How The Digital Economy Has Exacerbated Inequality
News from INSEAD
“Income inequality has increased in most developed countries over the past three decades. The phenomenon has been felt much more in some countries than others, but the general trend is unmistakable. In the United States, the income share of the top 1% has soared from an average of 27 times more than the bottom 1% in the 1980s to 81 times more in 2014. The top one percent income share (of GDP) is now almost twice that of the bottom 50%.
“Technology has long been identified as one of the drivers of income inequality – together with globalization and other organizational and institutional factors. While research on the inequality impacts of technology has largely emphasised the effects of skilled-biased technological change (with large wage disparities between skilled and unskilled workers), a recent working paper from the National Bureau of Economic Research (NBER) explores a broader source of inequalities by focusing on the functioning of markets. Digital innovations may have contributed to magnifying market rents in more concentrated markets, which partly explains the increasing income share of top income groups (specifically top executives and shareholders) – compared to the majority of workers who have seen their wages stagnate since 1980, particularly the bottom 50%.”
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Rady School Hires Executive Director To Manage Business Analytics Program
News from UC-San Diego Rady School of Management
“Raymond Pettit, an accomplished advertising, media and marketing research expert, has joined the Rady School of Management at the University of California San Diego as the Executive Director of the Master of Science in Business Analytics (MSBA) program and the Center for Business Analytics. With 22 years of experience, Pettit has strong industry connections that will bring increased exposure to the MSBA program and enhance career options for MSBA students. Pettit joins the Rady School from comScore, Inc. where he served as VP, Analytics: Custom Client Solutions.
“’I am thrilled to be at Rady and ‘give back’ after a long career in business. I am confident I can bring value to what is already a stellar program and help propel Rady to a leadership role at the nexus of business analytics, education and industry,’ Pettit said.
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Darden Alum Serves Up Cold Brew Coffee On Tap, Biz Lessons On the Side
News from University of Virginia Darden School of Business
“About two years ago, one of Damian Warshall’s teammates on a Charlottesville softball team came to him with an idea.
“Now, that idea is being sold in kegs, cans and shops all over Virginia. And no, it’s not beer.
“Warshall, who graduated from the University of Virginia’s Darden School of Business in 2014; Paul Dierkes, the softball teammate; and Joel Artz started Snowing in Space, a Charlottesville-based coffee business known for its nitro cold brew coffee, in 2016.”
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MISTI and graduating MIT Sloan Master of Finance student Lukas Kamphausen working in the Middle East. MIT photo
Navigating Cultures While Making A Difference
News from MIT Sloan School of Management
“Lukas Kamphausen MFin ’18 recently graduated with a master of finance degree from MIT’s Sloan School of Management. Last January, he participated in MIT Sloan’s Israel Lab, organized in collaboration with the MIT International Science and Technology Initiatives (MISTI) MIT-Israel program. MISTI provides MIT students with high quality internship, research and teaching experiences in international companies, universities, research institutes, and high schools. While participating in the Israel Lab, Kamphausen took part in a hackathon organized by MISTI’s PeaceTech Initiative and Our Generation Speaks, a fellowship program and incubator, hosted at MassChallenge in Jerusalem. ‘I loved the Middle East so much and just had to come back in order to make an even larger impact for families living in this region,’ Kamphausen says.
“Currently, Kamphausen is doing an internship through MISTI at SunBox, a startup that sells affordable and self-installable solar energy systems to families living in the Gaza Strip. ‘This second experience in the region has really enabled me to get a deeper understanding both of how to work with people from very different backgrounds, and how as an MIT student I can make a real impact,’ Kamphausen says. ‘More than 2 million Gazans live with less than four hours of electricity a day. Hence, most families do not have refrigerators, access to the internet or lights at night. People can’t work, students can’t study, and entrepreneurs can’t run a business.'”
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