Indians in the US make the most because they studied the most

Education levels among those who identify as Indian are incredibly high: Roughly 76% of those above the age of 25 have graduated from college. For these ethnic groups, education explains most of the wage differences, since on average Indian, Japanese, and Chinese workers have higher levels of education than the rest of the labor force, education explains half to three-quarters of the observed wage gaps

Stock markets, when & why a drop is better than a rally

Stock markets, when & why a drop is better than a rally

Falling stock markets may stress out traders and threaten the bonuses of executives and professional investors. Even cool-headed portfolio managers can risk their jobs or reputations buying into a market crash.

But regular investors, especially those saving for retirement, have an advantage over the professionals. It’s not rocket science: They can afford to be patient. By buying in good times and bad, they benefit from gradually rising markets. And it’s the bad times that deliver the most oomph to their portfolios. By buying extra when stocks drop – as Werner did in 2008 and 2009 – they’re following the advice of a dozen Warren Buffett quotes, like: “Be fearful when others are greedy, and greedy when others are fearful.”

Modern CEOs live a homeless, lonely life. Life at the Top: Walking the Razor’s…..

Modern CEOs live a homeless, lonely life. The death of Total’s boss highlights the toll of a high-stress jet-setting lifestyle.

It’s like expecting physicians to work 50-hour shifts in the emergency room. Who can operate at the top of their game with this level of grueling travel?

The best way any CEO can explain his or her company’s strategy, values and the jobs people need to perform is to be in the room, in front of a lot of employees or other constituents. Nothing works as well as that personal presence, despite the personal toll that can take

WHY (and what) productivity matters

Economic growth has been fueled by two factors: the expanding pool of workers and their rising productivity. From the perspective of rising prosperity, however, it is productivity that makes all the difference. Disparities in GDP per capita among countries—or between the past and the present in the same country—primarily reflect differences in labor productivity. That in turn is the result of production and operational factors, technological advances, and managerial skills. As managers improve efficiency, invest, and innovate to be competitive, their collective actions expand the global economy.

While half-century forecasts are hazardous—particularly for the forecaster!—a productivity-based perspective on the future of growth suggests that a demographic slowdown today need not lead to economic stagnation tomorrow.

MGI’s 1993 study of manufacturing productivity debunked the then-popular notion that the Japanese and German economies had become more efficient than that of the United States

This same set of cross-country productivity comparisons also highlighted the ways in which operational factors, from scale to production processes, had a far greater influence on productivity than education, the usual suspect at the time. Moreover, MGI found that productivity was highest in industries and countries that are exposed to, rather than protected from, competition. The research also revealed a shadow side of Japan’s strong productivity in the automotive and consumer-electronics sectors: weak service-sector performance. Low productivity in the service sectors, which accounted for a growing majority of jobs, soon became the Achilles’ heel of Japan’s overall economic growth.

Many countries have advanced well past the productivity frontier established by the United States in 1964. But the frontier has advanced, too, leaving significant future catch-up opportunities.

Falling barriers to trade and foreign direct investment. MGI case studies show that countries and sectors can make rapid productivity gains when international barriers to trade and foreign direct investment fall

Regulatory changes that increase competition and performance pressure. These types of reforms, which occur within rather than across economies, are particularly important in local services

Pushing out the frontier will require a willingness to make significant changes in business processes and organizational structures, as well as trade-offs between mature businesses with healthy cash flows, on the one hand, and disruptive (often digital) business models, on the other, with the potential for self-cannibalization even as they offer a transformative productivity potential. Another transformative opportunity, in many countries, continues to be the status of women, whose greater employment could alter the demographic equation and boost growth independently of productivity advances

The soul of MATH … Everything About The Way We Teach Math Is Wrong

The soul of MATH … Everything About The Way We Teach Math Is Wrong

An abstract memorization and formal-method-based “music” education closely resembles the “math” education that most students receive. Formulas and algorithms are delivered with no context or motivation, with students made to simply memorize and apply them.