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Kent State Economics Professor’s Research Referred to by White House

Posted Mar. 24, 2014

Justin Barnette, Ph.D., assistant professor at Kent State University’s College of Business Administration, was referenced for his research in the White House report, “Addressing the Negative Cycle of Longterm Unemployment.”

The report was published by the Executive Office of the President after President Barack Obama’s call to action to give the long-term unemployed a fair shot during the State of the Union Address in January of this year.  The references to Barnette’s research can be found on pages four and 15 of the report.

“My research shows that when you lose your job and then are re-hired, you will more than likely be paid less than you had previously made,” says Barnette. “That goes hand-in-hand with the White House’s report on the negative effects of long-term unemployment.”

“I believe Professor Barnette’s research being referred to in a White House report is just one more example of the important and significant work being done by faculty members in the Department of Economics,” says Richard Kent, Ph.D., chair of Kent State's Department of Economics. “This is noteworthy not just for Professor Barnette, but also for the Department of Economics, the College of Business Administration and Kent State University.”

Barnette began research for the working paper, “Wage Scars from Job Loss,” with co-author Amanda Michaud while studying at the University of Minnesota. As stated in the working paper, “Using a panel survey of workers from the Panel Study of Income Dynamics, we estimate the decrease in wages due to involuntary job loss. We find that this decrease leaves a lasting scar of more than 20 years, costing average displaced workers 11.6 percent of their predicted hourly wages every year after re-employment. These losses vary: laid-off workers lose 14.4 percent and workers displaced from company closings lose 5.7 percent.”

Currently, Barnette is researching the cause and effect of inequality in the macroeconomy.

For more information about Kent State’s Department of Economics, visit www.kent.edu/business/economics.