Labor Economists Go to Washington: Evolution of the Chief Economist’s Post at the Department of Labor

Abstract

A common refrain during the Clinton administration was “It’s the economy, stupid.” It was presumed that members of the Clinton cabinet had to contribute to economic policy development and evaluation to have influence within the administration.During the 1992–1993 presidential transition and the early days of the Clinton administration, Secretary of Labor Robert Reich looked for people with technical expertise in labor economics to give him information and advice on economic policy. Reich thought such advice was needed to help fashion economic policies congenial to his department. After all, other major cabinet agencies, such as the Treasury and Commerce departments, already had considerable in-house expertise on economics.Reich asked Lawrence Katz, a Harvard University professor and economic adviser to the Clinton campaign, to become the first “chief economist” in the Department of Labor (DOL). The position, which did not require congressional approval, quickly gained considerable influence on legislation, departmental initiatives, and program administration.