Monday, October 27, 2014

What happens when you pay teachers $125K?

Kids learn more and good teachers don't quit, of course! A NYC charter school (TEP) tried it out and saw impressive improvements. After the 4-year pilot, TEP students' test scores were about +1.6 years ahead of peers in math, and +0.4 years ahead in English. And this was not a posh suburban academy, it was an >90% low-income and minority school. 

Granted it was just 1 case, but the results were promising enough that I hope others will try to replicate and scale it up. The school got no additional funding, so the learning gains were basically free. It was able to pay teachers six-figs because they increased avg. class size from 27 to 31, and ran leaner without as many wasteful administrators (middle managers). Everyone employed at that school did both teaching work and leadership/admin stuff, which probably made them feel more empowered and autonomous (key drivers of job satisfaction).

Poor performers did not get the high salary for long; contracts were not renewed for about 1/3 of teachers, and fresh talent was brought in. This motivated teachers to give high effort and maximize their skills/career development. In other words, the ones that could... they earned their pay. And students benefited in the process. Obviously this was only possible at a non-union charter school. Such a program may not "fix" bad inner-city teachers, but at least it has a better chance to retain the good ones (teacher turnover is abysmal in high-needs schools for obvious reasons), and provide motivation for those in between. If we want professional performance, it's not a huge stretch to start treating teachers like professionals. This is especially impactful in high-cost-of-living areas like NYC.

Sunday, October 19, 2014

A marathon in Beijing - REALLY!?!

One of the dumber ideas I've heard about in a while. US soldiers didn't have a choice - they were ordered to fight in our foolish exercise in Iraq. But these runners voluntarily participated and paid money, why!?! Of all the marathons in the world.
I guess this is another reflection of the hubris and obliviousness of Chinese officials. They want to do all the things that the other major global cities do, regardless of feasibility. But how can they put thousands of people in danger for an insignificant race? With all the hard-breathing of a ~3 hr outdoor race during especially hazardous conditions, is that like equivalent damage to a normal person living in Beijing for a month? And don't people know that those dust masks don't do squat against pollutants and particulates as small as smog (2.5 microns diameter, which you need an industrial respirator for)?
But besides the runners, of course millions of people have to live through these horrible conditions for their entire lives (not to mention the questionable safety of their consumer goods, drinking water, workplace conditions, and roadways). The Chinese health system is crap for most people, and the lower-income folks may not be able to afford air purification measures.

Wednesday, October 15, 2014

Apple and Facebook offer employees egg freezing benefit

News broke that Apple and Facebook provide a new benefit to female employees: they will cover the costs of egg freezing up to $20K. Bloomberg Businessweek says this is the "great equalizer" to "liberate" women, but I call BS. It is pretty disturbing to me for several reasons.

We know that tech is fairly misogynist and gender-unequal, especially in leadership and technical roles. Despite Sanberg's "Lean In" evangelism, most FB leaders are male (the major female execs are her, and in the HR dept). Apple and Google are similar. I don't know if the egg freezing benefit is the most crucial thing that women in tech (or prospective women) need now. In this 2011 list, Apple-FB-Google did not make the top 100 best companies to work for as a mom, despite offering great mat-leave, health care, and subsidized onsite day care. Why? Because the stress and workloads are not worth it. You can set up massage and watering stations at each mile of a Marathon course, but it's still a painful grueling Marathon.

What is the egg freezing signaling? A cynic (like me) would conclude that Apple/FB wants its women to fully focus on work (and work super hard) during their fertile younger years (~25-35). Just like their concierge and commute benefits, this is another way that workers don't have to be bothered by "real life", and can just stay in the work bubble thinking about company goals and their career growth all the time (you know, the truly important things in life). They are all about hacking and disrupting everything, so why can't they disrupt family planning too? Who says you can't have it all as a working mom?

But here's the thing, we know that it's illegal for employers to ask about or discriminate based on family. When a worker decides to start a family, often their career trajectory changes permanently, and managers may subtly or overtly perceive them differently from then on. It's only natural. So the egg freezing is a form of insurance, if you will. Those firms hired supposedly child-less younger women. They may be in relationships, but they will mostly be available for the firm 50-80 hrs/week and ~49 weeks/year. That is what the company expects when it hires. So the egg benefit prolongs that arrangement, for a measly sum of $20K (compare that to 1-6 months mat-leave, and all the lost productivity from childcare responsibilities, illnesses, etc. thereafter). And later when the egg freezer decides to finally start a family, the company can marginalize her to a lesser role, eventually replacing her with a man/new young woman. She's already contributed her value to the firm, now she can "go to pasture" and be a mom at Yahoo or Intel.

I could be underestimating Si Valley snobbery, but I think the # of women who will use this benefit will be small, and the # of women thawing their eggs later to start a family even smaller. Biologically, it's more likely they will have kids naturally. But for those who do choose to freeze and have a family via IVF, it won't be a cake walk either. Success rates are under 20% per egg. The mom might be 35-45 at that point. The older you get, the harder it is to deal with the physical strains of motherhood (unless they plan to nanny everything like Marisa Meyer). And by then they would be mid-career, with even more responsibilities and stress vs. their 20's. So is that a better time to start a family? Sure they'll be richer, but it may also be harder to transition from office rock-star to working mommy. So is the egg benefit just a scam from Apple and FB, tricking talented younger women to postpone their family plans to their detriment? And I don't know if there is data on it, but I wonder if child outcomes are different when the parents are older or younger. Of course teen parents are not preferable either, but I wonder if there is such a thing as "too old". Kids will still need their parents when they are 20-30, and it's just harder when they are geriatric by then. 

Lastly, what about the whole cryo-egg/IVF approach? Obviously it is not an option for most women, and is generally monopolized by wealthier white/Asian people (which tech is too). Will this further the rich-poor & racial gaps? Older pregnancies are a larger health risk for both mother and child. One option is a surrogate mom (pay a younger, poorer lady to carry your fetus - she's just renting out her excess capacity like AirBnB, right?). That is such a First World Problem: build vs. buy right? Outsource the non-value-add stuff, so you can focus on making money. Never compromise, innovate to have your cake and eat it too.

But it also reeks of exploitation. It's kind of sick - search for "surrogate mother" and you get a bunch of ads and sites trying to recruit wombs. Obviously demand > supply, especially with the rise of the Chinese upper class. And older couples who want to conceive will often pay any price. Those with medical need should have access to IVF, but what about those who elected to delay parenthood for their careers? That is kind of like paying to jump the line at Disneyland, or for organ donation. Clearly such procedures like IVF are not equal-opportunity, but the poor have the opposite problem - they sometime have too many kids because of lack of education and access to affordable contraception (as we discussed previously during the Hobby Lobby ruling).

There is even "surrogacy tourism" where Western couples lease a Third World womb (really, are they that cheap that they have to offshore it?). A case in Thailand made the headlines because an AUS couple may have "abandoned" one of their twins after discovering he had Down's (they left him with the surrogate Thai mom and returned home with the "desirable" twin). This is just one incident, but you can imagine the ethical and legal minefield that surrogacy presents.

All the sci-fi stuff from our childhood like Brave New World and Gattaca seem to be getting too close for comfort. Those in the "elite" class get all the privileges and get to lead charmed lives (yes, you can have it all when you work for Apple/FB!), and the rest of humanity just serves them, with the narrow/false hope of joining their ranks some day.

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This may also be a symptom of the competitiveness of silicon valley.  What else can you offer once money, food, on site massage, etc is covered?  The incentives are only going to get weirder at this point.

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I agree that there is an "arms race" re: employee benefits to attract good talent, but remember that Google, Apple, and maybe some others got sued for anti-competitive practices (no engineer poaching collusion to keep comp in check), but FB was not involved. So I guess several forces are affecting benefits. Supposedly US raises are being depressed by the rising costs of health coverage too.

If you took a poll at Apple on what new/enhanced benefits the workforce really wants, I doubt that egg freezing would be high on the list. I think it was a pet project by some HR person to "be innovative" and make some news. I assume the workforce really wants (1) more pay, (2) more vacation (true vacation, as in totally unplugged time), (3) more flex time, and (4) more coaching/training/career dev, not necessarily in that order. But most employers won't budge on that stuff. Speaking of vacation, some companies like Netflix offer unlimited paid vacation. But as you can imagine, this could have the opposite effect (workers scared to ask for a lot of time off, and without a vacation stipend, the firm saves money by not paying out unused balance).

There are some "nefarious benefits" that actually benefit the firm more than the worker. Like offering free dinner - that could encourage workers to stay later (with no OT pay) and the company gets a little more productivity out of them (even if they goof off much of that time). It got so bad at EA that workers sued to reclaim OT and become hourly workers, so at least they get comped for their longer hours. So I think the egg freezing is part of that - it delays family life, which benefits the company possibly at the expense of the worker. 

Saturday, October 4, 2014

Leaked tapes reveal "regulatory capture" at the NY Fed

In some cases, managers observed behaviors indicating regulatory capture (in other words, when the regulator is kowtowing and in the pocket of the regulatee) as soon as 3 months after the agent was assigned to the bank. But the greater fault was the lack of policy/oversight to prevent this, and the managerial inaction once it was identified. Corruption and human nature will always be with us, so what is the point of a regulatory agency that can't even properly police itself?

The VA, ICE, ATF, NSA, IRS, Secret Service, CONGRESS... I know these recent negative cases may skew the overall assessment of gov't effectiveness, but do they represent a sufficient mass to conclude that our country is seriously broken? What is the point of paying for a gov't that delivers this level of performance? Well, we know that our gov't works extremely well for certain segments of our society, but our leaders need to remember that the middle class in aggregate represents a larger tax base and voting bloc than the rich (and will always be so).