106-109 Missing Brides: The discussion of the consequences of China’s gender imbalance draws from Avraham Ebenstein and Ethan Jennings, “The Consequences of the Missing Girls of China,” World Bank Economic Review, Vol. 23, No. 3, November 2009, pp. 399-425; “China Faces Growing Sex Imbalance,” BBC News, 01/11/2010 (at news.bbc.co.uk/2/hi/asia-pacific/8451289.stm, accessed 07/18/2010); Shang-Jin Wei and Xiaobo Zhang, “The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China,” NBER Working Paper, June 2009. The analysis of the positive influence of women on development in China and Taiwan draws from “Women and Men in China, Facts and Figures, 2004,” Department of Population, Social Science, and Technology, National Bureau of Statistics, China, April 2004; Zhang Ye, “Hope for China’s Migrant Women Workers,” China Business Review, April 2002; Nancy Qian, “Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance,” CEPR Discussion Paper, December 2006; and Andrew M. Frances, “Sex Ratios and the Red Dragon: Using the Chinese Communist Revolution to Explore the Effect of the Sex Ratio on Women and Children in Taiwan,” Emory University Working Paper, November 2008.
110-114 The Price of Work: Data on labor coercion are found in International Labor Organization, “The Cost of Coercion,” Report of the Director General, International Labour Conference, 2009. Data on the labor share of national income is drawn from Bureau of Economic Analysis, National Income and Product Accounts, Table 1.12: National Income by Type of Income. The analysis of the evolution of slavery through history draws from Jonathan Conning, “On the Causes of Slavery or Serfdom and the Roads to Agrarian Capitalism: Domar’s Hypothesis Revisited,” Hunter College Department of Economics Working Paper, City University of New York, November 2004; Nils-Petter Lagerlöf, “Slavery and Other Property Rights,” Review of Economic Studies, Vol. 76, No. 1, January 2009, pp. 319-342; Evsey Domar, “The Causes of Slavery or Serfdom: A Hypothesis,” Economic History Review, Vol. 30, No. 1, March 1970, pp. 18-32; Kevin O’Rourke and Ronald Findlay, Power and Plenty: Trade, War and the World Economy in the Second Millennium (Princeton: Princeton University Press, 2007), p. 130; and Daron Acemoglu and Alexander Wolitzky, “The Economics of Labor Coercion,” NBER Working Paper, December 2009. Data on the impact of slavery on productivity and economic growth is drawn from Nathan Nunn, “Slavery, Inequality, and Economic Development in the Americas: An Examination of the Engerman-Sokoloff Hypothesis,” MPRA Paper, University Library of Munich, Germany, October 2007; Peter Mancall, Joshua Rosenbloom, and Thomas Weiss, “South Carolina Slave Prices, 1722-1809,” NBER Historical Paper, March 2000; Peter Mancall, Joshua Rosenbloom, and Thomas Weiss, “Agricultural Labor Productivity in the Lower South, 1720-1800,” Explorations in Economic History, Vol. 39, No. 4, October 2002, pp. 390-424. The impact of illegal immigration on capital investments in American agriculture is discussed in Eduardo Porter, “In Florida Groves, Cheap Labor Means Machines,” New York Times, March 22, 2004. Data on wages in Vietnam comes from Vu Trong Khanh and Leigh Murray, “Inflation Fears After Vietnam Boosts Wages,” Wall Street Journal, March 26, 2010.
114-118 What’s Fair Pay?: Data on the cost of goods measured in terms of the average worker’s wage comes from United States Bureau of Labor Statistics, “100 Years of U.S. Consumer Spending: Data for the Nation, New York City, and Boston,” May 2006; J. Bradford Delong, “Cornucopia: Increasing Wealth in the Twentieth Century,” NBER Working Paper, March 2000. The value of speaking English in India is found in Mehtabul Azam, Aimee Chin, and Nishith Prakash, “The Returns to English-Language Skills in India,” IZA Discussion Paper, 2010. The discussion of the higher wages of the tall and the beautiful draws from Anne Case and Christina Paxson, “Stature and Status: Height, Ability, and Labor Market Outcomes,” Journal of Political Economy, Vol. 116, No. 3, 2008, pp. 499-532; Daniel Hammermesh and Jeff Biddle, “Beauty and the Labor Market,” American Economic Review, Vol. 84, 1994, pp. 1174-1194; and Peter Lundborg, Paul Nystedt, and Dan-Olof Rooth, “The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills,” IZA Working Paper, June 2009. The stories about George Eastman and Henry Ford’s labor policies are drawn from Sanford M. Jacobi, Modern Manors: Welfare Capitalism Since the New Deal (Princeton: Princeton University Press, 1997); “Eastman Charted Path for Industry,” New York Times, March 15, 1932; Daniel Raff and Lawrence Summers, “Did Henry Ford Pay Efficiency Wages?” Journal of Labor Economics, Vol. 5, October 1987, pp. S57-86. The analysis of the number of American jobs that could be sent offshore is found in Alan Blinder and Alan Krueger, “Alternative Measures of Offshorability: A Survey Approach,” NBER Working Paper, August 2009. Chinese economic data comes from the International Monetary Fund (www.imf.org/external/pubs/ft/weo/2010/01/weodata/index.aspx, accessed 08/09/2010) and the United Nations Millennium Indicators (at mdgs.un.org/unsd/mdg/Default.aspx , accessed 08/09/2010). Data on unionization in the United States comes from the Bureau of Labor Statistics (www.bls.gov/news.release/union2.nr0.htm, accessed 07/18/2010); and Barry Hirsch and David Macpherson, Union Membership and Earnings Data Book (Arlington, Va.: The Bureau of National Affairs, Inc., 2010).
118-121 Paying Superman: Data on pay in Major League Baseball are drawn from the USA Today baseball salary database (content.usatoday.com/sports/baseball/salaries/default.aspx , accessed 07/18/2010). Data on corporate pay is drawn from Thomas Piketty and Emmanuel Saez, “Income Inequality in the United States, 1913-1998,” Quarterly Journal of Economics, Vol. 118, 2003, pp. 1-39, updated tables and figures (at elsa.berkeley.edu/~saez/TabFig2010.xls, accessed 07/18/2010); Carola Frydman and Raven Saks, “Executive Compensation: A New View from a Long-Term Perspective, 1936-2005,” NBER Working Paper, June 2008, Table 3; and Xavier Gabaix and Augustin Landier, “Why Has CEO Pay Increased so Much?,” NYU Working Paper, 2006. Sherwin Rosen’s analysis is in Sherwin Rosen, “The Economics of Superstars,” American Economic Review, Vol. 71, No. 5, December 1981, pp. 845-858. The analysis of the fast growth of earnings at the top in pop music, Hollywood, and soccer draws from Alan Krueger, “The Economics of Real Superstars: The Market for Rock Concerts in the Material World,” Journal of Labor Economics, Vol. 23, January 2005, pp. 1-30; the IMDB database (at www.imdb.com/name/nm0000129/bio and http://www.imdb.com/title/tt0120755/, accessed 07/18/2010); Edward Jay Epstein, “Tom Cruise Inc.: The Numbers Behind His Celebrity,” Slate, June 27, 2005; Claudia Eller, “Tom Cruise Sees Box Office Share Scaled Back,” Los Angeles Times, February 17, 2010; Matthew Saltmarsh, “European Soccer Revenue Climbs, but So Do Salaries,” New York Times, June 8, 2010; Garry Jenkins, The Beautiful Team (New York: Simon & Schuster, 2006); Futebolfinance.com; Christina Settimi, “Soccer’s Highest Earners,” Forbes.com, April 21, 2010; and Fédération Internationale de Football Association (www.fifa.com/aboutfifa/marketing/factsfigures/tvdata.html). Data on the earnings of the richest families comes from Piketty and Saez, op. cit.
121-125 Farmers and Financiers: Data on bankers’ bonuses come from the office of the Comptroller of New York State (www.osc.state.ny.us/press/releases/feb10/bonus_chart_2009.pdf, accessed 07/18/2010.) Data on banks’ profits drawn from the Bureau of Economic Analysis (www.bea.gov). Faylene Whitacker’s comments about immigrant laborers are in Eduardo Porter, “Who Will Work the Farms?” New York Times, March 23, 2006. Data on international migration is drawn from the Migration Policy Institute (www.migrationinformation.org/datahub/charts/6.1.shtml. , accessed 07/18/2010). Data on growing inequality in China are in Anthony B. Atkinson, Thomas Piketty, and Emmanuel Saez, “Top Incomes in the Long Run of History,” NBER working paper, October 2009. Analysis on the impact of inequality on economic growth draws from Dan Andrews, Christopher Jencks, and Andrew Leigh, “Do Rising Top Incomes Lift All Boats?,” Harvard University John F. Kennedy School of Management Working Paper, 2009. Data on economic growth per person in the United States is from the International Monetary Fund (http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/weorept.aspx?pr.x=37&pr.y=12&sy=1980&ey=201
5&scsm=1&ssd=1&sort=country&ds=.&br=1&c=111&s=NGDPRPC%2CNGDPPC&grp=0&a=, accessed 08/09/2010). International comparisons of inequality are found in Organisation for Economic Co-operation and Development, Growing Unequal? Income Distribution and Poverty in OECD Countries (OECD Publishing, October 2008), pp. 77-92. Data on the impact of income inequality on health and segregation are drawn from Richard Wilkinson and Kate Pickett, The Spirit Level: Why More Equal Societies Almost Always Do Better (New York: Bloomsbury Press, 2010); and Joseph Gyourko, Christopher Mayer, and Todd Sinai, “Superstar Cities,” NBER Working Paper, July 2006.
125-127 The Vanishing Middle: The discussion of the impact of education on income growth draws from Claudia Goldin and Lawrence Katz, The Race Between Education and Technology (Cambridge, Mass.: Belknap Press of Harvard University Press, 2008); David Autor and David Dorn, “Inequality and Specialization: The Growth of Low-Skill Service Jobs in the United States,” NBER working paper, November 2008; Congressional Budget Office, “Changes in the Distribution of Workers’ Annual Earnings Between 1979 and 2007,” October 2009; Francine Blau, Marianne Ferber, and Anne Winkler, The Economics of Women, Men and Work, 5th edition (Upper Saddle River, N.J.: Pearson Prentice Hall, 2006); Bureau of Labor Statistics (www.bls.gov/news.release/wkyeng.t05.htm, accessed 08/08/2010); Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States,” 2008 (www.census.gov/prod/2009pubs/p60-236.pdf, accessed 08/09/2010); Bureau of Labor Statistics, “100 Years of U.S. Consumer Spending: Data for the Nation, New York City, and Boston,” May 2006 (www.bls.gov/opub/uscs/home.htm, accessed 08/09/2010); and Bureau of Labor Statistics (www.bls.gov/bls/wages.htm, accessed 08/08/2010).
127-129 A Banker’s Paradise: The narrative about financial deregulation and the rise of bankers’ pay draws from Thomas Philippon and Ariell Reshef, “Wages and Human Capital in the U.S. Financial Industry: 1909-2006,” NBER working paper, January 2009. The data on banks’ share of corporate profits comes from the Bureau of Economic Analysis, NIPA Tabes No. 6.16A-D (www.bea.gov/national/nipaweb/Index.asp, accessed 08/09/2010). The data on university graduates taking jobs in finance comes from Claudia Goldin and Lawrence F. Katz, “Transitions: Career and Family Lifecycles of the Educational Elite,” American Economic Association Papers and Proceedings, May 2008, pp. 363- 366; and Princeton University, Office of Career Services, Class of 2008 Career Survey Report.
130-133 The Price of Free: The discussion about the success of Radiohead’s In Rainbows draws from Billboard (www.billboard.com/#/); and Daniel Kreps, “Radiohead Publishers Reveal ‘In Rainbows’ Numbers,” Rolling Stone, October 15, 2008. Analysis about the value of viewers’ attention to broadcast television is drawn from Eduardo Porter, “Television Is Not Free and Does Not Want to Be,” New York Times, March 8, 2010; and Ernest Miller, “Top Ten New Copyright Crimes,” Lawmeme, May 2, 2002 (lawmeme.research.yale.edu/modules.php?na me=News&file=article&sid=198, accessed 07/18/2010).
133-137 The Allure of the Free: The origin of the “no free lunch” saying is taken from William Safire, “On Language: Words Out in the Cold,” New York Times, February 14, 1993. The psychological impact of receiving something for free comes from David Adam Friedman, “Free Offers: A New Look,” New Mexico Law Review, Vol. 38, Winter 2008, pp. 49-94; Kristina Shampanier, Nina Mazar, and Dan Ariely, “Zero as a Special Price: The True Value of Free Products,” Marketing Science, Vol. 26, No. 6, November/December 2007, pp. 742- 757. Adrian Johns makes his point on the importance of information to the economy of the twenty-first century in Piracy: The Intellectual Property Wars from Gutenberg to Gates (Chicago: University of Chicago Press, 2009). Comments on gift-giving rituals among marginal cultures draws from Marcel Mauss, The Gift: The Form and Reason for Exchange in Archaic Societies (New York: W. W. Norton, 1990), p. 30. Data on spam volumes and costs drawn from Messagelabs ( .wwwmessagelabs.com/resources/press/45666, accessed 7/18/2010); Chris Kanich, Christian Kreibich, Kirill Levchenko, Brandon Enright, Geoffrey Voelker, Vern Paxson, and Stefan Savage, “Spamalytics: An Empirical Analysis of Spam Marketing Conversion,” Communications of the Association for Computing Machinery, Vol. 52, No. 9, September 2009, pp. 99-107; Marco Caliendo, Michel Clement, Dominik Papies, and Sabine Scheel-Kopeinig, “The Cost Impact of Spam Filters: Measuring the Effect of Information System Technologies in Organizations,” IZA Working Paper, October 2008. German wages are from Eurostat (epp.eurostat .ec.europa.eu/portal/page/portal/eurostat/home/, accessed 7/18/2010). The Korean reaction to spam is in Robert Kraut, Shyam Sunder, Rahul Telang, and James Morris, “Pricing Electronic Mail to Solve the Problem of Spam,” Yale ICF Working Paper, July 2005.
137-141 Napstering the World: The falling prices of computers are found in Bureau of Economic Analysis, NIPA table 1.5.4, Price Indices for GDP, expanded detail (www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=34&ViewSeries=NO&Java=no&Request3Place=N&3Place=N&FromView=YES&Freq=Year&FirstYear= 1980&LastYear=2009&3Place=N&Update= U pdate& Java Box=no#Mid, accessed on 08/16/2010). The explosion of free music downloads is detailed in Amanda Lenhart and Susannah Fox, “Downloading Free Music,” Pew Internet and American Life Project, September 28, 2000. Stewart Brand’s quote is in Jack Fuller, What Is Happening to News: The Information Explosion and the Crisis in Journalism (Chicago: University of Chicago Press, 2010), p. 104. Chris Anderson’s thoughts can be found in Free: The Future of a Radical Price (New York: Hyperion, 2009). Data on the declining sales of music recordings come from the Recording Industry Association of America (awww.riaa. org) and the International Federation of the Phonographic Industry (www.ifpi.org). The stories about the music industry’s losing battle against free music are drawn from Eric Pfanner, “Court Says File-Sharing Site Violated Copyright,” New York Times, April 18, 2009; John Schwartz, “Tilting at Internet Barrier, a Stalwart Is Upended,” New York Times, August 11, 2009; Joseph Plambeck, “Idea Man of LimeWire at a Crossroads,” New York Times, May 23, 2010; “The State of Online Music: Ten Years After Napster,” Pew Internet and American Life Project, June 15, 2009; Hilmar Schmundt, “Darth Vader and the Vikings: The Rise of Sweden’s Pirate Party,” Der Spiegel Online, June 19, 2009; IFPI Digital Music report 2009 (www.ifpi.org/content/section_resources/dmr2009.html, accessed 07/18/2010); Tim Arango, “Despite iTunes Accord, Music Labels Still Fret,” New York Times, February 1, 2009. Data on how free downloads are making inroads in Hollywood are drawn from “The Cost of Movie Piracy,” Motion Picture Association of America, 2005; IFPI Digital Music Report 2009; and Brian Stelter and Brad Stone, “Digital Pirates Winning Battle with Studios,” New York Times, February 4, 2009. The discussion of the top sources of news about Michael Jackson’s death is found in “Protect, Point, Pay: An Associated Press Plan for Reclaiming News Content Online,” Associated Press internal memorandum, unpublished, July 2009. Data on newspapers’ declining advertising revenue come from the Newspaper Association of America (at www.naa.org). Google’s financial data come from the company.
141-144 Profiting from Ideas: The story of Brunelleschi’s patent on Il Badalone is in Paul Robert Walker, The Feud That Sparked the Renaissance: How Brunelleschi and Ghiberti Changed the Art World (New York: William Morrow, 2002), pp. 117- 118. Data on the pharmaceutical industry’s investments are in Joseph DiMasi, Ronald Hansen, and Henry Grabowski, “The Price of Innovation: New Estimates of Drug Development Costs,” Journal of Health Economics, Vol. 22, 2003, pp. 151-185. Details of Brazil’s compulsory licensing of antiretroviral drugs are found in “Timeline on Brazil’s Compulsory Licensing,” Program on Information Justice and Intellectual Property, American University, Washington College of Law, April 2008 (www.ggp.up.ac.za/human_rights_access_to_medicines/syllabus/2009/day2/2PIJIPBrazilTimeline.pdf, accessed 08/08/2010). Changes in Indian patent law are described in Donald McNeil Jr., “India Alters Law on Drug Patents,” New York Times, March 24, 2005. The impact of patent expiry on the prices and market share of branded drugs is discussed in Laura Magazzini, Fabio Pammolli, and Massimo Riccaboni, “Dynamic Competition in Pharmaceutica
ls: Patent Expiry, Generic Penetration, and Industry Structure,” European Journal of Health Economics, Vol. 5, June 2004, pp. 175-182; Frank R. Lichtenberg and Gautier Duflos, “Time Release: The Effect of Patent Expiration on U.S. Drug Prices, Marketing, and Utilization by the Public,” Manhattan Institute Center for Policy Research, Medical Progress Report No. 11, October 2009 (www.manhattan-institute.org/pdf/mpr_11.pdf, accessed 08/08/2010). The impact of patents on the creation and diffusion of innovations is discussed in William Baumol, “Intellectual Property: How the Right to Keep It to Yourself Promotes Dissemination,” Review of Economic Research on Copyright Issues, Vol. 2, No. 2, pp. 17-23; Steve Lohr, “Now, an Invention Inventors Will Like,” New York Times, September 21, 2009.
The Price of Everything Page 29