Pitchfork Economics with Nick Hanauer

Economics Needs More Socioeconomic Diversity (with Anna Stansbury)

Sep 17, 2024

In this enlightening discussion, MIT economist Anna Stansbury, known for her focus on labor economics and wage inequality, dives into the troubling lack of socioeconomic diversity within the economics profession. Stansbury reveals how this homogeneity stifles innovative economic solutions and perpetuates social inequalities. They discuss barriers that marginalized groups face in accessing economics education and the biases of neoliberal frameworks that undermine equitable growth. The conversation emphasizes the pressing need for diverse perspectives to better address the realities of lower-income individuals.

37:37

Episode guests

Anna Stansbury

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Episode notes

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Quick takeaways

The significant lack of socioeconomic diversity in economics hinders the profession's ability to address complex social issues effectively.

Emphasizing middle-out economics highlights the importance of a strong middle class in fostering overall economic prosperity for all societal segments.

Deep dives

Middle-Out Economics as a Solution

The concept of middle-out economics is advocated as a remedy for rising inequality and political instability, asserting that a thriving middle class is crucial for overall economic prosperity. Rather than an economy that favors the wealthy at the top, this approach posits that building from the bottom up and the middle out leads to benefits for all societal segments, including the affluent. This philosophy emphasizes that Wall Street did not solely construct the nation's economy; the hardworking middle class played a vital role in this development. As the middle class strengthens, positive ripple effects in economic performance are anticipated for everyone, irrespective of wealth status.

Intro

2min

Addressing Socioeconomic Diversity in Economics

3min

Diversity Gaps in Economics Education

4min

The Bias of Neoliberal Economics and Its Impact on Socioeconomic Diversity

2min

Bridging the Gap: Socioeconomic Diversity in Economics

23min

The Consequences of Socioeconomic Homogeneity in Economics

3min

This week, Nick and Goldy are joined by MIT economist Anna Stansbury to discuss the troubling lack of socioeconomic diversity within the economics profession. Stansbury discusses her research from a paper she co-authored with Robert Schultz titled “The Economics Profession’s Socioeconomic Diversity Problem”, which reveals that a strikingly low percentage of economists come from less-advantaged backgrounds. They have a thoughtful discussion about how that lack of diversity affects the profession's ability to address issues of power, inequality, and social problems, and they highlight the need for more diverse perspectives in the profession to ensure a more inclusive and equitable approach to economic analysis. They also point out that diversifying the field is not just a matter of equity but is crucial for fostering innovative solutions to economic challenges.

Anna Stansbury is an economist and Assistant Professor of Work and Organization Studies at MIT Sloan School of Management. She is also a nonresident senior fellow at the Peterson Institute for International Economics. Her research primarily focuses on labor economics, with a particular emphasis on wage inequality, labor market power, and the dynamics of worker power within organizations. She recently co-authored a paper with Robert Schutls, “Socioeconomic Diversity of Economics Ph.Ds,” published by the Journal of Economic Perspectives.

Twitter: @annastansbury

Further reading: Socioeconomic Diversity of Economics PhDs

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