Hong Kong falls into recession; Australia faces teacher shortage
Today’s global news summary brings news affecting Hong Kong, Australia, and the globe and discusses issues as diverse as recession, teacher shortage, and happiness.
- Hong Kong: Hong Kong slipped into recession
- Australia: Federal government considers large pay rises for teachers
- Worldwide: The money required to lead a happy life is less than you might think
Hong Kong slipped into recession
Labor markets and institutions
Hong Kong’s economy has shrunk by a second consecutive quarter dropping it into recession, reports Aljazeera. Further pressures are expected by analysts unless borders with mainland China and the rest of the world can be fully re-opened. Rising interest rates and weakened global trade are also adding to Hong Kong’s financial woes. The Census and Statistics Department reported a 3.9% decrease in GDP in the first quarter of 2022 followed by a further 1.4% in the second quarter. Quarantine-free travel between Hong Kong and mainland China is yet to have a clear timetable under Beijing’s strict zero Covid-19 policy. Hong Kong still has some of the world’s strictest restrictions, including a week-long quarantine for arrivals and a ban on group gatherings of more than four people.
“Designing the optimal response to a negative shock requires a deep understanding of the mechanisms through which the economy and, in particular, its labor market operates,” writes Edward P. Lazear for IZA World of Labor.
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From Mancession to Shecession: Women's Employment in Regular and Pandemic Recessions
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Australia’s federal government considers large pay rises for teachers
Education and human capital
ABC News reports that the Australian federal government is considering massive pay rises for some teachers, while paying people to retrain in order to counteract teacher shortages. So-called “master teachers” and senior teaching positions could be awarded a 40% wage boost. While growing numbers of children are attending school, fewer people are training to become teachers. Paid teaching internships are also to be considered for those from other industries who are completing a two-year master’s degree in education. Australian Education Union deputy president Meredith Peace believes a wage rise for all teachers, not just those in senior positions, would be fairer. “This is a much more complex issue than that. We need proper career structures that reward high performing teachers who want to stay in the classroom,” she says. “We need to provide decent salaries across the board.”
Scott A. Imberman asks how effective financial incentives are for teachers, in his IZA World of Labor article. He says “Linking teacher pay to student performance has become popular, but evidence on its effectiveness is mixed."
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The money required to lead a happy life is less than you might think
Behavioral and personnel economics
Quartz reports on a recent study published by the journal Nature Sustainability which surveyed people from around the world about the amount of wealth required to live an ideal life. Participants were asked to choose the prize they’d hope to win in a lottery from $10,000 to $100 billion—unlimited wealth. The results of the study suggest people don’t think they need unlimited wealth to be happy. The majority selected $1 million or $10 million. Paul Bain, co-author of the paper says “Discovering that most people’s ideal lives are actually quite moderate could make it socially easier for people to behave in ways that are more aligned with what makes them genuinely happy and to support stronger policies to help safeguard the planet.”
“People who are unable to maintain the same standard of living as others around them experience a sense of relative deprivation that has been shown to reduce feelings of well-being,” says Xi Chen in his IZA World of Labor article.
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Relative deprivation and individual well-being
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Opinions
Are happy workers more productive?
The unhappiness of the US working class
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