Abdul Latif Jameel Poverty Action Lab (J-PAL)

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      J-PAL North America announces five new partnerships with state and local governments

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      J-PAL North America, a research center in MIT’s Department of Economics, has announced five new partnerships with state and local governments across the United States after a call for proposals in early February. Over the next year, these partners will work with J-PAL North America’s State and Local Innovation Initiative to evaluate policy-relevant questions critical to alleviating poverty in the United States.

      J-PAL North America will work with the Colorado Department of Higher Education, Ohio’s Franklin County Department of Job and Family Services, the New Mexico Public Education Department, Puerto Rico’s Department of Economic Development and Commerce, and Oregon’s Jackson County Fire District 3. Each partner will leverage support from J-PAL North America to develop randomized evaluations, which have the potential to reveal widely applicable lessons about which programs and policies are most effective. 

      State and local leaders are vital stakeholders in developing rigorous evidence in order to understand which policies and programs work to reduce poverty, and why. By supporting each government partner in developing these five evaluation projects, the voice of policymakers and practitioners will remain a central part of the research process. Each of this year’s selected projects seeks to address policy concerns that have been identified by state and local governments in J-PAL North America’s State and Local Learning Agenda as key areas for addressing barriers to mobility from poverty, including environment, education, economic security, and housing stability. 

      One project looks to mitigate the emission of carbon co-pollutants, which cause disproportionately high rates of health problems among communities experiencing poverty. 

      Oregon’s Jackson County Fire District 3 will investigate the impact of subsidies on the uptake of wildfire risk reduction activities in a county severely affected by wildfires. “Wildfires have become more prevalent, longer lasting, and more destructive in Oregon and across the western United States. We also know that wildfire is disproportionately impacting our most vulnerable populations,” says Bob Horton, fire chief of Jackson County Fire District 3. “With technical support from JPAL North America’s staff and this grant funding, we will devise the most current and effective strategy, deeply rooted in the evidence, to drive the take-up of home-hardening behaviors — methods to increase a home’s resistance to fire — and lower the risk to homes when faced with wildfire.” 

      This project is in alignment with the priorities of J-PAL’s Environment, Energy, and Climate Change sector and its agenda for catalyzing more policy-relevant research on adaptation strategies. 

      Policymakers and researchers have also identified programs aimed at increasing opportunity within education as a key priority for evaluation. In partnering with J-PAL North America, the Colorado Department of Higher Education will assess the impact of My Colorado Journey, an online platform available to all Coloradans that provides information on education, training, and career pathways. 

      “As Colorado builds back stronger from the pandemic, we know that education and workforce development are at the center of Colorado’s recovery agenda,” shares Executive Director Angie Paccione of the Colorado Department of Education. “Platforms like My Colorado Journey are key to supporting the education, training, and workforce exploration of Coloradans of any age. With support from J-PAL North America, we can better understand how to effectively serve Coloradans, further enhance this vital platform, and continue to build a Colorado for all.”

      Similarly, the New Mexico Public Education Department proposes their intervention within the context of New Mexico’s community school state initiative. They will look at the impact of case management and cash transfers on students at risk of multiple school transfers throughout their education, which include children who are experiencing homelessness, migrant children, children in the foster care system, and military-connected children, among others. “New Mexico is delighted to partner with J-PAL North America to explore visionary pathways to success for highly mobile students,” says New Mexico Public Education Secretary (Designate) Kurt Steinhaus. “We look forward to implementing and testing innovative solutions, such as cash transfers, that can expand our current nationally recognized community schools strategy. Together, we aim to find solutions that meet the needs of highly mobile students and families who lack stable housing.”

      Another key priority for the intersection of policy and research is economic security — fostering upward mobility by providing individuals with resources to promote stable incomes and increase standards of living. By adjusting caseworker employment services to better align with local needs, Puerto Rico’s Department of Economic Development and Commerce (DEDC) looks to understand how individualized services can impact employment and earnings. 

      “The commitment of the government of Puerto Rico is to develop human resources to the highest quality standards,” says DEDC Secretary Cidre Miranda, whose statement was provided in Spanish and translated. “For the DEDC, it is fundamental to contribute to the development of initiatives like this one, because they have the objective of forging the future professionals that Puerto Rico requires and needs.” J-PAL North America’s partnership with DEDC has the potential to provide valuable lessons for other state and local programs also seeking to promote economic security. 

      Finally, Ohio’s Franklin County Department of Job and Family Services seeks to understand the impact of an eviction prevention workshop in a county with eviction rates that are higher than both the state and national average. “Stable housing should not be a luxury, but for far too many Franklin County families it has become one,” Deputy Franklin County Administrator Joy Bivens says. “We need to view our community’s affordable housing crisis through both a social determinants of health and racial equity lens. We are grateful for the opportunity to partner with J-PAL North America to ensure we are pursuing research-based interventions that, yes, address immediate housing needs, but also provide long-term stability so they can climb the economic ladder.”

      Franklin County Department of Job and Family Services’ evaluation aligns with policymaker and researcher interests to ensure safe and affordable housing. This partnership will have great potential to not only improve resources local to Franklin County, but, along with each of the other four agencies, can also provide a useful model for other government agencies facing similar challenges.For more information on state and local policy priorities, see J-PAL North America’s State and Local Learning Agenda. To learn more about the State and Local Innovation Initiative, please visit the Initiative webpage or contact Initiative Manager Louise Geraghty. More

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      The power of economics to explain and shape the world

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      Nobel Prize-winning economist Esther Duflo sympathizes with students who have no interest in her field. She was such a student herself — until an undergraduate research post gave her the chance to learn first-hand that economists address many of the major issues facing human and planetary well-being.“Most people have a wrong view of what economics is. They just see economists on television discussing what’s going to happen to the stock market,” says Duflo, the Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics. “But what people do in the field is very broad. Economists grapple with the real world and with the complexity that goes with it.”

      That’s why this year Duflo has teamed up with Professor Abhijit Banerjee to offer 14.009 (Economics and Society’s Greatest Problems), a first-year discovery subject — a class type designed to give undergraduates a low-pressure, high-impact way to explore a field. In this case, they are exploring the range of issues that economists engage with every day: the economic dimensions of climate change, international trade, racism, justice, education, poverty, health care, social preferences, and economic growth are just a few of the topics the class covers.“We think it’s pretty important that the first exposure to economics is via issues,” Duflo says. “If you first get exposed to economics via models, these models necessarily have to be very simplified, and then students get the idea that economics is a simplistic view of the world that can’t explain much.”Arguably, Duflo and Banerjee have been disproving that view throughout their careers. In 2003, the pair founded MIT’s Abdul Latif Jameel Poverty Action Lab, a leading antipoverty research network that provides scientific evidence on what methods actually work to alleviate poverty — which enables governments and nongovernmental organizations to implement truly effective programs and social policies. And, in 2019 they won the Nobel Prize in economics (together with Michael Kremer of the University of Chicago) for their innovative work applying laboratory-style randomized, controlled trials to research a wide range of topics implicated in global poverty.“Super cool”

      First-year Jean Billa, one of the students in 14.009, says, “Economics isn’t just about how money flows, but about how people react to certain events. That was an interesting discovery for me.”

      It’s also precisely the lesson Banerjee and Duflo hoped students would take away from 14.009, a class that centers on weekly in-person discussions of the professors’ recorded lectures — many of which align with chapters in Banerjee and Duflo’s book “Good Economics for Hard Times” (Public Affairs, 2019).Classes typically start with a poll in which the roughly 100 enrolled students can register their views on that week’s topic. Then, students get to discuss the issue, says senior Dina Atia, teaching assistant for the class. Noting that she finds it “super cool” that Nobelists are teaching MIT’s first-year students, Atia points out that both Duflo and Banerjee have also made themselves available to chat with students after class. “They’re definitely extending themselves,” she says.“We want the students to get excited about economics so they want to know more,” says Banerjee, the Ford Foundation International Professor of Economics, “because this is a field that can help us address some of the biggest problems society faces.” Using natural experiments to test theories

      Early in the term, for example, the topic was migration. In the lecture, Duflo points out that migration policies are often impacted by the fear that unskilled migrants will overwhelm a region, taking jobs from residents and demanding social services. Yet, migrant flows in normal years represent just 3 percent of the world population. “There is no flood. There is no vast movement of migrants,” she says.Duflo then explains that economists were able to learn a lot about migration thanks to a “natural experiment,” the Mariel boat lift. This 1980 event brought roughly 125,000 unskilled Cubans to Florida over a matter a months, enabling economists to study the impacts of a sudden wave of migration. Duflo says a look at real wages before and after the migration showed no significant impacts.“It was interesting to see that most theories about immigrants were not justified,” Billa says. “That was a real-life situation, and the results showed that even a massive wave of immigration didn’t change work in the city [Miami].”

      Question assumptions, find the facts in dataSince this is a broad survey course, there is always more to unpack. The goal, faculty say, is simply to help students understand the power of economics to explain and shape the world. “We are going so fast from topic to topic, I don’t expect them to retain all the information,” Duflo says. Instead, students are expected to gain an appreciation for a way of thinking. “Economics is about questioning everything — questioning assumptions you don’t even know are assumptions and being sophisticated about looking at data to uncover the facts.”To add impact, Duflo says she and Banerjee tie lessons to current events and dive more deeply into a few economic studies. One class, for example, focused on the unequal burden the Covid-19 pandemic has placed on different demographic groups and referenced research by Harvard University professor Marcella Alsan, who won a MacArthur Fellowship this fall for her work studying the impact of racism on health disparities.

      Duflo also revealed that at the beginning of the pandemic, she suspected that mistrust of the health-care system could prevent Black Americans from taking certain measures to protect themselves from the virus. What she discovered when she researched the topic, however, was that political considerations outweighed racial influences as a predictor of behavior. “The lesson for you is, it’s good to question your assumptions,” she told the class.“Students should ideally understand, by the end of class, why it’s important to ask questions and what they can teach us about the effectiveness of policy and economic theory,” Banerjee says. “We want people to discover the range of economics and to understand how economists look at problems.”

      Story by MIT SHASS CommunicationsEditorial and design director: Emily HiestandSenior writer: Kathryn O’Neill More