Originally published on Economics from the Top Down. In How Hierarchy Can Mediate the Returns to Education I examined the pay structure of the US military. I found that hierarchical rank is (by far) the strongest determinant of military pay. Here I want to show you that there is a regularity to military pay. In Continue Reading
How Hierarchy Can Mediate the Returns to Education
Originally published on Economics from the Top Down. In The Social Environment as a Cause in Economics I argued that human behavior has two parts: Individual variation An environment that acts on this variation To illustrate these two parts, I used the example of the peppered moth. This species comes in two colors — black Continue Reading
2020/01: Fix, ‘Economic Development and the Death of the Free Market’
ABSTRACT Free markets are, according to neoclassical economic theory, the most efficient way of organizing human activity. The claim is that individuals can benefit society by acting only in their self interest. In contrast, the evolutionary theory of multilevel selection proposes that groups must suppress the self interest of individuals. They often do so, the Continue Reading
An Evolutionary Theory of Resource Distribution (Part 3)
Originally published on Economics from the Top Down. When it comes to earning income in a hierarchy, it’s not what you know that matters. It’s who you control. This was the provocative idea that I proposed in Part 2 of this series on an evolutionary theory of resource distribution. In this post, I put this Continue Reading
An Evolutionary Theory of Resource Distribution (Part 2)
Originally published on Economics from the Top Down. A 25% chance. That’s the likelihood that when I tell someone I’m searching for a job, they’ll say: Remember, Blair … to land a job, it’s not what you know that matters. It’s who you know. OK, maybe I’m exaggerating this chance. Still, it’s an open secret Continue Reading
Fix, 'An Evolutionary Theory of Resource Distribution'
ABSTRACT This paper explores how the evolution of human sociality can help us understand how we distribute resources. Using ideas from sociobiology, I argue that resource distribution is marked by a tension between two levels of natural selection. At the group level, selfless behavior is advantageous. But at the individual level, selfish behavior is advantageous. Continue Reading
Fix, 'Personal Income and Hierarchical Power'
ABSTRACT This article examines the relation between personal income and hierarchical power. In the context of a firm hierarchy, I define hierarchical power as the number of subordinates under an individual’s control. Using the available case-study evidence, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power Continue Reading
The Allure of Marxism … And Why It’s a Mistake
Originally published on Economics from the Top Down. Karl Marx is probably the most important social scientist in history. But while his influence is beyond compare, Marx’s legacy is, in many ways, disastrous. Few thinkers have inspired so many people to commit crimes against humanity. Think of Stalinist gulags. Think of the Ukrainian famine of Continue Reading
As it Dies, We Talk About the ‘Free Market’ More
Originally published on Economics from the Top Down. In The Growth of Hierarchy and the Death of the Free Market, I argued that economic development involves killing the free market. What was the evidence? As energy use increases, so does the relative number of managers. This growth of managers, I argued, indicates that economic development Continue Reading
The Growth of Hierarchy and the Death of the Free Market
Originally published on Economics from the Top Down. Do you believe in free markets? Do you think that unfettered competition is the best way to organize society? If so, this post is intended to shake your faith. No, I’m not going to argue that free markets are bad. Instead, I’m going to show you some Continue Reading