Latest News from CEP

Financial Times: The cost of expanding higher education is - zero

Wed, 8 Feb 2012

Letter: Tim Leunig of the LSE and Neil Shephard argue that the price of the expansion of higher education is "at 0 per cent in real terms". The government should increase the number of students at English universities as a matter of urgency.

This article appeared in Financial Times on 8 February 2012 link to article

Related links
Tim Leunig webpage
Globalisation Programme webpage

The Independent : It's not just the start-ups that are in need of a helping hand

Mon, 6 Feb 2012

Comment. When the government talks about 'small' businesses it appears to be focusing on start-ups rather than small but evolving businesses that have a far better chance of creating employment. Recently an LSE report concluded that abolition of the Grants for Business Investment Scheme was a mistake and that its partial replacement, a programme offering funding to bigger organisations, did not offer such good value.

This article appeared in The Independent on 6 February 2012 link to article

Related publications
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, SERC Discussion Paper No. 98 available here
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, Centre for Economic Performance Discussion Paper No. 1113 available here

Related links
Chiara Criscuolo webpage
Ralf Martin webpage
Henry Overman webpage
John Van Reenen webpage
SERC website webpage
Productivity and Innovation Programme webpage

The Economist: Can we ever trust instinct?

Sun, 5 Feb 2012

Another hotly debated issue that arises indirectly from psychological research is the use of measures of well-being to help guide policy. In the UK the intellectual leader of the movement is my friend Richard Layard and he and I donâ€™t quite agree on the direction this should take. He is much more of an optimist than I am, and he would favour measures that would improve the happiness of the population, whereas I am more of a pessimist and believe that it should be the objective of policy to reduce suffering, which is not the same thing.

This article appeared in The Economist on 5 February 2012 link to article

Related publications
Happiness: Lessons from a New Science Richard Layard Penguin books, 2005
Measuring Subjective Wellbeing for Public Policy Paul Dolan, Richard Layard, and Robert Metcalfe (2011), Office of National Statistics, February

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Digital Journal: Greek MP's raise the issue of German war reparations

Sun, 5 Feb 2012

In an article in German paper Der Spiegel in June 2011, eminent historian Albrecht Ritschl a professor at the London School of Economics, criticized Germany for their hostility towards Greece in the current...

This article appeared in Digital Journal on 5 February 2012 link to article

Also in:
El Mundo link to article

Related links
Albrecht Ritschl webpage
Macro Programme webpage

The Financial Times: Back job creators, government urged

Fri, 3 Feb 2012

Separate research by the Centre for Economic Performance and the Spatial Economics Research Centre concluded that government grants should focus on small businesses in poor areas, as these have the potential to create most jobs.

This article appeared in The Financial Times on 3 February 2012 link to article

Related publications
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, SERC Discussion Paper No. 98 here
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, Centre for Economic Performance Discussion Paper No. 1113 is available here

Related links
Chiara Criscuolo webpage
Ralf Martin webpage
Henry Overman webpage
John Van Reenen webpage
SERC website webpage
Productivity and Innovation Programme webpage

BBC World Service : The World Today

Thu, 2 Feb 2012

Linda Yueh interviewed on Angela Merkel's visit to China

This interview was broadcast on BBC World Service on 2 February 2012 link

Related links
Linda Yueh webpage
Globalisation Programme webpage

The Times Online: Davos Day 3: Europe not out of the woods yet

Thu, 2 Feb 2012

Eric Schmidt, executive chairman of Google, will discuss the changes wrought by technology upon the global economy with Professor Christopher Pissarides of the LSE.

This article appeared on the Times Online on 2 February 2012 (no link avaliable)

Related links
Christopher Pissarides webpage
Macro Programme webpage

The Sales Director.com: Small businesses ‘creating many new jobs'

Thu, 2 Feb 2012

The Centre for Economic Performance at the London School of Economics study revealed that businesses which received grants worth up to ten per cent of the cost of a business project, or around Â£5,000, created seven per cent more local jobs than if the grant had not been made.

This article appeared in The Sales Director.com on 2 February 2012 link to article

Related publications
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, SERC Discussion Paper No. 98 is available here
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, Centre for Economic Performance Discussion Paper No. 1113 is available here

Related links
Chiara Criscuolo webpage
Ralf Martin webpage
Henry Overman webpage
John Van Reenen webpage
SERC website webpage
Productivity and Innovation Programme webpage

MSN UK (Web): Large firm grants 'waste of money'

Wed, 1 Feb 2012

Asked why smaller businesses were the only ones taking advantage of the subsidies, Professor John Van Reenen said: "It may be that larger firms are manipulating the system and just pocketing the subsidy or it may simply be that grants have a bigger effect on small firms as they are much more cash-strapped." The authors of the study, called The Causal Effects of an Industrial Policy, also warned the Government that subsidies could put a dent in productivity figures because they "probably" help less efficient businesses grow. Their work at LSE's Centre for Economic Performance and Spatial Economics Research Centre looked at the impact of the subsidies between 1986 and 2004.

This article appeared on MSN UK (Web) link to article

Also in
Huffington Post: Politics LatestNews
Grants For Poorer Areas 'Wasted' link to article

Related publications
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, SERC Discussion Paper No. 98 is available here
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, Centre for Economic Performance Discussion Paper No. 1113 is available here

Tax Assist Accountants: Grants work better at small firms, report finds

Wed, 1 Feb 2012

The London School of Economics (LSE) has argued that grants to larger firms are a "waste of taxpayers' money". Professor John Van Reenen said the findings suggest that larger firms could be misusing the system and not using the funds as the government intends.

This article appeared in Tax Assist Accountants on 1 February 2012 link to article

Related publications
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, SERC Discussion Paper No. 98 is available here link to article
The Causal Effects of an Industrial Policy by Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen, Centre for Economic Performance Discussion Paper No. 1113 is available here

The Guardian: Give students the right to switch university

Wed, 1 Feb 2012

The 'stick with it or quit' model can't continue, allowing transfers will benefit both students and universities, says Gill Wyness.

This article appeared in The Guardian on February 1, 2012
Link to article

Related links
Gill Wyness webpage
Education and Skills Programme webpage
Gill Wyness CEP Publications webpage

The Scotsman: Large firm grants ‘waste of money'

Wed, 1 Feb 2012

After looking at every manufacturing plant in England, Wales and Scotland before and after they received government support, academics based at the London School of Economics (LSE) argue that grants to larger firms are a waste of taxpayers' money.

This article appeared in The Scotsman on February 1, 2012
Link to article

Also in
West Lothian Herald and Post
Large firm grants 'waste of money'

Related publications
The Causal Effects of an Industrial Policy, Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen
SERC Discussion Paper No. 98, January 2012
The Causal Effects of an Industrial Policy, Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen
Centre for Economic Performance Discussion Paper No. 1113, January 2012

Related links
Chiara Criscuolo webpage
Ralf Martin webpage
Henry Overman webpage
John Van Reenen webpage
SERC website
Productivity and Innovation Programme webpage

The Telegraph: Grants for small businesses create jobs in deprived areas

Wed, 1 Feb 2012

Giving small firms in deprived areas £5,000 grants created "significant" numbers of new jobs and investment, an extensive study covering two decades has found. Large companies, in contrast, pocketed the grants and created few new jobs, said the Centre for Economic Performance at the London School of Economics.

This article appeared in The Daily Telegraph on February 1, 2012 link to article

Related publications
The Causal Effects of an Industrial Policy, Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen
SERC Discussion Paper No. 98, January 2012
The Causal Effects of an Industrial Policy, Chiara Criscuolo, Ralf Martin, Henry Overman and John Van Reenen
Centre for Economic Performance Discussion Paper No. 1113, January 2012

Related links
Chiara Criscuolo webpage
Ralf Martin webpage
Henry Overman webpage
John Van Reenen webpage
SERC website
Productivity and Innovation Programme webpage

Labour Party: Rethinking mental health in the twenty-first century – speech by Andy Burnham

Tue, 31 Jan 2012

Andy Burnham MP, Labour's Shadow Health Secretary, in a speech to the Centre for Social Justice, said:I recently shadowed a GP in Coventry and was surprised by the number of time he referred to IAPT. As he said, a huge step forward and an avenue that simply wasn't available only a few years ago. It came about because of Lord Richard Layard's work, who made both the social justice case, but also the economic case.

Posted on the Labour Party website on January 31, 2012. Link to the speech

Related publications
Happiness: Lessons from a New Science, Richard Layard. Penguin books, 2011 (second edition) Details
Measuring Subjective Wellbeing for Public Policy, Paul Dolan, Richard Layard, and Robert Metcalfe (2011), Office of National Statistics, February

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Researchwebpage

National Review.com: Let us now praise private equity

Mon, 30 Jan 2012
In a 2010 paper, the economists Nicholas Bloom of Stanford and John Van Reenen of the London School of Economics offered evidence that differences in management practices explain a great deal of why some countries are more productive than others.

This article was published on National Review.com on January 30, 2012 Link to article

Related publications
Why do Management Practices Differ Across Firms and Countries?, Nick Bloom and John Van Reenen, Centre for Economic Performance Occasional Paper No.26, September 2010
Does Competition Raise Productivity Through Improving Management Quality?, John Van Reenen, Centre for Economic Performance Discussion Paper No.1036, December 2010

Related links
Nicholas Bloom webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

The Scotsman: Do parents need to learn that happiness is not a birthright?

Sun, 29 Jan 2012
Ever since the economist (and last Labour governmentâ€™s happiness tsar) Richard Layard wrote his book -Happiness: Lessons From A New Science In 2006 - we seem to have been in the grip of a cult of happiness.

This article appeared in the Scotsman on 29 January 2012 link to article

Related publications
Happiness: Lessons from a New Science, Richard Layard. Penguin books, 2011 (second edition) Details

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness Research webpage

Financial Times: No growth but the LSE is looking for it

Sat, 28 Jan 2012
An interview with Tim Harford, states that the LSE has launched a Growth Commission in order to assess ways in which the economy can be boosted.

This article appeared in the Financial Times on January 28, 2012 Link to article

Related links
LSE Growth Commission launch event was held on Monday 23 January 2012
Details of the event and the Commission, available here

The Times: Education the key to success

Sat, 28 Jan 2012
The jobs created by companies such as Google have not matched the number of manufacturing positions lost as a result of globalisation and the emergence of low-cost economies.Christopher Pissarides, of the London School of Economics, said: "The digital revolution is a revolution in labour markets as well as a big technological and industrial change."He said that as people became more productive as a result of the digital revolution, they were better rewarded as a result. This was creating a segregated workforce of people who benefited from the digital economy and those who provided them with basic personal services. "We are creating a segregation of jobs, and the public policy challenge is how to deal with the inequality that arises in such a system," he said.

This article appeared in The Times on January 28, 2012 [No link available]

Related links
Christopher Pissarides webpage
Macro Programme webpage

Reuters: The one percent war

Fri, 27 Jan 2012
Brian Bell and John van Reenan, two economists at the Centre for Economic Performance at the London School of Economics, have done a careful study of Britain's super-rich. Peering inside the top...

This artticle appeared on Reuters on 27 January 2012 link to article

Also in
WTAQ News Talk
Reuters Magazine: The one percent war link to article
Yahoo! News
Reuters Magazine: The one percent war link to article

Related publications
Firm Performance and Wages: Evidence from Across the Corporate Hierarchy Brian Bell and John Van Reenen, Centre for Economic Performance Discussion Paper No.1088, November 2011

Related links
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

The Press Association: Impact of fees increase monitored

Fri, 27 Jan 2012
An independent commission has been established to monitor the impact of increased university fees in England over the next three years, it has been announced. The four members of the panel at present are: Mr Hutton, principal of Hertford College, Oxford University, and executive vice-chair of the Work Foundation; Stephen Machin Professor of Economics at University College London and research director of the Centre for Economic Performance at the London School of Economics; Libby Purves, writer, radio broadcaster and Times chief theatre critic; and Sir Peter Lampl, chairman of the Sutton Trust and the Education Endowment Foundation.

This article appeared in the Press Association on 27 January 2012 link to article

Related links
Stephen Machin webpage
Labour Markets Programme webpage

The Press Association: Impact of fees increase monitored

Fri, 27 Jan 2012

Launch of LSE Growth Commission: Press Release

Fri, 20 Jan 2012

The LSE Growth Commission has been created to provide an authoritative input to a growth strategy for the United Kingdom. The commission will report within one year and along the way it will take evidence from leading figures from academia, business and policy.
To launch the commission, Larry Summers (Harvard and former US Treasury Secretary) and Steve Nickell (Nuffield College Oxford and OBR) will give evidence on how to improve the growth performance of the UK economy in the medium to long-term.

For more information on the launch event please go to event webpage
Download the press release (PDF)
Related Links
LSE Growth Commissioner biographies (PDF)
Institute for Government webpage

Reuters Africa: Reuters Magazine – Chrystia Freeland: The one percent war

Tue, 17 Jan 2012
Brian Bell and John van Reenan two economists at the Centre for Economic Performance at the London School of Economics, have done a careful study of Britain's super-rich. Peering inside the top 1 percent, they found a distribution almost as skewed as that within the economy as a whole - the top 2 percent of the 1 percent captured 11 percent of the wage share of this top slice overall in 1998 and 13 percent in 2008.

This article appeared on Reuters Africa on 17 January 2012 link to article

Related publications
Firm Performance and Wages: Evidence from Across the Corporate Hierarchy Brian Bell and John Van Reenen, Centre for Economic Performance Discussion Paper No.1088, November 2011

Related links
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

BBC News: Is happiness a government issue?

Mon, 16 Jan 2012
Professor Philip Booth of the IEA and Lord Layard of the Centre for Economic Performance at the London School of Economics discuss whether the government can legislate for happiness.

This interview was broadcast on BBC News on 16 January 2012 link

Related links
Richard Layard webpage
Wellbeing Programme webpage

Morgan Hill Times (California, USA): The economics of happiness: just how much is enough?

Mon, 16 Jan 2012
Since Elvis made his first appearance on the Ed Sullivan show in 1956, the average American's disposable income has tripled from $9,431 to $27,792, according to data from the Bureau of Economic Analysis. However, as reported in the book 'Happiness' by Richard Layard our level of happiness hasn't increased at all during that time.

This article appeared in the Morgan Hill Times on 16 January 2012 link to article

Related publications
Happiness: Lessons from a New Science (2005) Richard Layard, Penguin Details

Related links
Richard Layard webpage
Wellbeing Programme webpage

El Pais: Heredamos la felicidad?

Sun, 15 Jan 2012
We inherit happiness? (translation)
These figures are significantly greater than those collected by the last study carried out to date, in charge of the Jan-Emmanuel De Neve researcher, University of London, together with colleagues at Harvard and the University of California at San Diego School of medicine, examining questionnaires from respondents numbering almost one thousand twins, half of them identical. "Our data suggest that one-third of happiness can be explained through an inherited genetic lottery of parents", says De Neve to El PaÃs Semanal. Despite this reduction in the influence of genes, Neve supports a finding that could extend to all people: that we have a minimum threshold of happiness, influenced by biology, more or less according to each individual. A basic level to which we return after a stroke of luck as a lottery prize, or a disgrace, or after an accident with disastrous consequences.

This article appeared in El Pais on 15 January 2012 link to article

Jan-Emmanuel De Neve webpage
Wellbeing webpage

The Financial: Skilled migrants have little direct impact on UK housing market

Thu, 12 Jan 2012
The MAC [Migration Advisory Committee] also commissioned a report from LSE's Centre for Economic Performance on the impact of migration on crime. The report found that migrants from the EU accession countries and those entering under work-related programmes are less likely to be involved with property crime than UK natives.

This article appeared in The Financial link to article

Related publications
'Immigrant Enclaves and Crime' Brian Bell and Stephen Machin, Centre for Economic Performance Discussion Paper No.1104, December 2011
'Crime and Immigration: Evidence from Large Immigrant Waves' Brian Bell, Francesco Fasani and Stephen Machin, Centre for Economic Performance Discussion Paper No.984, June 2010

The New York Times: In Big Data, Potential for Big Division

Thu, 12 Jan 2012
David Autor, an economist at the Massachusetts Institute of Technology, has done groundbreaking research on the 'polarizing' effect of technology on the labor market: his bottom line is that it has been good for people at the top and not had much of an effect on people doing hands-on jobs at the bottom. But it has hollowed out what used to be the middle. Studying the same phenomenon in the United Kingdom, the economists Maarten Goos and Alan Manning have come up with an evocative term for what is happening, the division of work into 'lousy and lovely jobs.'

This article appeared in the New York Times on 12 January 2012 link to article

Related Links
Alan Manning webpage
Labour Markets webpage

Times Education Supplement: Painting over cracks is not enough for apprentices

Fri, 6 Jan 2012
In countries where apprenticeships are far more popular with employers than in England, participants are expected to carry out nine times the amount of training: a minimum of 900 hours compared to just 100 in this country. That is one of the headline figures of a new policy analysis that lays bare the "dysfunctional funding and delivery model" of apprenticeships in England. Written by Hilary Steedman senior research fellow at the London School of Economics, it returns to the original announcement of modern apprenticeships in 1993 and notes that the then Conservative government's pledge of 40,000 level 3 apprenticeship qualifications each year has not been met in 18 years.

This article appeared in the Times Education Supplement on 6 January 2012 link to article

Related publications
Apprenticeship Policy in England: Increasing Skills versus Boosting Young Peopleâ€™s Job Prospects Centre for Economic Performance Policy Analysis by Hilary Steedman, published December 2011 link to publication

Related links
Hilary Steedman webpage
Education and Skills Programme webpage
Hilary Steedman CEP publications webpage

The New Statesman: Sorry Peter, the facts of life aren't Conservative

Fri, 6 Jan 2012
If you want a more nuanced and less gloomy take on the UK's economic performance between 1997 and 2010, check out this recent report from the LSE's Centre for Economic Performance.

This article appeared in the New Statesman on 6 January 2011 link to article

Related publications
Firm Performance and Wages: Evidence from Across the Corporate Hierarchy Brian Bell and John Van Reenen, Centre for Economic Performance Discussion Paper No.1088, November 2011

Related links
Anna Valero webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

Financial Times: In a world of squeezed incomes, business aliens quietly thrive

Fri, 6 Jan 2012
Research by two LSE academics detected a strong link between pay and performance, though it also found that executive pay growth fell more slowly than it increased in good times.

This article appeared in the Financial Times on 6 January 2012 link to article

Related publications
"Firm Performance and Wages: Evidence from Across the Corporate Hierarchy" Brian Bell and John Van Reenen, Centre for Economic Performance Discussion Paper No.1088, November 2011

Related links
Brian Bell webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

DCSF.gov.uk: Michael Gove speech on academies

Thu, 5 Jan 2012
In a speech given yesterday (4 January 2012) at Haberdashers' Aske's Hatcham College, Michael Gove cited "a landmark assessment" of the Academy Schools scheme by Steve Machin and James Vernoit.

This article appeared on the DCSF.gov.uk on 5 January 2012 link to article

See also
Conservative Party
Michael Gove: Who are the ideologues now? link to article

Related publications
"Changing School Autonomy: Academy Schools and their Introduction to England's Education" Stephen Machin and James Vernoit, Centre for the Economics of Education Discussion Paper No.123 April 2011
"Academy Schools: Who Benefits?" Stephen Machin and James Vernoit, Article in CentrePiece Volume 15, Issue 2, Autumn 2010
"A Note on Academy School Policy" Centre for Economic Performance Policy Briefing, Stephen Machin and James Vernoit, July 2010

Related links
Stephen Machin webpage
James Vernoit webpage
Education and Skills Programme webpage
Centre for the Economics of Education webpage