What has happened over the past 40 years in the United States, particularly in cities?
By Veronica Guerrieri – It is well known that the US has experienced a large increase in income inequality, which, in my view, is one of the biggest problems of the US economy. At the same time, there has been an increase in neighborhood segregation, especially in larger cities: the rich are more and more concentrated in rich neighborhoods and the poor in poor neighborhoods. Alessandra Fogli of the Federal Reserve Bank of Minneapolis and I document a strong correlation between inequality and residential segregation.
The data show that cities with more segregation have a bigger education gap between the children of rich and poor families—and have less intergenerational mobility, which measures how hard it is to become rich if your parents are poor. In rich neighborhoods, it’s easier for kids to get a good education, and the return on education is higher. There are better schools, parents invest more in after-school activities, and there are stronger peers. This means that segregation amplifies inequality. At the same time, inequality increases segregation because richer people are happy to pay more to live in better neighborhoods. more> https://goo.gl/Qxi1wD
Posted in Business, Economic development, Economy, Education, Leadership, Media
Tagged American Dream, Chicago Booth, Inequality, performance-enhancing drugs, Segregation, tradition, Venture Capital
How to split equity without drawing blood
By Mike Moyer – We live in a world where entrepreneurs and early-stage company participants get taken advantage of so frequently that we hardly notice. Bad equity deals are the rule, not the exception. Fairness is rare.
The intent for fairness is there in the way equity is split among business partners, but the practice of fairness is not. This is a correctable problem.
When a person contributes to a start-up company and does not get paid for her contribution, she is putting her contribution at risk with the hopes of getting a future reward. And, while the timing and the amount of the future reward is unknowable, the amount of the contributions at risk is knowable. It is equal to the fair market value of the contributions.
Because it’s impossible to know when or even if the rewards will ever come, we can never know how much people must put at risk to get the rewards. Every contribution, therefore, is essentially a bet on the future of the company, and nobody knows when the betting will end. more> https://goo.gl/F3ELyY
Posted in Business, Economic development, Economy, Education, History, Leadership, Media
Tagged Chicago Booth, culture, Finance, Inequality, Startup
Identify and rise above load-bearing assumptions
By Linda E. Ginzel – How could you build a really, really tall building without building really, really thick walls?
A man named William Le Baron Jenney came up with the answer. Jenney is widely recognized as the father of the American skyscraper, and according to Chicago lore, he had a breakthrough idea when he observed his wife placing a very heavy book on top of a tall metal birdcage. The cage not only supported the weight of the book, Jenney could see that it could have easily supported a whole stack of books. A stack of books piled high and balancing on a birdcage—what an image.
Jenney introduced the idea of a complete, steel skeleton, and he built the first fully metal-framed skyscraper in Chicago in 1884. Just as his wife used a birdcage to support the weight of a very big book, Jenney used metal columns and beams to support his building from the inside.
This story demonstrates the combined power of shedding a default assumption that weighed people down with making a major conceptual shift, which, in this case, provided architects the strength they needed to build higher.
Many of us face load-bearing assumptions, perhaps about management, strategy, finance, or leadership. For example, you may assume that the economic world is a zero-sum game.
Shedding assumptions is not an easy task because many have served you well in the past, and there is risk in abandoning them. Yet one of the most important skills that you can acquire is a willingness to question your load-bearing assumptions and make a different choice, when necessary. more> https://goo.gl/zR2hFR
Posted in Banking, Business, Economic development, Economy, Education, History, Leadership, Technology
Tagged Chicago Booth, Construction, Inner framework, Leadership, Load-bearing assumptions, Skyscraper
What happened to your goals?
By Alice G. Walton – The problem with big resolutions is that motivation tends to wane over time, says Chicago Booth’s Ayelet Fishbach, who studies motivation and decision making. People start out strong, but then reality sets in as they realize it’s easier to set goals than to carry them out.
Research by Fishbach and others can help people salvage failed goals, or achieve new ones.
Every endeavor has a starting point and an end point, which can be as specific as meeting a work deadline in one week or as general as losing weight. One reason many people fail to reach their objectives, says Fishbach, is that they tend to set goals that are difficult or even impossible to achieve, or too general. Making them more concrete and achievable—goals you can envision yourself completing—may yield better results.
Yet effective targets should be ambitious. As long as the goal is within reach, the more you expect from yourself, the more you’ll achieve, as people often respond to a challenge by working harder. more> https://goo.gl/drSWPY
Four ways to make hospitals more efficient
By Chana R. Schoenberger – Hospital patient records are being digitized, and financial, clinical, and outcomes data are piling up.
Medical devices attached to patients generate real-time information, as do health apps on patients’ own mobile phones and wearable devices such as Fitbits and Apple Watches.
All these data are enabling researchers to find and address inefficiencies in hospitals.
The end goal: help hospitals care for the sick while also being operationally and fiscally efficient.
As building and equipping a single hospital bed can cost $1 million, simply building more beds and hospitals is not a practical solution. Rather, strained hospitals have to use their existing resources more wisely. more> http://goo.gl/Rbnkba
Posted in Broadband, Economy, Education, Healthcare, How to, Net, Science, Technology
Tagged Broadband, Business improvement, Chicago Booth, Health, Hospital, Organization, Productivity