Edward Conard

Top Ten New York Times Bestselling Author

  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “Unintended Consequences should be read by anyone who takes for granted the superiority of progressive taxation and has not thought carefully about the trade-offs involved.” - The New Republic
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
Upside of Inequality Oxford Unintended Consequences

Nat Malkus and Sam Hollon American Enterprise Institute
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A large sample of Indiana high school students shows a near-linear relationship between 8th grade math test scores and participation in varsity athletics. Academic success and participation in extracurriculars appear to be complementary.

We find large gaps in varsity sports participation by academic achievement, which we measure using students’ eighth-grade math test scores. Students who attended the smallest schools (first quintile) were 2.8 times as likely to participate in varsity sports as those who attended the largest schools (fifth quintile). We find that after adjusting for school size 35% of students in the top achievement quintile played varsity sports in 2025, compared with just 12% of students in the bottom quintile. In general, the relationship between achievement quintiles and varsity sports participation was remarkably linear. [The exception was football], the largest sport by participation [17% of all varsity athletes and overwhelmingly male]. Here the top quintile [in 8th grade math] had 20% lower odds of playing than students in the middle achievement quintile.

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AI Summary. Non-college workers ages 22–34 are experiencing historically low unemployment relative to their own two-decade range, outperforming college-educated peers on that relative measure. College graduates still hold an absolute advantage, with a 2.7% unemployment rate versus 4.7% for high-school-only workers.

Theo Francis and Ray Smith Wall Street Journal
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In 2026, the 12-month moving-average unemployment for college-educated 22–34-year-olds is above its post-2003 mean, while the rate for non-college peers is historically low. Prime-age college grads still have lower unemployment than those with no degree.

Is the job market finally tightening for workers without degrees?

Core argument: Non-college workers ages 22–34 are experiencing one of their strongest job markets in two decades, with unemployment rates near historic lows relative to their own 2003–present range, outperforming their college-educated peers on that relative measure.

The unemployment rate for workers ages 22 to 34 who never graduated from college has rarely been lower in the past two decades. To gauge how the job market has shifted for each cohort, [Gad Levanon, Burning Glass’s chief economist] compared current unemployment rates for the different groups with their own range of unemployment rates since 2003. The analysis included data through July. By that measure, the job market looks much better for blue-collar workers, including those in construction and on manufacturing lines, and manual-service workers. It is [however] still easier to find a job with a college degree. The unemployment rate for degree-holders in their prime working years—ages 25 to 54—averaged 2.7% for the 12 months ending in July - well below the 3.6% rate for workers with just some college education, and 4.7% for people with a high-school diploma only.

Takeaways by Macro Roundup® AI

  1. Non-college workers ages 22–34 are experiencing one of their strongest job markets in two decades, with unemployment rates near historic lows relative to their own 2003–present range, outperforming their college-educated peers on that relative measure.
  2. On an absolute basis, a college degree still confers a significant labor-market advantage: prime-age degree-holders averaged 2.7% unemployment versus 3.6% for some-college workers and 4.7% for high-school-only workers over the 12 months ending July.

Related Articles:

  • College Grads Struggle to Find Jobs. Non-Grads Are Giving Up — The narrowing unemployment gap between young college graduates and non-graduates reflects rising labor force dropout among non-graduates, not equal job market outcomes; the share of young non-graduates who are employed is 1.7 percentage points below pre-pandemic levels and falling, while graduates are near recovery.
  • To Fix Education, Fix The Economy First — Using OECD skills data and the Luxembourg Income Study, Burn-Murdoch finds US workers at the lowest levels of literacy and numeracy earn ~ on par with British…
  • The College Wage Premium in the Generative AI Era — S. 575 between 2022 and 2026, the first sustained decline in relative demand for college-educated labor in four decades. AI exposure in white-collar occupations accounts for roughly 28% of that drop, as wage growth slowed disproportionately in high-AI-exposure jobs where college graduates are concentrated.

AI Summary. Global student performance in mathematics and reading has declined sharply since 2018, with reading scores falling 14 points and math scores falling 9 points between 2022 and 2025 alone.

OECD Staff Organisation for Economic Co-operation and Development
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Mean OECD math and reading scores fell roughly 25 PISA points—about a year of schooling—between 2018 and 2025, alongside reduced motivation and engagement and increased carelessness, exemplified by a near-doubling of “hasty readers.”

Are global education systems failing to teach core skills?

Core argument: The share of “hasty readers” — students giving fast, incorrect responses — nearly doubled from 7% in 2018 to 11% in 2025, with math showing a parallel rise between 2022 and 2025, signaling deteriorating effort and engagement rather than pure skill loss.

In math, performance remained close to the 2003 level up to 2018, then dropped sharply btw 2018 and 2025. Mean performance dropped by 9 score points in mathematics and about 14 score points in reading btw 2022 and 2025. Over the 2018-2025 period, the largest drops [in reading] were among the most advantaged 25% of socio-economic status, and the socio-economic gap with the most disadvantaged students reduced somewhat, by 11 points, on average across 35 OECD countries. In mathematics, the share of disadvantaged students scoring below proficiency Level 2 increased in previous cycles and remained high in 2025; among advantaged students, the share scoring below proficiency Level 2 increased, reaching 18% in 2025, about 4pp. Students’ reports of their motivation for learning and engagement with school also declined between 2022 and 2025. The proportion of “hasty readers” – those who gave fast and incorrect responses – increased by about five percentage points, on average, from almost 7% in 2018 to 11% in 2025. Analyses for math, also show an increase in the proportion of hasty responses between 2022 and 2025.

Takeaways by Macro Roundup® AI

  1. The share of “hasty readers” — students giving fast, incorrect responses — nearly doubled from 7% in 2018 to 11% in 2025, with math showing a parallel rise between 2022 and 2025, signaling deteriorating effort and engagement rather than pure skill loss.
  2. Among the most advantaged quartile of students, the share scoring below math proficiency Level 2 reached 18% in 2025, up approximately 4 percentage points, indicating that academic decline is no longer concentrated among disadvantaged populations.

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AI Summary. The narrowing unemployment gap between young college graduates and non-graduates reflects rising labor force dropout among non-graduates, not equal job market outcomes; the share of young non-graduates who are employed is 1.7 percentage points below pre-pandemic levels and falling, while graduates are near recovery.

Justin Fox Bloomberg
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Labor force participation is rising for American college graduates aged 25–29, and is now at 89.4% – above its pre-pandemic level. Participation among non-college members of that age cohort is falling; at 78.7%, it is now below its pre-pandemic level.

Are non-graduates disappearing from the job market?

Core argument: The narrowing education-unemployment gap among young adults reflects labor force withdrawal by non-degree holders—not diminished diploma value—as workers who stop seeking jobs are excluded from unemployment calculations.

The narrowing of [the unemployment gap btw college and non-college workers] in recent years has lent support to narratives that college diplomas are losing their value amid the rise of large language models, the purported return of blue-collar work, and other job market changes. But while it may well be that diplomas have lost value, the recent shrinking of the young-adult education-unemployment gap seems to be driven mainly by a different phenomenon. Growing numbers of young adults without college degrees simply aren’t trying to find work and thus aren’t counted in unemployment calculations. The employment-population ratio for young college grads is not far off from where it was just before the pandemic and seems as if it might be headed upward again after a sharp drop in 2023 and 2024, for non-grads it is 1.7 percentage points lower than before the pandemic and clearly trending downward.

Takeaways by Macro Roundup® AI

  1. The narrowing education-unemployment gap among young adults reflects labor force withdrawal by non-degree holders—not diminished diploma value—as workers who stop seeking jobs are excluded from unemployment calculations.
  2. Young adults without college degrees carry an employment-population ratio 1.7 percentage points below pre-pandemic levels and trending downward, while college graduates have nearly recovered to pre-pandemic parity.

Related Articles:

  • Labor Force Participation Is High If You Measure It Right — The overall labor force participation rate is a misleading measure of labor market health because it does not account for age-related variation in work patterns, making it especially distorted when large population groups shift into retirement-age brackets.
  • How Labor Force Participation Has Diverged Across Genders — Male labor force participation has fallen steadily since the 1970s, while female participation rose sharply before plateauing, driven by shifts in education levels and age composition rather than a single cause.
  • AI, Immigration, and Collapsing Labor Force Participation — Declining labor force participation concentrates economic output among fewer workers, raising the return on automation and making productivity growth the primary driver of expansion. Any productivity shortfall carries greater consequences because a shrinking worker base cannot compensate through increased participation.

AI Summary. Emergency federal education grants during the pandemic did not measurably reduce student learning loss, partly because qualifying districts saw local revenues fall by ~$907 per pupil over three years — offsetting federal funds rather than supplementing them.

Jeffrey Clemens, Philip Hoxie and Stan Veuger National Bureau of Economic Research
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Exploiting a discontinuity in K-12 public school districts’ qualification for Covid emergency funding (ESSR), Clemens et al find that the funds did not mitigate learning loss. To a large extent, local districts used them to lower property taxes.

Emergency funding for K-12 public schools was an important component of recession spending packages during COVID, involving $190 billion in additional expenditure. We see no evidence that ESSER funds helped to mitigate learning loss, at least in the short run. We find no statistically significant evidence that districts increased expenditures in SY 2021 or SY 2022. We do find evidence that districts that qualified for additional ESSER funds had statistically significant reductions in local revenues that were in excess of their ESSER funds. This pass-through of federal funds may partially explain why ESSER had minimal impacts on learning loss for districts around the 5% poverty threshold. Our estimates suggest that over the three years, crossing the qualification cutoff for additional ESSER funds is associated with a $907 per pupil decrease in local revenues, or about 8% of the pre-COVID average. We show the decline in local revenues as an event study in Figure 3, which includes a flat pre-COVID trend in local revenues per pupil across the qualification threshold. In Table 5,Column 5 [], we can see that about 80% of the revenue decline came from decreases in revenues from property taxes, [which fell] by $718 per pupil across the 3 years. The findings apply specifically to districts in the neighborhood of the 5% poverty threshold for qualifying for additional ESSER funds.

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AI Summary. Black and Hispanic students make up 62% of New York City public school enrollment but receive only ~10% of seats at the city's eight most selective high schools, while Asian students—19% of public school enrollment—receive 57% of those seats.

Matthew Haag New York Times
Date Posted:

62% of New York City public school students are black or Hispanic, and 19% are Asian. Stuyvesant, an elite public school, offered admission to 777 students. Three offers went to black students, and 21 to Hispanics; 69% went to Asian students.

Why do selective schools admit so few Black and Hispanic students?

About 62% of the students in the city’s public schools are Black or Hispanic. At [NYC] eight most prestigious high schools, about 10% of the students in the incoming freshman class are expected to be Black or Hispanic, roughly the same as last year. About 80% of the seats went to Asian and white students. At Stuyvesant High School in Manhattan, often considered the most selective of the city’s specialized high schools, three of the 777 offers were made to Black students, and 21 were for Hispanic students, together representing a nearly one-third decline from the previous freshman class. About 19% of all public school students are Asian, but they received 57% of the offers for the specialized schools for the fall. The rates were higher at some schools, including 69% at Stuyvesant and 78% at Queens High School for the Sciences at York College.

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AI Summary. U.S. student test scores have fallen across 83% of school districts in reading and 70% in math over the past decade, with declines affecting rich and poor districts equally. Reading scores were already falling as fast before the pandemic as during it, and recovery since has been slow.

Claire Cain Miller, Francesca Paris and Sarah Mervosh New York Times
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Btw 2015 and 2025, 70% of American school districts saw a decline in math scores and 83% a drop in reading scores. The losses cut across demographic groups, and are not merely a consequence of the pandemic.

Are declining test scores a structural problem rather than a pandemic effect?

Core argument: Reading scores fell in 83% of U.S. school districts vs. a decade ago, signaling workforce skill gaps that drive long-term.

Almost everywhere in America, students are performing worse than their peers were 10 years ago, according to new district-level test score data released by the Educational Opportunity Project at Stanford. Compared with a decade earlier, reading scores were down last year in 83% of school districts where data was available, and math scores were down in 70%. The declines have affected both rich and poor districts and crossed racial and geographic divides, [though the biggest losses have been among the lowest-achieving students]. From 2017 to 2019, students lost as much ground in reading as they did during the pandemic, and reading scores continued to fall at a similar rate through 2024. Education experts say there is no single reason for the declines. But the timing provides some clues. Students’ test scores had been increasing since 1990 — then abruptly stopped in the mid-2010s. That coincided with two events: an easing of federal school accountability under No Child Left Behind, which was replaced in 2015, and the rise of smartphones, social media and personalized school laptops.

Takeaways by Macro Roundup® AI

  1. Reading scores fell in 83% of U.S. school districts vs. a decade ago, signaling workforce skill gaps that drive long-term.
  2. Math scores climbed since 2022 while reading gains remained modest, suggesting uneven skill recovery that leads to divergent workforce readiness.

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AI Summary. High school varsity sports participation reduces student absenteeism by ~20%, with absence rates falling further during active seasons, indicating the relationship is at least partly causal rather than purely a result of selection.

Nat Malkus and Sam Hollon American Enterprise Institute
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The absentee rate of Indiana high school students, ~23% of whom played a varsity sport, was ~20% lower for those who participated in varsity athletics than for non-athletes. The effect was stronger when an athlete’s particular sport was in season.

Does participation in high school sports significantly reduce student absenteeism?

Core argument: Varsity athletes’ absence rates drop 1.37 pts below non-athletes’, a ~20% reduction that drives improved school engagement year-round.

We find that varsity sports participation is strongly associated with better student attendance, and we argue it is plausible that varsity sports participation causes better attendance. When we control for a number of factors that we know matter for both sports participation and attendance, we continue to find that varsity athletes are absent less often than their peers across the entire year. Across the school year, athletes’ absence rate was 1.37 points lower than non-athletes’. That’s a reduction of almost 20%. The broad pattern shown in Table 1 is that students from more advantaged groups were more likely to participate in varsity sports and less likely to be absent from school. It’s thus no surprise that, in the raw data, there is an association between playing varsity sports and having good attendance (Figure 3). But is that because students who attend school more reliably are more likely to play sports or because playing sports leads to better attendance? One way to tease out the answer is to compare varsity athletes' attendance during their sports seasons with their attendance the rest of the year. Not only do varsity athletes have lower annual absence rates—especially unexcused absences—than non-athletes, but [Figure 3 and Figure 4] show that their absence rates fall further when their sport is in season, [which suggests at least some causal effect].

Takeaways by Macro Roundup® AI

  1. Varsity athletes’ absence rates drop 1.37 pts below non-athletes’, a ~20% reduction that drives improved school engagement year-round.
  2. In-season absence rates fall further for varsity athletes, suggesting sports participation directly leads to more reliable attendance patterns.
  3. Athletes from advantaged backgrounds show stronger attendance gains, indicating varsity sports participation compounds existing socioeconomic advantages in school engagement.

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