Papers

In this proposal, Richard Arum and Mitchell Stevens propose twin federal government initiatives to incentivize innovation in instructional delivery throughout the national postsecondary ecology, to bridge the divide between academia and the workforce system, and to accrete a cumulative science of adult learning.

The COVID-19 pandemic poses an existential threat to small businesses, with more than 400,000 lost since the crisis began. Many small businesses are financially fragile and not equipped to weather a prolonged period of substantially reduced revenues. In this proposal, Steven Hamilton of The George Washington University calls for a significant expansion of refundable tax credits to help support small businesses through this crisis.

A Hamilton Project proposal by Lisa Larrimore Ouellette and Heidi Williams of Stanford University offers several reforms to the U.S. patent system. Improving the effectiveness of the patent system can catalyze technological innovation, a key driver of long-term economic and productivity growth.

John Van Reenen of MIT and the Sloan School of Management proposes an ambitious Grand Innovation Challenge Fund that would increase U.S. investment in research and development (R&D). The fund will give a much-needed boost to innovation and productivity and tackle some of the most important challenges of our age. 

The United States spends a larger share of its GDP on health care than any other advanced economy. This high private sector health-care spending in the United States is driven mostly by higher prices, with little evidence to suggest that high prices reflect better quality of care. In this proposal, Michael Chernew, Leemore Dafny, and Maximilian Pany discuss how price regulations could be used to constrain commercial provider prices in an efficient manner.

U.S. health-care spending on administrative costs far exceeds the amount necessary to deliver effective health care. David Cutler proposes several reforms to reduce administrative health-care costs and improve satisfaction for both patients and providers.    

Martin Gaynor of Carnegie Mellon University describes the substantial consolidation that has occurred in health-care markets, showing that it is has generally resulted in higher prices without gains in quality or other improvements. Gaynor proposes three types of policy reforms that would increase competition in health care and improve market functioning.

One driver of high inequality and low intergenerational mobility is the inefficient and inequitable way that inheritances are currently taxed. In this proposal, Lily Batchelder describes reforms that would raise revenue and put inherited income on a more level playing field with income earned from work.  

The United States has high levels of income and wealth inequality, in part because of shortcomings in how we tax concentrated income and wealth. To raise revenue and more effectively tax income from wealth, Greg Leiserson explores several key design considerations and discusses four potential approaches to wealth taxation. 

The federal government requires more funding to sustain economic growth and opportunity, and raising such funds may require new sources of tax revenue. In this proposal, Antonio Weiss and Laura Kawano propose a financial transaction tax that would raise substantial revenue (largely from high earners) without hindering market functioning. 

Retirement and health-care commitments necessitate steadily rising spending at a time when the federal government is already missing other opportunities to make valuable public investments. William Gale proposes a value-added tax—paired with a refundable credit to all households—in order to raise revenue in an efficient and progressive manner. 

A proposal by Kimberly Clausing offers near-term and fundamental reforms to improve the taxation of multinational companies. Formulary apportionment would raise substantial new revenue without harming U.S. competitiveness.  

A proposal by Jason Furman offers several reforms to the corporate tax code to improve the tax base and increase tax rates. This combination makes it possible to increase growth, well-being, and revenue.  

In the coming decades, federal spending will need to grow just to enable the government to continue to provide the services it does today. Natasha Sarin, Lawrence Summers, and Joe Kupferberg propose a suite of tax reforms that will raise revenue by broadening the tax base and strengthening tax enforcement. 

Because industrial sectors contribute a large fraction of total greenhouse gas emissions in the United States, addressing their emissions is an essential element of combating climate change. In this paper, Carolyn Fischer of Resources for the Future proposes using tradable performance standards to reduce industrial carbon emissions.

In this paper, David Popp points out that despite the recent progress made in clean technology innovation, much remains to be done in order to decarbonize our economy. He describes the evidence on different public policy approaches to spurring more clean energy innovation. Grounded in that evidence, Popp provides a set of guidelines for how best to target energy R&D investments and deploy innovations.  

If a robust carbon price is successfully implemented, other regulations that target carbon emissions may become redundant, less effective, or more expensive. Roberton Williams puts forward proposals to suspend or modify current climate policies that will become unnecessary or inefficient after a sufficiently high carbon price is implemented.

Consumer spending, which makes up about 70 percent of aggregate expenditures in the economy, slows sharply during recessions. This slowdown can exacerbate employment losses and reduced production, making a recession even worse. Claudia Sahm proposes automatic direct payments to individuals to support consumer spending when the national unemployment rate rapidly rises. 

In the face of large declines in tax revenues and increased demand for state programs during and after recessions, state governments are often forced to raise taxes, cut programs, or both. In order to protect state Medicaid programs and counteract recessions, Matthew Fiedler, Jason Furman, and Wilson Powell III propose to automatically increase the federal share of expenditures under Medicaid and the Children’s Health Insurance Program when a state’s unemployment rate exceeds a threshold level.

Transportation infrastructure investment during economic downturns often occurs too slowly—and in insufficient quantities—to help stabilize the economy. Andrew Haughwout of the Federal Reserve Bank of New York proposes a modification of the BUILD grant program that would automatically fund additional transportation infrastructure investments during recessions.

Low recipiency rates and an imperfect Extended Benefits program weaken the unemployment insurance program’s effectiveness during recessions. Gabriel Chodorow-Reich and John Coglianese propose five reforms to strengthen the automatic stabilization functions of the unemployment insurance system.

The design of the Temporary Assistance for Needy Families (TANF) program prevents it from providing sufficient assistance to families with children during economic downturns and from serving as an effective stabilizer. In order to help TANF better deliver on both these fronts, Indivar Dutta-Gupta proposes ways to change the funding, design, and administration of the program.

The Supplemental Nutrition Assistance Program (SNAP) is both an effective antipoverty program and a natural automatic stabilizer, expanding when the economy is weak and contracting when it is strong. Hilary Hoynes of the University of California, Berkeley and Diane Whitmore Schanzenbach of Northwestern University present reforms to strengthen SNAP’s countercyclical effects.

The use of monetary sanctions to punish crimes ranging from minor traffic or public order offenses to the most serious felonies is ubiquitous in the United States. Nationally, millions of people hold billions of dollars of criminal debt from past monetary sanctions, much of which is regarded as uncollectible because of the limited financial resources of the debtors. In this paper, Beth Colgan of the University of California, Los Angeles School of Law describes the harms associated with unmanageable monetary sanctions as well as the evidence from day-fines pilot projects. Colgan builds on this evidence to propose a system for graduating sanctions according to ability to pay.

On any given day, there are roughly half a million individuals in custody awaiting trial in the United States, nearly double that of any other country. This high rate of pretrial detention has contributed to concerns regarding the effectiveness and constitutionality of the current bail system. In this paper, Will Dobbie of Princeton University and Crystal Yang of Harvard Law School propose two broad sets of policy proposals that can both reduce our nation’s reliance on pretrial detention and improve pretrial decisions.

In this paper Michael Makowsky of Clemson University describes how the reliance of local governments on fees, fines, and asset forfeiture for revenue generation shapes law enforcement activities. Makowsky proposes a set of reforms that would decouple the revenue collection from the public safety objectives of law enforcement. Breaking this link would realign the criminal justice system with its traditional public safety goals.

Policymakers at the state and local levels tackle some of the toughest problems facing society. To make measurable progress in solving these problems, public policy needs to be effective, efficient, and evidence based. Justine Hastings of Brown University draws on her experiences founding Research Improving People’s Lives (RIPL), a nonprofit research–policy partnership in Rhode Island that aims to make state policy more fact based and more effective through the creation of an integrated database of state administrative data and derived tables. She provides best practices for creating the database and using it effectively to derive policy insights.

High regional inequality is driven, in part, by local land-use regulations that prevent low- and middle-income workers from accessing high-productivity places. In this paper, Daniel Shoag of Harvard Kennedy School and Case Western Reserve University discusses the problems with current housing policies and their effects on economic growth and mobility. To remove these barriers, the author outlines local, state, and federal policy initiatives that can boost housing supply in booming parts of the country.

There is broad agreement about the importance of transportation infrastructure, but disagreement about the goals of transportation policy and the appropriate means to achieve these goals. In this paper, Matthew Turner of Brown University examines the current state of U.S. infrastructure and discusses different reforms that focus on improving both access to opportunity and the efficiency of the highway and bus transit systems.

Many place-based policies have been unsuccessful, failing to deliver cost-effective benefits to disadvantaged communities; meanwhile areas across the county have large and rising concentration of poverty. David Neumark proposes that the federal government subsidize employment in places that are struggling, focusing on nonprofit jobs that contribute to local public goods. 

The $700 billion U.S. intergovernmental grant system is often poorly targeted to areas that are struggling. Tracy Gordon proposes reforms to Medicaid and other programs that would make federal aid to states more targeted toward struggling areas and more responsive to economic shocks.   

Given the growth of the knowledge-based economy as well as the role universities play in high-productivity clusters, many policymakers have discussed the role of new universities in helping stimulate growth. In this policy proposal, E. Jason Baron, Shawn Kantor, and Alexander Whalley instead argue for the expansion of the Manufacturing Extension Partnership program to help more communities benefit from knowledge spillovers generated by existing universities. 

Development economics research has made substantial progress in addressing poverty, poor health and education, and other problems of struggling areas. In this paper, Stephen C. Smith relates findings from the development economics literature to U.S. policy problems, highlighting programs and policies that have the potential to assist lagging areas in the United States.

Users contribute information to many digital platforms. Regulators have recognized that when such data cannot be easily moved between platforms, this may lock those users in to incumbents and prevent innovative competitors from emerging. Gans argues that the same type of barriers exists with respect to networks of users. Users who move between platforms could lose the benefits of communications within their social network. He proposes to generalize data portability to a broader notion of identity portability whereby messages between verified connections can flow between platforms, thereby mitigating these broader switching costs and promoting competition.

State business incentives tilt the economic playing field in favor of large, incumbent firms and thereby discourage economic dynamism. However, basic collective action problems prevent any state from unilaterally eliminating these incentives, as businesses would migrate to states that continued to provide incentives. Chatterji proposes a federal Main Street Fund that would encourage states to redirect incentive payments towards initiatives that support new businesses and economic dynamism. These initiatives include management training for new entrepreneurs, increased occupational licensing reciprocity, investment in broadband infrastructure, and customized initiatives to support the creation and success of new businesses.

High levels of U.S. health-care spending and inadequate health outcomes make it vital for policymakers to explore opportunities for enhancing productivity in the health-care sector. However, the potential for these gains is sharply limited by anticompetitive policy barriers in the form of restrictive scope of practice laws imposed on physician assistants and advanced practice registered nurses. Adams and Markowitz examine evidence on the impacts of these restrictions, concluding that states should move to fully authorized scope of practice for these practitioners. The authors explore state and federal policies that could help facilitate this shift.

For most of the period since the 1970s the United States has suffered from two trends: stagnant wages for most workers and rising inequality. In this paper, Heidi Shierholz focuses on the erosion of labor standards, institutions, and norms that has reduced the bargaining power of low- and moderate-wage workers. She proposes a suite of remedies to help strengthen worker bargaining power and increase wages.

One of the challenges of wage stagnation is asymmetric information, whereby employers have a greater knowledge of the distribution of wages relative to workers. This asymmetry of information is potentially suppressing wage growth as it limits workers’ ability and inclination to negotiate for higher pay. In this paper, Ben Harris advances a five-part proposal to improve wage transparency as a strategy for improving worker bargaining power, and ultimately, raising wages across the income distribution.

Labor market collusion or monopsonization—the exercise of employer market power in labor markets—may contribute to wage stagnation, rising inequality, and declining productivity in the American economy, trends which have hit low-income workers especially hard. To address these problems, Alan Krueger and Eric Posner propose three policy reforms.

Firms use non-competes widely in order to minimize recruiting costs, safeguard investments, and protect intellectual property more easily than is achieved via non-disclosure agreements. But these benefits come at a cost to workers, whose career flexibility is compromised—often without their informed consent. In this paper, Matt Marx describes evidence from empirical research on non-compete agreements and recommends policies to balance the interests of firms and workers.  

By conventional measures, the U.S. job market has suffered some degree of slack for about 70 percent of the time since 1980. The absence of persistent, strong labor market demand has a significant negative impact on wages and incomes, with these costs falling disproportionately on the least advantaged. In this paper, Jared Bernstein offers a four-part proposal to increase labor demand along with earnings and employment opportunities.

Geography is an important part of economic opportunity—but due to monetary and nonmonetary costs of migration, college attendance is less likely for those who live farther from postsecondary institutions. The college educated have also become increasingly concentrated in larger labor markets, while at the same time mobility across markets is falling. Wozniak proposes two modifications to the existing Federal Student Aid programs to level the playing field on these dimensions. 

Lifetime incomes have stagnated significantly since the 1960s, with young workers earning less than the previous generation early in their careers, resulting in lower lifetime incomes. These trends coincided with a stagnation of educational attainment for men, as well as rising income disparities among workers with some college experience. In light of these facts, this paper presents policy proposals that aim to boost wage growth for younger workers.

There is general agreement that the U.S. Patent and Trademark Office issues too many invalid patents—those patents issued on an existing technology or on an obvious technological advancement—that are unnecessarily reducing consumer welfare, stunting productive research, and discouraging innovation. To address this, Frakes and Wasserman build upon new empirical evidence to propose three changes to the patent system that would reduce the issuance of invalid patents.

Despite progress toward a cleaner energy system, current U.S. policies appear insufficient to reduce emissions enough to avoid catastrophic climate change while sustaining economic growth. Energy innovation is a crucial part of addressing this problem, but a number of inefficiencies persist in the innovation system. To address this, Goldstein, Azoulay, Graff Zivin, and Bulović examine practices and institutions that successfully support the pharmaceutical innovation system and that hold important lessons for energy innovation.

Women now make up almost half the U.S. workforce, and more than half of the U.S. population. Despite the central role women play in the economy, our labor laws and institutions do little to address the various ways in which women are held back at work. This not only hampers women’s economic well-being, but also has implications for U.S. productivity, labor force participation, and economic growth. In this paper, Ansel and Boushey propose policies aimed at boosting women’s economic outcomes: paid family leave, fair scheduling, and combatting wage discrimination. They show how enacting carefully designed policies will better address the challenges of today’s labor force, enhance women’s economic outcomes, and provide benefits for the national economy.

The rapid growth of the older population in the United States will dramatically increase the need for elder care, most of which will be provided at home by family members. Supporting an older person sometimes comes at the cost of leaving the labor force, particularly for caregivers in jobs with an inflexible work schedule. This paper proposes a federal earned sick leave mandate guaranteeing one hour of flexible, multi-purpose sick leave for every 30 hours worked. By helping workers periodically adjust their work schedules to accommodate intermittent and urgent caregiving activities, paid sick leave would increase both home caregiving and employment, as fewer workers would be forced to choose between these activities. 

Women have surpassed men in college enrollment. This trend is particularly pronounced among nontraditional students, including part-time and older students—two groups that face significant challenges in higher education. For the 4.8 million college students who are parents, high-quality, reliable, and affordable child care is essential. Long proposes building on the Child Care Access Means Parents in School (CCAMPIS) Program to structure an institutional grant program that better supports the availability of high-quality child care for parents pursuing postsecondary credentials (student-parents). Compared with the existing federal program, the proposed program would be larger and better targeted to address the substantial needs of low-income student-parents.

Child care is a necessity for working women with young children. However, the costs of high-quality center-based child care in the United States—particularly for children under age five—are prohibitively high for many families. In this proposal, Elizabeth Cascio describes a multifaceted approach to child-care policy that reduces the financial burden of child care, encourages maternal employment, and supports child development. The proposal would replace existing federal child-care tax policies with a single refundable federal child-care tax credit that is more generous to lower-income families and families with children under the age of five. To address child care quality, Cascio proposes investments in Quality Rating and Improvement Systems and in expansion of universal preschool for four-year-olds. State and local governments could pursue these investments on their own or with federal assistance.

Despite widespread public support for paid parental leave, the United States is the only industrialized country without a national policy providing mothers with rights to paid leave following the birth of a child. Ruhm proposes a national paid leave program that entitles both mothers and fathers to 12 weeks of paid time off work. The proposal includes job protection during the leave, broad eligibility, and income-tiered wage replacement rates. The program would be financed by general revenues and administered by a new office established within the Social Security Administration, with program evaluation scheduled three to five years after initial implementation.

Popular commentary often points to the lower lifetime earnings and longer expected life spans of women relative to men as a reason to be especially concerned about the economic risks women face as they age. Indeed, women aged 65 and older are twice as likely as their male counterparts to live in poverty. Disability and widowhood are major drivers of economic insecurity for women later in life. To reduce the risk of economic insecurity among older women, the authors propose to allow Social Security beneficiaries to forgo some benefits when claiming to finance greater benefits in the event of widowhood, disability, or both. The proposed changes would be voluntary and self-financing.

Ordinarily, the progressive income tax system acts to mitigate differences in before-tax earnings. However, the tax treatment of married couples tends to raise the tax rate faced by the spouse who is the lower earner in a couple. This group of spouses, often referred to as secondary earners, is still predominantly female. Consequently, the current tax treatment of married couples reduces wives’ labor force participation and creates other inefficiencies. LaLumia proposes a new second-earner deduction equal to 15 percent of the earnings of a lower-earning spouse. The proposed deduction would raise the after-tax return to work for many wives, encouraging an increase in married women’s labor supply, and would reduce marriage penalties on average.

The Earned Income Tax Credit (EITC) is a refundable tax credit that promotes work. Despite the strong evidence for the effectiveness of the EITC and recent bipartisan expansions, the maximum EITC has been frozen in inflation-adjusted terms for most families since 1996, so the 25 million EITC families with fewer than three children have not seen a real increase in more than 20 years. The authors propose to build on the successes of the EITC with a ten percent across-the-board increase in the federal credit. This expansion would provide a meaningful offset to stagnating real wages, encourage more people to enter employment, lift approximately 600,000 individuals out of poverty, and improve health and education outcomes for millions of children.

In this proposal, the author shows that many students who perform at or below average in high school are not prepared for college and do not attain postsecondary degrees or high-value certificates. The author proposes a set of policies and practices, informed by his multimethod evaluation of the Florida College and Career Initiative (FCCRI), that would improve college and career outcomes at relatively low cost.

While there is a popular perception of a national teacher shortage, the authors demonstrate that teacher shortages are in fact localized and subject-specific. Teacher hiring and retention are often difficult for schools that serve low-income students as well as in particular fields like STEM and special education. The authors propose complementary strategies that K-12 school districts, teacher education programs, and regulatory authorities can use to address these shortages.

Currently, Pell Grants are designed to meet the needs of recent high school graduates. In this proposal, Turner explores the possibility of better tailoring Pell Grant eligibility and needs assessment to the circumstances of the adult unemployed. In addition to improving Pell access for these individuals, facilitating better matches between unemployment insurance recipients and post-secondary programs has the potential to enhance long-term labor market outcomes, which Turner proposes to carefully evaluate. 

In this paper, the authors propose a risk-sharing system for the student loan program. Institutions with low repayment rates, as measured by a new cohort-based repayment metric, would be asked to pay a fee in proportion to the degree to which they miss repayment rate targets. This fee is intended to be a nudge to encourage institutions to improve matching between students and programs, program quality, completion, and other factors that relate to repayment outcomes.

The federal government largely invests in higher education through aid to students that aims to lower the effective price of college. However, Deming finds that increases in institutional spending per-pupil are particularly important for increasing degree completion. Based on this work, Deming proposes a federal matching grant for spending by public institutions in states that implement free college proposals. The proposal would give states an incentive to rein in college costs while maintaining or increasing spending levels in the core spending categories of instruction and academic support.

In this paper, Greenstone, Sunstein and Ori propose two major steps towards simplifying fuel efficiency standards and refocusing the program on achieving guaranteed emissions reductions at lower cost to automakers. First, they propose targeting greenhouse gas (GHG) emissions directly, without differentiating by vehicle types and sizes, using data to project a given vehicle’s lifetime greenhouse gas emissions. Second they recommend establishing a robust cap-and-trade market to reduce compliance costs for automakers while providing considerably more certainty about the future path of carbon dioxide emissions. 

This paper proposes three complementary policies for enhancing urban resilience to new climate risk. The first focuses on improving key urban infrastructure. The second addresses the urban poor, who are the most vulnerable in the face of climate change risks. The third proposal aims to reduce the cost of adaptation through better-functioning markets, and to allow prices of natural resources, energy, and coastal insurance to reflect true conditions.

Over the past two decades Democratic and Republican administrations have taken steps to reduce U.S. carbon-dioxide emissions by reducing use of fossil fuels. Despite growing public attention to the climate consequences of fossil fuel extraction, U.S. climate policy so far has not extended to the government’s role as a major source of fossil fuels. Kenneth Gillingham and James Stock propose to incorporate climate considerations into federal coal leasing by placing a royalty adder on federal coal that is linked to the climate damages from its combustion. A royalty adder set to 20 percent of the social cost of carbon would reduce total power sector emissions, raise the price of federal coal to align it with coal mined on private land, increase coal mining employment in Appalachia and the Midwest, and provide additional government revenues to help coal communities.

Individuals who were formerly incarcerated often face great difficulty in re-entering the labor market after incarceration. A multi-pronged approach—inclusive of effective policies aimed at building workers’ skills, communicating their work-readiness to employers, and promoting robust labor markets for low-skilled workers—is necessary for improving employment outcomes for workers with criminal records. In addition, it is important to consider the potential unintended consequences of regulations that restrict information available to employers.

Over the past 30 years, both the incarcerated population and the limitations placed on those with criminal records have dramatically expanded. The consequences of a criminal conviction can last long beyond any imposed sentence, but current efforts to reduce the punitiveness of the criminal justice system tend to focus on sentencing reform rather than consequences for those who have already served prison terms. The author offers three principles for reform efforts aimed at reducing criminal justice punitiveness.

High recidivism rates—some 50 percent of released prisoners return within three years—constitute a major factor driving both high crime rates and high incarceration rates. The unduly sudden process of prisoner release contributes to recidivism by confronting releasees with unnecessarily difficult problems of subsistence and adjustment. Graduated Reintegration addresses that problem by making the release process less sudden. 

The experience of the Great Recession reveals important holes in the safety net. In particular, the central cash-assistance program in the United States, Temporary Assistance for Needy Families (TANF), is failing to reach many poor families. In addition, the program does not automatically expand during economic downturns, when the need for the program is likely greatest and when additional consumer spending would be particularly helpful. To strengthen TANF, Marianne Bitler and Hilary Hoynes propose reforms to expand both the program’s reach and its responsiveness to cyclical downturns. They also propose ways to improve its transparency, which will help researchers and policymakers understand how the program works, who it supports, and how effectively it meets its goals. 

The Supplemental Nutrition Assistance Program (SNAP) provides assistance to households that lack food security, with benefit allotments determined by the USDA’s Thrifty Food Plan (TFP). However, the assumptions underlying the TFP are based on increasingly unrealistic assumptions about food preferences, time availability, and prices faced by many SNAP recipients. As a result, SNAP is less effective than it could be. In this Hamilton Project paper, James Ziliak proposes a series of reforms to the TFP aimed at strengthening nutrition assistance. 

In the years following the Great Recession, many economists and policymakers agree that fiscal stimulus was crucial to turning around the faltering economy and helped to save or create millions of jobs. What economists and policymakers do not agree on is whether the stimulus should have been larger, whether it contained the correct mix of tax cuts and targeted government spending, and how it could have best been delivered. In this Hamilton Project policy proposal, Alan Blinder tackles these questions using economic theory and recent evidence from the Great Recession to discuss how fiscal policy can be better designed to mitigate the effects of the next economic downturn.

Innovations in technology hold great promise for application in education, and yet new educational technologies have yet to fundamentally advance student outcomes in K-12. In this policy memo, authors Aaron Chatterji and Benjamin Jones argue that the lack of rigorous evaluation currently available for educational technology tools must be addressed and articulate general principles that should guide the evaluation of educational technology. These evaluations have the promise to fill in critical information gaps and leverage the potential of new technologies to improve learning. They also present a case study of a new platform, EDUSTAR, conceived by the authors and implemented with a national nonprofit organization.

Title I of the Elementary and Secondary Education Act distributes over $14 billion in federal funds to school districts to help disadvantaged students. Over its 50-year history, the aid formulas have become more complex, and the perceived restrictions on permissible uses of the funds have limited the ways that schools use the additional resources. The program is widely perceived as funding ineffective practices at the local level, and spreading federal funds too thinly. Gordon proposes reforms to make the Title I formula more transparent, streamlined and progressive by distributing additional resources to the neediest areas. In addition, she suggests improvements in federal guidance and fiscal compliance outreach efforts so that local districts understand the flexibility they have to spend the resources effectively. 

Improving the educational outcomes of economically disadvantaged children is a policy priority in the United States, and yet relatively little progress has been made in recent decades. To address this issue, Roseanna Ander, Jonathan Guryan and Jens Ludwig propose scaling up a daily, individualized tutorial program that would allow students who have fallen behind grade level in math to reengage with regular classroom instruction, likely increasing their chances of graduating high school and achieving the many long-term economic benefits that go along with academic success.

The rise of technological intermediaries enabling workers to engage in the gig economy has resulted in protracted legal battles over whether to classify these workers as “employees” or “independent contractors.” Seth Harris and Alan Krueger propose assigning benefits and protections to independent workers according to whether or not the new benefits meet three certain considerations, and seek to address several growing issues in the labor market.

Substantial evidence shows that consumers often lack the high-quality information to select the best insurance plan, and once they have selected a plan they are less likely to switch, even as better plans become available. In response, Ben Handel and Jonathan Kolstad propose that exchanges develop a personalized decision support tool to give consumers the information they need to select the best plan. Additionally, they propose that exchanges establish a system of smart defaults, where an algorithm is used to move consumers to new plans if those plans deliver more value. 

Substantial evidence shows that consumers often lack the high-quality information to select the best insurance plan, and once they have selected a plan they are less likely to switch, even as better plans become available. In response, David Dranove, Craig Garthwaite and Christopher Ody propose that exchanges develop a personalized decision support tool to give consumers the information they need to select the best plan. Additionally, they propose that exchanges establish a system of smart defaults, where an algorithm is used to move consumers to new plans if those plans deliver more value. 

When Americans select health insurance, they cannot choose what technologies and treatments to include in their coverage. The fact that Americans have little choice but to buy widely-inclusive coverage sends a distorted signal to medical technology developers—that society is willing to pay practically any price for treatments that offer only incremental health benefits over existing technology. Nicholas Bagley, Amitabh Chandra and Austin Frakt propose three reforms to make health insurance, and ultimately medical innovation, reflect what consumers value.

Workers rely more than ever on individually directed retirement savings vehicles, such as defined-contribution plans and IRAs, to provide the income necessary for a comfortable retirement. John Friedman proposes combining the various types of retirement accounts into a single Universal Retirement Saving Account and instituting tax credits for businesses that encourage workers to save. 

Americans currently spend over $300 billion a year on long-term services and supports (LTSS), paid for through government programs, private insurance, and importantly, individuals’ own out-of-pocket spending. Wesley Yin proposes changes to the financing of long-term care (LTC) insurance so that individuals can have more-affordable and more-complete insurance against long-term services and supports (LTSS) expenses, and so insurance firms can manage their risks more efficiently.

The nation’s transportation infrastructure, it is widely agreed, is eroding and in need of long-term, innovative policy solutions and adequate investment. In this discussion paper, Roger Altman, Aaron Klein, and Alan Krueger propose improvement and expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA) lending program, reauthorization of Build America Bonds, better utilization of the Army Corps of Engineers and the Harbor Maintenance Trust Fund, and reform of the federal gas tax.

The United States has an enviable entrepreneurial culture and a track record of building new companies.Yet women and minority entrepreneurs often face even greater obstacles. In this discussion paper, Michael Barr calls for an expanded State Small Business Credit Initiative and an enlarged and permanent New Markets Tax Credit to encourage private sector investment in new and small businesses.

Helping unemployed workers return to work has long been a policy challenge in the United States, and the urgency of the problem tends to increase during and after economic downturns. In this paper, Adriana Kugler offers three pilot programs to reform the unemployment system by encouraging different ways to return to work. The first program would allow the unemployed to continue claiming benefits while receiving entrepreneurial training and other assistance for setting up a business. The second program would support the unemployed through temporary positions and internships that might lead to full-time jobs. The third program would provide partial benefits to claimants who accept part-time jobs.

Evidence suggests that occupational licensing has had an important influence on wage determination, benefits, employment, and prices in ways that impose net costs on society with little improvement to service quality, health, and safety. To improve occupational licensing practices, Morris Kleiner proposes four specific reforms.

In the face of a severe drought in the West, new approaches are required to mitigate the risk of water shortages. In this Hamilton Project paper, Peter Culp, Robert Glennon and Gary Libecap present five proposals to encourage the use of market mechanisms to increase flexibility and resiliency in water management.

The United States’ aging water infrastructure will be increasingly strained by population growth, economic expansion, and the effects of climate change. In this Hamilton Project paper, Newsha K. Ajami, Barton H. Thompson, Jr., and David G. Victor suggest that solutions to the country’s growing water challenges lie, in part, with the development and adoption of new innovative technologies. The authors present three policy and regulation recommendations to facilitate greater innovation in the water sector.

In this Hamilton Project discussion paper, Christopher Costello of the University of California, Santa Barbara proposes that certain fisheries conduct an analysis of alternative fishery management structures, including different forms of catch shares, to improve the economic value of U.S. fisheries.

In this policy memo, Scott Cody and Andrew Asher propose that federal, state, and local agencies conduct thorough needs assessments to determine if predictive analytics and rapid-cycle evaluation can be used to improve the delivery of social services programs. This proposal aims to provide more effective services for individuals living in poverty by targeting services appropriately, and by identifying effective program improvements. This proposal is chapter fourteen of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.

In this policy memo, Arindrajit Dube proposes that state and local governments consider median wages and local costs when setting minimum wages, index the minimum wage for inflation, and engage in regional wage setting. This proposal aims to raise the earnings of low-wage workers with minimal negative impacts on employment. This proposal is chapter thirteen of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.

In this policy memo, Katharine G. Abraham and Susan N. Houseman propose that the federal government subsidize state work-sharing payments during economic downturns, make work sharing a requirement for state unemployment insurance systems, change federal requirements to modify provisions of state work-sharing plans that may discourage employer participation, and provide states with adequate funding to administer work-sharing programs. This proposal, targeted at workers who would otherwise become unemployed during cyclical downturns, aims to reduce the number of layoffs during economic downturns. This proposal is chapter twelve of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.

In this policy memo, Hilary Hoynes proposes expanding the Earned Income Tax Credit (EITC) by raising the benefits for families with one child to be on par with the benefits for families with two children. This proposal aims to strengthen work incentives for low-income, one-child families; raise 410,000 people—including 131,000 children—out of poverty; and increase after-tax income by about $1,000 for one-child EITC beneficiaries, leading to improvements in health and children’s cognitive skills. This proposal is chapter eleven of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.

In this policy memo, Sheena McConnell, Irma Perez-Johnson, and Jillian Berk offer proposals to help disadvantaged adult workers with the skills necessary to succeed in the labor market. The authors call for an increase in funding in the Workforce Investment Act Adult program. They also propose a series of four steps that state and local workforce boards can take to better assist disadvantaged adult workers in obtaining skills. This proposal is chapter nine of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Building Skills.

In this policy memo, Harry J. Holzer proposes the creation of financial incentives for public colleges and university systems to offer classes in high-return fields and for employers to offer more training to their employees. This proposal, targeted at disadvantaged youth who have some academic preparation for higher education, aims to generate better labor market outcomes and wage gains. This proposal is chapter eight of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Building Skills.

In this policy memo, Robert I. Lerman proposes a series of targeted federal and state-level initiatives to expand access to registered apprenticeship programs by creating marketing initiatives, building on existing youth apprenticeship programs, extending the use of federal subsidies, and designating occupational standards. This proposal, targeted toward at-risk youth and middle-skill adults in low-wage jobs, aims to improve human capital and raise earnings for apprentices. This proposal is chapter seven of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Building Skills.

In this policy memo, Bridget Terry Long proposes that school districts, community colleges, university systems, and state and federal governments reform the college remediation system by improving placement in remediation classes, providing better remediation services, and adopting measures to prevent the need for remediation. This proposal, targeted at disadvantaged, academically underprepared students in high school and college, aims to reduce the need for college-level remediation and to better match underprepared students with effective resources to equip them with the skills they need to succeed in college and in the workforce. This proposal is chapter six of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Supporting Disadvantaged Youth.

In this policy memo, Amy Ellen Schwartz and Jacob Leos-Urbel propose that the U.S. Department of Labor distribute federal grants to states for municipalities to provide summer employment to disadvantaged youth, first through a pilot program and then through a nationwide expansion. This proposal, targeted at low-income youth who are enrolled in or have recently graduated from high school, aims to increase school attendance, improve educational outcomes, and reduce violent behavior and crime. This proposal is chapter five of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Supporting Disadvantaged Youth.

In this policy memo, Phillip B. Levine proposes that nongovernmental organizations—including nonprofits, foundations, and charitable organizations—as well as private-sector entities expand community-based mentoring programs, such as the Big Brothers Big Sisters program, in accordance with a set of best practices. This proposal, targeted at disadvantaged youth who have few or no adult role models in their lives, aims to improve educational and labor market outcomes for disadvantaged youth. This proposal is chapter four of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Supporting Disadvantaged Youth.

In this policy memo, Isabel Sawhill and Joanna Venator propose that the U.S. Department of Health and Human Services’ Office of Population Affairs, in conjunction with state governments, reduce unintended pregnancies through a social marketing campaign to encourage more young women to use long-acting reversible contraceptives (LARCs). This proposal, targeted at unmarried women between the ages of 15 and 30, aims to expand awareness so more low-income women use a LARC or other method of contraception, thereby reducing the number of unintended pregnancies and lowering the number of children born into poverty. This proposal is chapter three of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Promoting Early Childhood Development.

In this policy memo, Ariel Kalil proposes that the U.S. Department of Health and Human Services’ Administration for Children and Families create a task force supporting the collection of evidence to develop more-effective parenting interventions and to promote improved child development in early years. This proposal, targeted at low-income families with young children, will collect evidence on successful parenting interventions for young children through rigorous experiments, and will develop new interventions that are lower-cost and better-matched to families’ needs. This proposal is chapter two of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Promoting Early Childhood Development.

In this policy memo, Elizabeth U. Cascio and Diane Whitmore Schanzenbach propose a framework for state and local governments calling for the establishment of high-quality programs in areas where preschool programs do not exist, improved preschool quality in states and localities with subpar programs, and expanded access in areas where high-quality programs already exist. This proposal aims to reduce the income-based gap in school readiness between disadvantaged and higher-income preschool-aged children, and to improve school outcomes for disadvantaged preschool children. This proposal is chapter one of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Promoting Early Childhood Development.

The introduction to The Hamilton Project’s new volume, Policies to Address Poverty in America, presents an overview of America’s poverty crisis, and makes the case for why poverty belongs on the national policy agenda. The introduction also frames the 14 policy proposals that are part of the volume, and the particular aspects of poverty they address. The proposals fall into four general categories: promoting early childhood development, supporting disadvantaged youth, building skills, and improving safety net and work support.

In this policy memo, James P. Ziliak proposes converting the federal Child and Dependent Care Credit from a nonrefundable tax credit to a refundable one, capping eligibility at $70,000 and making the credit a progressive function of income, child age, and use of licensed care facilities. This proposal, targeted at low- and middle-income families with children under the age of twelve, aims to increase labor force participation, disposable income, and the use of higher-quality child care. This proposal is chapter ten of The Hamilton Project’s Policies to Address Poverty in America, and a segment in Improving Safety Net and Work Support.

A growing body of research in psychology and behavioral economics suggests that a great deal of everyone’s behavior happens intuitively and automatically, with little deliberate thought. In this paper, Jens Ludwig and Anuj Shah propose a five-year strategy for scaling out behaviorally informed interventions—such as the "Becoming a Man" (BAM) program —to help disadvantaged youths recognize high-stakes situations in which their automatic responses could be maladaptive and may lead to trouble.

The United States incarcerates people at a higher rate than any other country in the world. Large increases in the U.S. incarceration rate over the past three decades have decreased crime but generated substantial costs. In this paper, Steven Raphael and Michael Stoll propose reforms that would reduce incarceration while maintaining a low crime rate.

In a new Hamilton Project Discussion Paper, J. Pierre de Vries and Philip J. Weiser propose further reforms to move spectrum regulation away from its “command-and-control” regime to allow for a more-efficient allocation of spectrum resources. De Vries and Weiser propose three distinct but complementary lines of reform.

The Supplemental Nutrition Assistance Program (SNAP)—formerly known as the Food Stamp Program—is an essential part of America’s social safety net. Diane Schanzenbach proposes five reforms that could strengthen SNAP, including incentives for participants to purchase healthier foods and improvements to the benefit formula.

The current tax system hampers low- and middle-income families who add secondary earners to the workforce to augment their primary breadwinner’s income. In a new Hamilton Project discussion paper, Melissa Kearney and Lesley Turner propose a secondary earner tax deduction that would help make work pay for dual-earner families.

The lack of clear information about the widening gap in perceived and actual costs of college can act as an impediment in students' decision-making process. In his new Hamilton Project proposal, Phillip Levine proposes a way to simplify and improve the transparency of college cost estimates based on a pilot program currently underway at Wellesley College.

The current federal student lending system requires students to repay loans during the first decade after college, when their incomes are relatively low and variable. The University of Michigan's Susan Dynarski and Daniel Kreisman propose a strategy to improve student lending through the adoption of an income-contingent repayment plan.

The structure of the Pell Grant program has remained fundamentally unchanged since its inception in 1972. In this paper, Sandy Baum of the Urban Institute and The George Washington University and Judith Scott-Clayton of Columbia University propose three major structural reforms to fit the needs of a twenty-first-century economy and student population.

Caroline Hoxby of Stanford University and Sarah Turner of the University of Virginia present a strategy for improving college outcomes for high-achieving, low-income students. Building on previous research showing that most high-achieving, low-income students do not even apply to selective colleges, Hoxby and Turner propose expanding a recently piloted informational intervention called the Expanding College Opportunities (ECO) Project.

Workforce training programs have the potential to improve the lives and incomes of millions of Americans by lifting many into the middle class and preventing others from falling out of it. Despite their promise, however, too many workers enroll in courses that they do not complete or complete courses that do not lead to better jobs, reducing the benefits to workers and the economic return to workforce investments. Louis Jacobson of New Horizons Economic Research and Robert LaLonde of the University of Chicago propose a competition to increase the return on training investments by developing the data and measures necessary to provide the information prospective trainees need, by presenting the information in user-friendly “report cards,” by providing help for prospective trainees to use the information effectively, and by creating incentives for states to implement permanent information systems once they prove cost-effective.

Over the past decade, and particularly over the past five years, new government strategies have begun to emerge—at the federal, state, and local levels—that offer the potential of simultaneously making better use of taxpayer dollars and speeding up progress in addressing serious social problems. Jeffrey Liebman of Harvard University discusses several of these strategies and outlines five steps that policymakers can take to better inform their work with evidence. He also proposes a grant competition that identifies and encourages innovation in ten social policy priority areas as well as federal support for state and local Pay for Success initiatives.

Changes in the government’s role in housing finance could contribute to budget savings. Phillip Swagel’s proposal to increase the role of private capital in housing finance improves incentives for risk taking and investment, reduces taxpayer exposure to risk, and fosters competition and innovation in housing finance.

David Conrad and Ed Thomas explore how the National Flood Insurance Program and other federal disaster relief programs could be reformed to better align the costs and benefits of living in disaster-prone areas and help put the budget on more sound footing. This proposal aims to reduce budget costs of natural disasters and reduce risk to life and property of Americans living in disaster-prone areas.

Jeffrey Liebman and Jack Smalligan propose a path to improve our disability insurance system, through demonstration projects and administrative changes, that could potentially increase employment and economic engagement among workers with disabilities and provide more rapid and reliable resolution of disability insurance claims for those who cannot work.

Creating a value-added tax (VAT) in the United States could raise revenue in a manner that does not distort saving and investment choices. William Gale and Ben Harris consider how a VAT could be designed to help address the nation’s fiscal challenges.

Adele Morris proposes a carbon tax as a new source of revenue that could also help address climate change. She suggests that a carbon tax would reduce the buildup of greenhouse gasses, replace command-and-control regulations and expensive subsidies with transparent and powerful market-based incentives, and promote economic activity through reduced regulatory burden and lower marginal tax rates.

Diane Lim’s approach to individual income tax expenditures would raise revenue more efficiently and progressively by reducing tax expenditures, limiting potential negative impacts on subsidized sectors by preserving certain tax incentives, and equalizing implicit subsidies across middle- and higher-income taxpayers.

Slowing the rate of health care spending growth will likely require transitioning away from a fee-for-service system to a global payment system. Michael Chernew and Dana Goldman propose policies to promote efficiency in the Medicare program by providing incentives to treat disease rather than paying for individual services in a way that encourages improvements to the quality of care.

Karen Dynan examines the design of government incentives for personal savings, outlining how reforms to these programs would improve saving and economic security for low-income households and reduce expensive and ineffective federal subsidies for high-income households.

Investments in infrastructure are essential for a vital economy. Tyler Duvall and Jack Basso suggest looking to user fees as a way to raise revenues, reduce congestion on major roadways, reduce pollution, and promote wiser infrastructure investments.

Limiting subsidies for fossil fuels could raise revenue for the federal government while also benefiting the environment. Joseph Aldy proposes eliminating twelve subsidies to help level the playing field among fossil fuel producers relative to other businesses, and lead to potentially lower global fuel prices by providing the United States with increased leverage in negotiations over eliminating fossil fuel subsides in the developing world.

Tax reform discussions often center on tax expenditures. Alan Viard proposes to replace the mortgage interest deduction with a refundable credit as a way to reduce the artificial incentive for the construction of high-end homes by better targeting the tax breaks for housing.

Cost sharing under the Medicare Parts A & B programs is both variable and uncapped, with an overall structure that is hard to rationalize. Jonathan Gruber proposes reforms to Medicare cost sharing that insures consumers against high out-of-pocket costs, aligns the costs faced by consumers with the actual cost of care, and discourages incentives in private plans that encourage excess use of Medicare benefits.

As policymakers work to find solutions to reduce the federal budget deficit, The Hamilton Project presents 15 pragmatic, evidenced-based proposals that would both reduce the deficit and also bring broader economic benefits from leading experts from a variety of backgrounds.

In response to likely cuts to the defense budget, Gary Roughead and Kori Schake propose restructuring the force to improve the military’s ability to respond to modern challenges, making military procurement of assets more efficient and competitive, and creating benefits packages more in line with troops’ preferences.

Cindy Williams proposes measures for sustaining a strong military while reducing future annual defense expenditures, mainly through addressing growing internal costs in the defense budget and reshaping military forces in a way that reduces future budgets while preserving strong and ready military capabilities.

Pia Orrenius, Giovanni Peri, and Madeline Zavodny present a strategy to change the U.S. employment-based immigration system to make the system more efficient, increase the economic benefits of immigration and raise revenues by using market-based auctions to allocate visas.

Philip Oreopoulos of the University of Toronto presents a strategy for reducing the dropout rate through a carrot-and-stick approach starts with raising the compulsory schooling age to 18, and also combines stricter and better-enforced school-attendance laws with programs that have been statistically proven to prevent disengagement among at-risk students.

Education technologies hold promise for personalized learning and for building basic skills, but a fundamental obstacle remains: the effectiveness of learning technologies is rarely known. Building on the Common Core State Standards and increasing access to broadband internet, Aaron K. Chatterji of Duke University and Benjamin Jones of Northwestern University propose the establishment of a new third-party ratings organization to overcome this challenge.

Because many successful charter schools represent a radical departure from traditional public schools, they often embody a black box to educational reformers. Roland Fryer of Harvard demonstrates how preliminary results in Houston and Denver public schools provide a path forward for applying effective charter school methods in traditional public schools.

To ensure funds are available for clean-up when natural gas accidents occur, Lucas Davis of UC Berkeley explores new approaches to bonding requirements for producers, including increasing federal minimum bond amounts and encouraging states to adopt similar minimum bond amounts for drilling on non-federal land.

Domestic natural gas is both cleaner and more affordable than oil, making it an attractive and practical alternative. In a new Hamilton Project paper, Christopher R. Knittel of MIT proposes a series of steps to promote natural gas in transportation.

Michael Levi of the Council on Foreign Relations poses a framework for regulators to determine if exporting natural gas is in the public interest, arguing the upsides of exports outweigh the costs as long as the government acts to mitigate risk.

Giovanni Peri of UC Davis proposes a practical set of immigration reforms, starting with market-based changes to employment-based visas to better link visas with the labor market and ending with broad simplification in many areas of policy.

Less educated workers often experience prolonged periods of unemployment and stagnating wages because they lack the skills necessary to compete in a global economy. In a new Hamilton Project paper, Harry J. Holzer proposes a set of competitive grants to fund education, training, and career counseling initiatives that feature private sector connections based on the experience of existing successful workforce development programs.

After being displaced from long-tenured jobs, workers often experience persistent, significant earnings losses. New research suggests that retraining in certain “high-return” fields can substantially reduce these losses. In a new Hamilton Project paper, Louis S. Jacobson, Robert J. LaLonde and Daniel G. Sullivan propose the establishment of a Displaced Worker Training (DWT) Program to distribute grants to displaced workers so they can obtain longer-term training to substantially increase their earnings. The DWT Program would also leverage the nation’s One-Stop Career Centers to assess and counsel grantees.

Recent incentive programs demonstrate that well-designed rewards to students can improve student achievement at relatively low costs. Bradley M. Allan and Roland G. Fryer draw on field experiments to propose a set of guidelines to design a successful education incentive program. Those guidelines include paying students to perform tasks that will lead to better academic performance rather than paying them for grades and test scores alone.

While education reform is often focused on dramatic changes, Brian A. Jacob and Jonah E. Rockoff suggest that implementing managerial reforms and making sure the “trains run on time” can substantially increase student learning at modest cost. Jacob and Rockoff propose three organizational reforms to improve student performance at moderate cost: 1) Starting school later in the day for middle and high school students; 2) Shifting from separate to elementary and middle schools to K-8; 3) allow teachers to teach the same grade level for multiple years or having teachers specializing in the subject where they appear most effective.

In recent years, efforts to hold teachers and schools accountable for student test scores have increased as part of an attempt to increase student achievement by raising teacher effectiveness and bringing up the performance of low-performing schools. Derek Neal proposes improved assessments and accountability systems through two distinct examinations: one traditional test to track educational achievement over time, and a new examination to evaluate teacher performance.

Ted Gayer proposes three reforms addressing several problems that undermine the role played by cost-benefit analysis in environmental regulation: 1) agencies should use a check list of good empirical practices for using cost-benefit analysis; 2) regulators should presume that consumers can make their own energy-saving decisions and focus on regulations addressing harm people impose on others; and 3) a six-month, early regulatory review process should be established for particularly important regulations.

John M. Deutch proposes a series of best practices for government support of U.S. technology demonstration and a new institution, the Energy Technology Corporation, that would be responsible for managing and selecting technology demonstration projects.

Joseph E. Aldy proposes a national clean energy standard that would lower carbon dioxide emissions by as much as 60 percent relative to 2005 levels over twenty years, streamline the fragmented regulatory system that is currently in place, generate fiscal benefits, and help fund energy innovation.

Eduardo Engel, Ronald Fischer, and Alexander Galetovic propose a series of best practices for state and local governments to follow when using public–private partnerships to provide infrastructure.

Matthew Kahn and David Levinson propose a reorganization of our national highway infrastructure priorities to preserve, maintain, and enhance existing infrastructure and the creation of the Federal Highway Bank to meet these goals.

Andrew Ang and Richard Green propose the establishment of CommonMuni, a not-for-profit advisory firm designed to reduce borrowing costs for municipalities by overcoming the difficulty individual municipalities and investors have coordinating with one another.

Potential students and their families must navigate a labyrinth of incomplete and uncertain information when deciding where to go to college, what to study, or what career to pursue, resulting in an array of poor choices being made every day. This proposal calls for the federal government to expand the types of information that are available and allow users to compare indicators like cost, financial aid, student debt, employment outcomes, and average salaries following graduation, across peer institutions.

The Social Security Disability Insurance (SSDI) program has failed to support the ongoing employment and economic self-sufficiency of workers with disabilities, leading to rapid growth in program expenditures and declining employment of Americans with disabilities. This proposal offers a blueprint for reversing this needless employment decline and stemming the dramatic growth of the SSDI program.

The U.S. corporate tax system introduced more than 100 years ago has not kept pace with changes to the economy. The growing role of financial innovation and the increasingly global nature of U.S. corporate operations are chief among these changes, necessitating reform. This paper proposes two reforms to the U.S. corporate tax system.

This paper proposes the creation of a “mobility bank” at a government cost of less than $1 billion per year to help finance the residential moves of U.S. workers relocating either to take offered jobs or to search for work, and to help them learn more about the employment options available in other parts of the country.

This paper proposes three solutions to bring jobs to distressed areas: customized job training programs for businesses and employees, advice and consulting services through the Manufacturing Extension Partnership program, and a package of grants for local services and tax breaks through a reformed and revitalized Empowerment Zone program.

Robert LaLonde of the University of Chicago and Daniel Sullivan of the Federal Reserve Bank of Chicago suggest that retraining through our nation’s community colleges is a way to reduce the skills gaps of at least some of these displaced workers and increase their reemployment earnings.

This paper analyzes the U.S. labor market over the past three decades and finds employment polarization on the rise as job opportunities decline in middle-skill occupations, resulting in a sharp increase in wage inequality.

Comparative effectiveness research must assess a comprehensive array of health-related outcomes for diverse patient groups. This paper explores a variety of issues surrounding the implementation of CER.

This paper explores the role that One-Stop Career Centers play in helping the unemployed build new skills and find new jobs, and proposes new measures to expand One-Stop Capacity to help more workers.

The Hamilton Project held a policy forum and released a discussion paper by Rebecca Blank and Mark Greenberg on the need for a new national poverty measure that better reflects the actual economic conditions of low-income Americans.

Two market problems in addressing climate change are lack of private incentive to reduce greenhouse gas emissions and underinvestment by industry in R&D. This proposal addresses these issues through permanent R&D tax credits and support for research institutions.

This paper proposes a national prisoner reentry program whose core element is up to a year of transitional employment available to all parolees in need of work.

This paper develops a new framework for understanding the mortgage markets based on behavioral economic insights and proposes a ‘sticky’ opt-out mortgage system.

Edgar Olsen examines shortfalls with the current system of low-income housing assistance and proposes a transition to an entitlement housing assistance program that relies exclusively on tenant-based assistance.

This paper argues that development of shared appreciation mortgage (SAM) markets in the United States would moderate the impending decline in homeownership and lower the risk of future housing crashes.

Dorothy Robyn argues that there are fundamental problems with the way the federal government manages the air traffic control system and proposes policy changes to improve the system’s safety and reliability.

Jon M. Peha outlines policies through which government could facilitate the expansion of broadband infrastructure into unserved communities. He argues that these policy reforms would move America closer to the goal of universal access to broadband Internet.

This paper argues that the current lump-sum pricing of auto insurance is inefficient and inequitable. It proposes and evaluates a simple alternative: pay-as-you-drive (PAYD) auto insurance.

Philip J. Weiser argues that our spectrum policy has failed to facilitate an optimal and efficient use of this important resource. He identifies a new direction for spectrum policy reform to catalyze more efficient uses of spectrum.

David Lewis argues that congestion pricing would reduce the economic costs from congestion and guide transportation resources to their best use, and would generate revenue for new investment and to compensate low-income people for whom toll payments are burdensome.

Catastrophe insurance helps spread risks and increases the ability of policyholders and the economy to recover from both natural disasters and terrorist attacks. This paper discusses several policy options to finance losses from catastrophic risk.

This paper proposes a policy that would increase the role of lifetime income products in future retirees’ overall retirement planning.

Akash Deep and Robert Z. Lawrence propose an affordable federal instrument that could mitigate the adverse impact of tax-revenue shocks on communities by allowing them to buy tax-base insurance.

Although the federal government dedicated nearly $40 billion to funding student loans in 2006, only 60 percent of potential students from low-income families attend college, compared with 90 percent from high-income families. This paper argues that enrollment rates are lower than they could be because potential students undervalue loan subsidies, which are delivered after graduation instead of up front when a student enrolls and incurs costs.

Without government action, mortgage foreclosures will rise steeply for the next several years, argues Doug Elmendorf. He analyzes the wide range of proposals for tackling this problem, arguing that policy-makers should weigh the fairness of alternative approaches and effects on future mortgage credit, as well as the consequences of inaction.

The New Hope program was designed to assist workers by providing work supports including access to quality child care and health insurance. This paper evaluates the program and provides recommendations for scaling it up nationally.

This paper proposes a new federal funding stream to identify, expand, and replicate the most successful state and local initiatives designed to spur the advancement of low-wage workers in the United States.

This paper proposes increasing the return to work for low-income families through the expansion the earned income tax credit for low-income childless taxpayers and the creation of a targeted wage subsidy in certain economically depressed areas.

This paper lays out the arguments for using cap-and-trade to address climate change and proposes a system that includes an upstream cap on CO2, a gradual downward trajectory of emissions ceilings over time, and mechanisms to reduce cost uncertainty.

This paper describes a carbon tax swap that is revenue and distributionally neutral. The tax swap levies a tax on greenhouse gas emissions with revenue being used to fund a reduction in the income tax, tied to earned income.

This paper outlines a model for Medicare Part E(everyone), a program to provide universal, continuous, and affordable health insurance. This proposal adopts Medicare rules and payment systems to provide enrollees the same benefits that current Medicare beneficiaries receive.

Jonathan Gruber discusses issues surrounding universal healthcare coverage and the uninsured and lays out a plan at the national level which builds on the Massachusetts model.

Ezekiel Emanuel and Victor Fuchs discuss a Universal Healthcare Voucher System, which would achieve universal health coverage by entitling all Americans to a standard package of benefits comparable to that received by federal employees.

This paper argues that the current system of taxing multinational firms generates tax distortions. It proposes a new system that would protect the U.S. tax base while alleviating problems created by the current system.

Lily Batchelder proposes replacing the estate tax with an inheritance tax. She argues that this tax would lower taxes on heirs receiving smaller inheritances and those with moderate incomes.

In this paper, Edward D. Kleinbard introduces the Business Enterprise Income Tax (BEIT), a proposal for reforming business income taxation. He argues that the BEIT would achieve comprehensive and consistent taxation of capital income.

For most working-age families, health insurance is directly connected to the workplace; but this form of coverage is steadily eroding. This paper outlines three key steps necessary to achieve a gradual transformation without disrupting successful parts of the system.

One important contribution to the challenges facing healthcare today is the increased insulation of Americans from the cost of care. To address this issue, this paper proposes a template for a progressive cost sharing plan.

Chronic and preventable diseases now account for most of the deaths and costs in the healthcare system, despite relatively low-tech and low-cost services that could limit them. This paper outlines a new agency to deliver preventive care.

This paper proposes a series of reforms to address the challenges facing Medicare’s Part D prescription drug benefit. These reforms include creating a standardized set of plans, increasing competition, and lowering prices paid for drugs.

The absence of a quality early education for many disadvantaged children represents an extraordinary waste of human potential. This paper outlines a model for helping such children achieve success through an intensive early education program.

This paper analyzes the federal student aid system and finds that the level of complexity makes it ineffective at increasing college enrollment. The paper then outlines a simplified system to address this issue.

Thomas Kalil proposes expanding the US government’s use of prizes and Advanced Market Commitments to stimulate technological innovation in space exploration, African agriculture, vaccines for diseases of the poor, energy and climate change, and learning technologies.

Doug Lichtman discusses the limitations of the current patent review system and proposes policy reforms that would correct for these issues.

Richard Freeman discusses the National Science Foundation fellowship policy. He argues that current U.S. NSF fellowship policy gives less of an incentive for students to enter science and engineering than in earlier periods.

In the past three decades, American families have faced a dramatic increase in economic risk. This paper responds to this rise by proposing a broad-based, stop-loss insurance program designed to help families weather economic shocks.

The current system of unemployment insurance has not been updated since 1935 and is in need of reform to meet the needs of today’s workforce. This paper outlines three broad reforms to update the unemployment insurance system.

This paper describes a proposal to restructure social insurance after job loss in order to improve protection against long-term effects of unemployment, provide more progressive allocation of benefits, reduce incentives for firms to lay off workers, and encourage reemployment.

In this paper, Austan Goolsbee proposes phasing in a simple program known as the "Simple Return," that would allow the U.S. government to take advantage of the country’s information technology gains to lighten the tax compliance burden on an estimated 40 percent of American taxpayers.

Even in early grades, a large skill gap exists between students from economically advantaged and disadvantaged families. This paper outlines a program based on evidence from studies of summer programs which will provide scholarships for economically disadvantaged children.

This paper outlines a program of federal support to help states measure the effectiveness of individual teachers. Teachers who receive good evaluations would be offered bonuses if they were willing to teach in high-poverty schools.

Many middle- and low-income Americans retire without having accumulated sufficient savings to enjoy a comfortable retirement. This paper proposes changing the default features of retirement savings and creating new matching programs to incentivize people to save.