Inequality in America: What Role for Human Capital Policies? (Alvin Hansen Symposium on Public Policy at Harvard University) Review

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Inequality in America: What Role for Human Capital Policies (Alvin Hansen Symposium on Public Policy at Harvard University) ReviewThis conversation/debate between two of the country's most distinguished economists focuses on one of the central questions in the design of social policy: How should government invest its resources in order to generate the biggest returns to the society? Should it focus mainly on very young children or should it underwrite a broad array of programs, from prenatal care through job training programs?
"Inequality in America" isn't for everyone--the use of statistical analyses and technical language will scare off some readers--but for the policy wonk, broadly construed, this is essential reading. (Even the non-wonk who is willing to do some hard intellectual work can learn a great deal.)The book is structured, not as a "two ships passing in the night" pair of arguments but rather as a series of point-counterpoint discussions; the authors offer no-holds-barred criticisms of one another's arguments, sometimes in acidic language (with commentators adding additional perspectives). This structure adds considerably to its value, for readers are provided with enough evidence and analysis to reach an informed conclusion.
My intellectual preferences generally run to the ethnographic rather than the economic, to contextualized narratives/cases rather than number-crunching, to work more readily accessible to a broader audience. But this is a powerful exception: I learned more from "Inequality in America" than from anything I've read in a long time.
Inequality in America: What Role for Human Capital Policies (Alvin Hansen Symposium on Public Policy at Harvard University) OverviewThe surge of inequality in income and wealth in the United States overthe past twenty-five years has reversed the steady progress toward greater equalitythat had been underway throughout most of the twentieth century. This economicdevelopment has defied historical patterns and surprised many economists, producingvigorous debate. Inequality in America: What Role for Human Capital Policies?examines the ways in which human capital policies can address this importantproblem. Taking it as a given that potentially low-income workers would benefit frommore human capital in the form of market skills and education, James Heckman andAlan Krueger discuss which policies would be most effective in providing it: shouldwe devote more resources to the entire public school system, or to specializedprograms like Head Start? Would relaxing credit restraints encourage more studentsto attend college? Does vocational training actually work? What is the best balanceof private and public sector programs?The book preserves the character of thesymposium at which the papers were originally presented, recreating its atmosphereof lively debate. It begins with separate arguments by Krueger and Heckman (writingwith Pedro Carneiro), which are followed by comments from other economists. Kruegerand Heckman and Carneiro then offer separate responses to the comments and finalrejoinders.

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