faster (example), but this graph is about something different. This graph shows that countries that increased their education levels did not grow faster.

Where has all the education gone?: http://citeseerx.ist.psu.edu/viewdoc/download?doi=




The Case Against Education: What's Taking So Long, Bryan Caplan: http://econlog.econlib.org/archives/2015/03/the_case_agains_9.html

The World Might Be Better Off Without College for Everyone: https://www.theatlantic.com/magazine/archive/2018/01/whats-college-good-for/546590/
Students don't seem to be getting much out of higher education.
- Bryan Caplan

College: Capital or Signal?: http://www.economicmanblog.com/2017/02/25/college-capital-or-signal/
After his review of the literature, Caplan concludes that roughly 80% of the earnings effect from college comes from signalling, with only 20% the result of skill building. Put this together with his earlier observations about the private returns to college education, along with its exploding cost, and Caplan thinks that the social returns are negative. The policy implications of this will come as very bitter medicine for friends of Bernie Sanders.

Doubting the Null Hypothesis: http://www.arnoldkling.com/blog/doubting-the-null-hypothesis/

Is higher education/college in the US more about skill-building or about signaling?: https://www.quora.com/Is-higher-education-college-in-the-US-more-about-skill-building-or-about-signaling
ballpark: 50% signaling, 30% selection, 20% addition to human capital
more signaling in art history, more human capital in engineering, more selection in philosophy

Econ Duel! Is Education Signaling or Skill Building?: http://marginalrevolution.com/marginalrevolution/2016/03/econ-duel-is-education-signaling-or-skill-building.html
Marginal Revolution University has a brand new feature, Econ Duel! Our first Econ Duel features Tyler and me debating the question, Is education more about signaling or skill building?

Against Tulip Subsidies: https://slatestarcodex.com/2015/06/06/against-tulip-subsidies/




Most American public school kids are low-income; about half are non-white; most are fairly low skilled academically. For most American kids, the majority of the waking hours they spend not engaged with electronic media are at school; the majority of their in-person relationships are at school; the most important relationships they have with an adult who is not their parent is with their teacher. For their parents, the most important in-person source of community is also their kids’ school. Young people need adult mirrors, models, mentors, and in an earlier era these might have been provided by extended families, but in our own era this all falls upon schools.

Caplan gestures towards work and earlier labor force participation as alternatives to school for many if not all kids. And I empathize: the years that I would point to as making me who I am were ones where I was working, not studying. But they were years spent working in schools, as a teacher or assistant. If schools did not exist, is there an alternative that we genuinely believe would arise to draw young people into the life of their community?


It is not an accident that the state that spends the least on education is Utah, where the LDS church can take up some of the slack for schools, while next door Wyoming spends almost the most of any state at $16,000 per student. Education is now the one surviving binding principle of the society as a whole, the one black box everyone will agree to, and so while you can press for less subsidization of education by government, and for privatization of costs, as Caplan does, there’s really nothing people can substitute for it. This is partially about signaling, sure, but it’s also because outside of schools and a few religious enclaves our society is but a darkling plain beset by winds.

This doesn’t mean that we should leave Caplan’s critique on the shelf. Much of education is focused on an insane, zero-sum race for finite rewards. Much of schooling does push kids, parents, schools, and school systems towards a solution ad absurdum, where anything less than 100 percent of kids headed to a doctorate and the big coding job in the sky is a sign of failure of everyone concerned.

But let’s approach this with an eye towards the limits of the possible and the reality of diminishing returns.

The real reason the left would support Moander: the usual reason. because he’s an enemy.

I have a problem in thinking about education, since my preferences and personal educational experience are atypical, so I can’t just gut it out. On the other hand, knowing that puts me ahead of a lot of people that seem convinced that all real people, including all Arab cabdrivers, think and feel just as they do.

One important fact, relevant to this review. I don’t like Caplan. I think he doesn’t understand – can’t understand – human nature, and although that sometimes confers a different and interesting perspective, it’s not a royal road to truth. Nor would I want to share a foxhole with him: I don’t trust him. So if I say that I agree with some parts of this book, you should believe me.


Caplan doesn’t talk about possible ways of improving knowledge acquisition and retention. Maybe he thinks that’s impossible, and he may be right, at least within a conventional universe of possibilities. That’s a bit outside of his thesis, anyhow. Me it interests.

He dismisses objections from educational psychologists who claim that studying a subject improves you in subtle ways even after you forget all of it. I too find that hard to believe. On the other hand, it looks to me as if poorly-digested fragments of information picked up in college have some effect on public policy later in life: it is no coincidence that most prominent people in public life (at a given moment) share a lot of the same ideas. People are vaguely remembering the same crap from the same sources, or related sources. It’s correlated crap, which has a much stronger effect than random crap.

These widespread new ideas are usually wrong. They come from somewhere – in part, from higher education. Along this line, Caplan thinks that college has only a weak ideological effect on students. I don’t believe he is correct. In part, this is because most people use a shifting standard: what’s liberal or conservative gets redefined over time. At any given time a population is roughly half left and half right – but the content of those labels changes a lot. There’s a shift.

I put it this way, a while ago: “When you think about it, falsehoods, stupid crap, make the best group identifiers, because anyone might agree with you when you’re obviously right. Signing up to clear nonsense is a better test of group loyalty. A true friend is with you when you’re wrong. Ideally, not just wrong, but barking mad, rolling around in your own vomit wrong.”
You just explained the Credo quia absurdum doctrine. I always wondered if it was nonsense. It is not.
Someone on twitter caught it first – got all the way to “sliding down the razor blade of life”. Which I explained is now called “transitioning”

What Catholics believe: https://theweek.com/articles/781925/what-catholics-believe
We believe all of these things, fantastical as they may sound, and we believe them for what we consider good reasons, well attested by history, consistent with the most exacting standards of logic. We will profess them in this place of wrath and tears until the extraordinary event referenced above, for which men and women have hoped and prayed for nearly 2,000 years, comes to pass.

According to Caplan, employers are looking for conformity, conscientiousness, and intelligence. They use completion of high school, or completion of college as a sign of conformity and conscientiousness. College certainly looks as if it’s mostly signaling, and it’s hugely expensive signaling, in terms of college costs and foregone earnings.

But inserting conformity into the merit function is tricky: things become important signals… because they’re important signals. Otherwise useful actions are contraindicated because they’re “not done”. For example, test scores convey useful information. They could help show that an applicant is smart even though he attended a mediocre school – the same role they play in college admissions. But employers seldom request test scores, and although applicants may provide them, few do. Caplan says ” The word on the street… [more]
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april 2017 by nhaliday
Is America smart enough? A Q&A with Garett Jones on IQ and the 'Hive Mind' - AEI | Pethokoukis Blog » AEIdeas
hmmm, shit:
Well, if we’re looking at the very recent trends over the last couple of decades, there is not much evidence that there’s been a bigger return to IQ than there used to be. I think there’s moderate evidence that there’s actually an increase in return to personality-type skills.

evidence: https://pinboard.in/u:nhaliday/b:d70bdc68a51c

One of my colleagues one said offhand a line that I think others have said, which is that 90% of success is staying off the Internet. And I think there’s something to this idea that the return to personality-type measures is probably a lot higher than it used to be. Agreeableness, conscientiousness, especially in certain settings. I’ve looked at the normal statistical results and they don’t find an increase in return to IQ in recent decades. But there’s a couple of studies out there that do find an increase in returns to what they call non-cognitive skills.

I think personality might be mattering more. If the robots are going to take some jobs, they’ll probably be taking a lot of brainy type jobs. But they’re going to be a little behind the times when it comes to personality. And a lot of in-person services are going to depend on personality traits.

So Google and its many spinoffs replace a lot of the need for crystallized intelligence. But the need for fluid intelligence is going to be with us for quite some time. The ability to look at a new, novel situation and figure out what’s going on here.

Some pro-IQ supporters, especially on the Internet, tend to think that there’s this some kind of cutoff where above a certain level IQ matters a lot. Below it, it doesn’t matter very much. And I just don’t find evidence of that. I think that there’s a reason why the market pays for IQ, for higher IQ across the range of the scores. It’s because it’s always good to have somebody around who can just look at an ambiguous situation and figure out what’s going on.

another neat comment:
I think the obsession with years of education really needs to end. And there should be an obsession with broad based test scores. If people don’t want to use IQ scores, that’s fine. But they should at least be looking at broad based test scores, things like the NAEPs, other test scores that the US government is quite happy to report on the Department of Education’s website. These should be the measures we look at. We should be looking a lot less at years of education.
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march 2017 by nhaliday
Our Demographic Decline - The Daily Beast
Hypothesis: to slow demographic/cultural transformation,no ideology will make any difference,only rich/powerful people having huge families.
You can keep one or two kids walled off from a decaying society,if you have enough money and connections. You can't do that with eight kids.
I don't worship Elon Musk,but it seems nonaccidental that only plutocrat with any kind of vital or inspiring vision of the future has 5 kids

Demographics, Robots, and AI | Elon Musk: https://www.youtube.com/watch?v=uA4ydDUsgJU
- TFRs about 50% of replacement throughout much of Europe. what's that gonna do to society?
- like the comment about people needing to develop a sense of duty to reproduce.

I think I think demographics is is a real issue where people are not having kids in a lot of countries and very often they'll say I'll solve it with immigration. Immigration from where?! If...Europe has an average of many plots...Europe have an average of of a 50 or six...you know they're only at fifty or sixty percent of what's needed for replacement or China for that matter they're at half replacement rate where exactly are we going to find six hundred million people to replace the ones that were never born. I think people are going to have to regard to some degree than the notion of having kids as almost a social duty. Within reason, I mean just if you can and you're so inclined you should, you should. You know it's like otherwise civilization will just die literally.

that's true of older generation of, eg, NYT writers but I think this new crop will just have fewer kids, be less hypocritical, more terrible

Many of the smartest people I know are quietly giving up on America. They don't see viable future. Very troubling.
They are choosing "exit" instead of voice. Abandoning politics. This takes many forms:
>denialism - tuning it out; moving to the country or gated community
>localism - rebuilding at local levels
>futurism - embracing tech to build the future
>nihilism - not voting; drugs
People point to American resilience throughout history. They view this period of time as different for a variety of reasons: debt, demographics, cultural decline, destructive technology, etc. Late-stage empire decline.

that netouyo__ comment (deleeted) about 'The Sopranos' and how the subtext was that we're at the end of America, not the beginning
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february 2017 by nhaliday

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