LSE CEP LSE
Centre for Economic Performance (CEP)

CEP in the News 2004



The Observer

Class size crisis looms as more teachers quit
Britain's education system is short of tens of thousands of teachers as staff fed-up with long hours and low pay quit, according to a new study. According to the report's authors, Arnaud Chevalier and Peter Dolton, CEP, the UK primary school sector is likely to suffer the biggest shortage.

This article appeared in The Observer on December 19, 2004.
Link to article

Related Publications
Arnaud Chevalier and Peter Dolton, Teacher shortage: another impending crisis?, CentrePiece, Autumn 2004



New Book:

Multinational Firms in the World Economy
Are multinational enterprises the heroes or the villains of the globalized economy? Governments compete fiercely for foreign direct investment by such companies, but complain when firms go global and move their activities elsewhere. Multinationals are seen by some as threats to national identities and wealth and are accused of riding roughshod over national laws and of exploiting cheap labor. However, the debate on these companies and foreign direct investment is rarely grounded on sound economic arguments.

This book brings clarity to the debate. With the contribution of other leading experts, Giorgio Barba Navaretti and Anthony Venables assess the determinants of multinationals' actions, investigating why their activity has expanded so rapidly, and why some countries have seen more such activity than others.

The treatment is rigorous, yet accessible to all readers with a background in economics, whether students or professionals. Drawing out policy implications, the authors conclude that multinational enterprises are generally a force for the promotion of prosperity in the world economy.

Link to table of contents and sample chapter



BBC News Online

House prices boosted by low crime
Graffiti and vandalism have a stronger effect on house prices in some areas of London than more serious crimes such as burglaries, research has shown. Steve Gibbons, LSE, found that burglaries, which usually did entail higher costs for the victim, did nothing to depress house prices.

This article appeared in the BBC News Online on December 13, 2004.
Link to article

See also:
Link to International Herald Tribune article

Link to Financial Times article

Related Publications
Steve Gibbons, The Costs Of Urban Property Crime, 2004



The Guardian

Women pay for going part-time
Women changing to work part-time face an average 22 per cent cut in hourly earnings, according to research published today by the Department for Trade and Industry.

It found women switching from full-time work were often forced to make a downward occupational shift into lower grade work.

Those able to stay with the same employer or in the same occupation suffered little financially. But many were forced to accept a demotion as the price of flexibility in working hours.

The research, by Alan Manning and Barbara Petronogolo of the London School of Economics, found the "pay penalty" for working part-time in Britain was the biggest in Europe. "Evidence on job mobility shows that the UK has the highest rates of demotions when women move from full-time to part-time," they said.

This article appeared in the The Guardian on November 24, 2004.
Link to article

Link to Financial Times article

Related Publications
Alan Manning and Barbara Petrongolo The Part-time Pay Penalty, 2004



New Website:

Have you Scholar Googled yourself yet?
A new search tool by Google has been launched which allows any internet user to search for keywords in theses, books, technical reports, university websites and even traditional academic publications. The free system is being run initially in test form and spans the academic disciplines from medicine and physics to economics and computer science.

Google Scholar can be found at
http://www.scholar.google.com/



Book Launch

Challenges for Europe
In 2002 the Centre for Economic Performance was awarded a Queen’s Prize for Higher Education. To mark this award, the Centre ran a series of Queen’s Prize public lectures at LSE in 2003-4 by some of the world’s leading academic economists and commentators on the theme of the main current challenges for Europe. The lectures provided stimulating and controversial contributions to many of the key debates about the future of Europe, drawing also on American experiments and experience to throw light on both the possibilities and pitfalls that face us.

The lectures have been compiled into the book 'Challenges for Europe' edited by Hugh Stephenson and the launch will take place on On Monday 6th December 2004

Adair Turner (Merrill Lynch) and Willem Buiter (EBRD) will introduce the eight contributions to this collection of the edited lectures, which set out some fundamental questions about the economic development of Europe in this century. The event will be chaired Richard Layard.

The event starts at 6.30pm, and will be held in the 5th Floor of the LSE Research Laboratory Portugal Street, WC2A 2AE.

Places are limited so please RSVP to: Jo Cantlay, Centre for Economic Performance, email: j.m.cantlay@lse.ac.uk Related Links
Challenges for Europe

Queen's Anniversary Prize Lectures



International Herald Tribune

The Workplace: In Europe, the jobless don't move
A Eurostat report issued last week shows many countries have regions with both very low and very high unemployment rates, and thus very uneven economic performance. One puzzle emerging from the report is why Europeans in areas of high unemployment do not move in greater numbers to areas where workers are needed. As one specialist in labour economics at the EC notes:"Europeans do not move."

With comments from Henry Overman, specialist in economics and geography at LSE.

This article appeared in the International Herald Tribune on November 16, 2004.
Link to article

Related Publications:
Henry Overman and Pierre Philippe Combes, 2003, The Spatial Distribution of Economic Activities in the European Union in PDF format (533 Kb).

Henry Overman and Karen Helene Midelfart, 'Delocation and European Integration: Is Structural Spending Justified?' Published in Economic Policy, 35, 321-359. (Please email h.g.overman@lse.ac.uk for a copy of this paper).


USA Today

Unions begin to struggle in Europe
Europe's unionized workers, have been suffering a series of significant setbacks since June. With comment from David Metcalf, LSE.

With reference to CEP Working Paper No 1347 July 2004, 'British Unions: Resurgence or Perdition?' by David Metcalf.

Forthcoming Pamphlet for Work Foundation Provocations Series and chapter in the third volume of 'The Future of Trade Unions' in Britain series published by Routledge.

This article appeared in the USA Today on November 10, 2004.
Link to article


BBC News 24

What is a 'low skilled job'?
Call centres account for 14 per cent of jobs moved abroad, the CBI says. CBI boss Digby Jones has predicted that unskilled and semi-skilled employees will be out of a job within 10 years, largely because of UK firms relocating their telephone-based work abroad.

But can any job really be unskilled? With comment from Dr Hilary Steedman, LSE.

This article appeared in BBC News Online.
Link to article

Related Publications:
Hilary Steedman, Steve McIntosh and Andy Green, 2004 International Comparisons of Qualifications: Skills Audit Update in PDF format (785 Kb).

Skills for All research programme http://cep.lse.ac.uk/research/skills/skillsforall.asp


The Times Online

Miss in bliss, but Sir loses out
Is it financially worth your while to become a teacher? Professor Peter Dolton and Tsung-Ping Chung, of the Centre for Economic Performance at LSE, looked at teachers' current earnings and projected life earnings. More importantly, they also looked at what teachers could be earning if they were not teaching.

This article appeared in The Times Online on November 2, 2004.
Link to article

CEP papers related to the report:

Peter Dolton and Tsung-Ping Chung (2004), 'The Rate of Return to Teaching: How does it compare to other graduate jobs?' in PDF format (303 kb)


The Guardian

Americans living on borrowed time
"The jobless recovery since 2001 has created greater economic problems for Americans than the sluggish job performance of Europe in the 90s created for Europeans," according to Richard Freeman and William Rodgers. The article questions America's 'economic recovery' under Bush and quotes work from Richard Freeman.

This article appeared in The Guardian on October 25, 2004.
Link to article

CEP papers related to the report:

Richard Freeman and William Rodgers (2004), Jobless recovery: whatever happened to the great American jobs machine? in PDF format (48 kb)

Charts and Figures from 'Jobless recovery,' in PDF format (33 kb)

See also Richard Freeman's staff page


BBC News

Major reform of teen schooling
The Tomlinson Report proposes the biggest shake-up of secondary schooling in England for decades. The report quotes at some length research from the Skills for All programme, particularly on the disengagement of 14-16 year olds.

This article appeared in BBC News on October 17, 2004.
Link to article

CEP papers related to the report:

Hilary Steedman and Sheila Stoney (2004), 'Disengagement 14-16: Context and Evidence', available as CEP Discussion Paper No. 0654 in PDF format (264Kb)


The Guardian: E-Learning

Are we PC enough?
Reference to research by LSE with evidence that home ownership of a PC boosted teenagers' exam performance even when taking other economic factors into account.

This article appeared in the Guardian on October 6, 2004.
Link to article

CEP papers related to the report:

Schmitt, J and Wadsworth, J (2004), 'Is There An Impact of Household Computer Ownership on Childrens' Educational Attainment in Britain', available as CEP Discussion Paper No. 0625 in PDF format (131Kb)

Schmitt, J and Wadsworth, J (2004), 'Computer Assisted Exam Results', published in CentrePiece Summer 2004, in PDF format (410Kb)


ESRC Seminar Series

The UK's Productivity Gap: the latest evidence from economic research
Productivity is the key indicator of economic health - over the long haul, real income growth and hence living standards must follow the growth of labour productivity. But as a new ESRC report confirms, there remains a significant productivity gap between the UK and our main comparators - France, Germany and the United States. The report summarises the latest research findings on the nature and causes of the UK productivity gap and what policies might be effective in helping to close it.

Download the full report:
ESRC Seminar Series: The UK's Productivity Gap in PDF format (480Kb)

Other CEP articles related to the report:

Nickell, S and Van Reenen, J (2002), 'Technological Innovation and Economic Performance in the United Kingdom', available as CEP Discussion Paper No. 0488

Van Reenen, J (2004), 'Working Better,' in Centrepiece, Summer 2004. - John Van Reenen finds that British labour productivity still suffers from low investment in capital, basic skills and innovation.


Financial Times

Road to perdition
Trade unions are like the Red Queen in Lewis Carroll's Alice Through the Looking Glass, according to David Metcalf, LSE. They have to run harder just to stay in the same place.

With reference to CEP Working Paper No 1347 July 2004, 'British Unions: Resurgence or Perdition?' by David Metcalf. Forthcoming Pamphlet for Work Foundation Provocations Series.

This article appeared in the Financial Times on September 13, 2004.
Link to article


Consultant News

International study shows poor management is costing the UK economy £56 billion
According to calculations done by Professor Nick Crafts of LSE, this wasted time costs the UK economy £87 billion annually. Poor management alone is costing £56 billion.

This article appeared in the Consultant News on September 9, 2004.
Link to article


Newsweek

Behind the Smile
Can poor people be more self-satisfied than the rich? Richard Layard, co-director of the Centre for Economic Performance at LSE, believes that 'satisfying relationships' are a more important influence on one's happiness than income, which he argues is "not very important." As he sees it, a married man who does volunteer work is more apt to feel better about himself than a divorced career fanatic who's sweating out his next promotion.

This article appeared in Newsweek, July 24, 2004.
Link to Newsweek


The Economist

It's not always good to talk
Do communicative central banks make financial markets lazy? Reference to Hyun Song Shin, LSE, who share concerns that central banks are guilty of oversteering the markets.

This article appeared in The Economist, July 24, 2004.
Link to The Economist


Online recruitment, UK

Recruiters get lots of KICK but not enough KISS!
Heavy-handed agencies already facing staff shortages, risk losing key recruiters. Reference to Recruiting in Cyberspace Conference in June organised by the Centre for Economic Performance, LSE.

This article appeared in Online recruitment, UK, July 23, 2004.
Link to article


Sunday Herald

Shaky numbers make economic progress hard to figure
Scotland's lack of accurate GDP data and reliable growth figures means Adair Turner's argument is built on sand, Jim Mather argues. Turner's assertion also looks weak when we consider an earlier Allander lecture from Nicholas Crafts, LSE. Crafts said that if Scottish life expectancy was to be brought up to the relatively modest English level, the consumption equivalent of the welfare gain would be £2912 per person, or 21.3 per cent of the 2001 GDP.

This article appeared in the Sunday Herald July 5, 2004.
Link to article


THES & The Times

Class gap widens under Blair
The class divide in UK higher education widened during Tony Blair's first term in office as the children of Middle England reaped the benefits of university expansion, new research reveals. Anna Vignoles of the IoE, who conducted the research with Fernando Galindo-Rueda and Oscar Marcenaro-Gutierrez of the LSE, said: 'The message is that things are getting better, everybody is more likely to go into higher education, but the gap between rich and poor is widening.'

This article appeared in THES July 2, 2004.
Link to article (subscription needed)


This article appeared in The Times July 2, 2004.
Link to article


This article appeared in BBC News Online July 3, 2004.
Link to article


The Guardian

Home computers 'improve exam results'
Having a computer at home significantly boosts teenagers' exam results, according to research published today by LSE. With reference to work by Jonathan Wadsworth and John Schmitt

This article appeared in the Guardian June 29, 2004.
Link to article
See also Computer assisted exam results in the Summer 2004 edition of CentrePiece.


International Herald Tribune

Lack of skills saps British jobs
The British economy is in danger of losing jobs to lower-wage countries like China and the Czech Republic because too many British teenagers struggle to write and add. Comments from Stephen Nickell, LSE.

This article appeared in the International Herald Tribune June 12, 2004.
Link to article
See also U.K. education decline may hurt economy, Siemens, Microsoft Say in Bloomberg.


Western Mail

Bank guru joins Welsh think-tank
Member of the Bank of England's monetary policy committee Professor Stephen Nickell, LSE, has been appointed to a Welsh economic think-tank.

This article appeared in the The Western Mail June 9, 2004.
Link to article


Financial Times

Comments - Wolfgang Munchau: European demos
When Europeans go to the polls this week to elect a new parliament, do they go as citizens of the European Union or of their home states? European citizenship has been a legally enshrined right since the Maastricht treaty came into force in late 1993. But European citizenship is not the same as a European demos - an electorate bound by common values and purpose. Without a well functioning system of democratic controls, the eurozone suffers from what Stefan Collignon, professor at LSE, calls a collective action problem.

This article appeared in the The Financial Times, June 7, 2004.
Link to The Financial Times


A related article appeared in Business Day, South Africa, June 8, 2004.
Link to the article


New Statesman

How new Labour buried the dustbin people
Despite the claims of full employment, the grim reality is that more than two million are out of work, many of them on sickness benefit. Reference to a study printed four years ago under the title Non-working Classes by the Centre for Economic Performance at LSE, painted a grim portrait of public deprivation - four million adults and 2.6 million children living in poor households and the highest level of child poverty in Europe.

This article appeared in the The New Statesman, June 7, 2004.
Link to The New Statesman


Independent on Sunday

Robert Chote: Fated to repeat the income of their parents?
Pre-school cash could break the poverty cycle. Reference to research by Jo Blanden, LSE, on social mobility.

This article appeared in the The Independent on June 6, 2004.
Link to article


The World at One

BBC Radio 4
Interview with Dr Linda Yueh on the effect of China's demand on oil prices and the global economy.

This interview appeared on The World at One, May 24, 2004.
Link to World at One Website


Economic Outlook by David Smith: No early release from shackles of rising tax

Sunday Times
Tax is rumbling away again as a political issue. In next month's local elections the government looks likely to get punished both for Iraq and big rises in council-tax bills. Reference to Nick Crafts, LSE, who asked whether steam power had a bigger effect on economic growth than computers.

This article appeared in The Sunday Times, May 23, 2004.
Link to article


Former BOE policy maker Goodhart: interest rates, currency

Bloomberg
Charles Goodhart, professor at LSE and a former member of the Bank of England's Monetary Policy Committee, talks with Bloomberg's Edie Lush in London about the outlook for China's currency policy and the impact of a possible U.S. interest rate increase on foreign currencies.

This article appeared in Bloomberg, May 21, 2004.
Link to article


Public sector productivity data raise problems beyond measure

The Financial Times
Professor Nicholas Craft, LSE, on market services.

This article appeared in The Financial Times, May 14, 2004.
Link to article


Review 'paper over cracks'

Times Higher Education Supplement (THES)
Proposals unveiled this week to create a fairer and more transparent university admissions system will have limited impact on efforts to widen access. Reference to research by Fernando Galindo-Rueda and Anna Vignoles, LSE, presented at the Royal Economic Society reveals that middle-ability students from low-income households improved their chances of reaching higher education by 5 per cent during the 1970s and 1980s. By contrast, 12 per cent more middle-ability students from high-income families were able to get a degree during the same time frame.

This article appeared in The Times Higher Education Supplement (THES), April 09, 2004.
No link


Nikkei hits its highest since twin towers attack - but is Japan's revival for real?

The Independent
The IMF has described Japan's recovery as 'sustainable', though others disagree. Japan specialist Ron Dore, a senior research fellow at LSE, recently said he believes many of the changes that have taken place are cosmetic.

This article appeared in The Independent, April 07, 2004.
Link to article


Research examines the power of parental achievement

The Guardian
Reference to study by Fernando Galindo-Rueda, LSE, and Anna Vignoles, of the London Institute of Education, concluded that ability has become less important in determining how well children do at school over the past few decades. They say that policies in Britain allegedly designed to improve the educational performance of poor but able children have not necessarily helped this group the most.

This article appeared in The Guardian - Education, April 06, 2004.
Link to article


Benefit curbs 'increase crime'

The Daily Telegraph
The crackdown on unemployment benefit has led to an increase in crime as former claimants search for a new "income", says a study. The study by Prof. Stephen Machin and Olivier Marie of University College, London, was presented to the Royal Economic Society's Annual Conference 7 April in Swansea. It sheds new light on the role of benefits in affecting crime and points to important, if unintended, consequences of Government policy.

This article appeared in The Daily Telegraph, April 07, 2004.
Link to article


Challenge to No 10 claim that newcomers bring cash benefit

The Daily Telegraph
Downing Street's assertion yesterday that the economic benefits of immigration outweigh the costs is based on a Home Office research paper published in 2002.
Reference to letter by Lord Layard, a Labour peer and emeritus professor of economics at LSE, to the Financial Times questioning the received wisdom surrounding the benefits of immigration.

This article appeared in The Daily Telegraph, April 06, 2004.
Link to article


Concern over skills gap

Human Resources Centre
According to research conducted by Professor Stephen Nickell, the lower end of Britain's skills base is uniquely large in relation to the rest of northern Europe.

This article appeared in Human Resources Centre, March 31, 2004.
Link to article


European Economies: UK wage growth accelerates on bonuses

Bloomberg
Comment from Stephen Nickell, a member of the Bank of England's rate-setting committee and an academic at the London School of Economics.

This article appeared in Bloomberg, April 16, 2004.
Link to article


Flexibility can tie you up in knots

The Guardian
Larry Elliot of The Guardian looks at the issue of flexibility of labour markets. Quotes work by John Schmitt and Jonathan Wadsworth which investigated whether flexibility prices young people, the low-skilled and the long-term unemployed back into work, but concluded there was little to show that the US and the UK did any better with these strategies than countries riddled with "rigidities".

Reference to John Schmitt and Jonathan Wadsworth, "The UK and the USA" in David R. Howell, ed., Fighting Unemployment: The Limits of Free Market Orthodoxy, Oxford University Press, 2004. (FORTHCOMING).

This article appeared in The Guardian, March 22, 2004.
Link to article

See also John Schmitt and Jonathan Wadsworth,"Is the OECD Jobs Strategy Behind US and British Employment and Unemployment Success in the 1990s?" CEPA Working Paper 2002-06, April 2002.


Shopping centres

Newsnight
Newsnight explores whether the Government has made it easier for out of town shopping centres to get the planning green light?

Interview with John Van Reenen

This interview appeared on BBC Newsnight, March 22, 2004.
Link to programme [Read Audio Player needed] (Available Monday 22 March to Tuesday 23 March only)



Policies For Full Employment

CEP Press Release
On the eve of the EU's Spring Council Meeting, an independent study by four leading European economists makes three sets of recommendations to EU governments to deal with Europe's current high unemployment rates, which they describe as "intolerable".

The study Policies for Full Employment is published by the Department for Works and Pensions on Wednesday, March 24, 2004. It is by Lord (Richard) Layard, Stephen Nickell, Jaap de Koning and Niels Westergaard-Nielsen.

Link to Press Release.
Link to 'Policies for Full Employment' (From March 24, 2004 only)


Watch out: television makes us unhappy

The Independent
TV damages society in two ways: it makes people more violent and makes them less satisfied with what they have. Reference to the work and book soon to be published by Professor Richard Layard on happiness. Startling conclusions include the malign effect of television.

This article appeared in The Independent, February 25, 2004.
No Link.


Literacy hours cut gender divide

The Guardian
The primary school 'literacy hour' significantly improves pupils' achievement in English at GCSE, five years later, and helps close the literacy gap between boys and girls, new research shows. The findings, published today by the Centre for Economic Performance, LSE, will provide a boost for the government, whose much vaunted literacy and numeracy strategies have appeared to stall. Comments from Professor Stephen Machin and Sandra McNally.

This article appeared in The Guardian, February 16, 2004.
Link to article
Link to CentrePiece article where Stephen Machin and Sandra McNally present evidence on the effects of the 'literacy hour.' (Adobe Reader required).

[Graduate]

Graduates' job prospects brighten

BBC News Online
Job prospects and starting pay for graduates are set to improve in 2004, according to a survey by The Association of Graduate Recruiters (AGR). Jo Blanden comments on the findings and on graduate recruitment and salaries.

This interview appeared on BBC Breakfast, January 27, 2004.
Link to article
Link to Jo Blanden's interview. (RealPlayer needed)

[All Africa]

Who'll Save the CBN...?

All Africa
Reference to the Bank of England's nine-member Monetary Policy Committee including The Governor, Mervyn Allister King former professor of economics at LSE; alumni Rachel Lomax, Deputy Governor; Charles Richard Bean, former professor and head of economics at LSE; Stephen Nickel, part-time member of the committee and professor of economics at LSE; and Paul Tucker, President of the Royal Economic Society who also teaches at LSE.

This feature appeared in 'All Africa', January 22, 2004.
Link to article

[China]

China's economic growth prospects

BBC:
Interviewed for BBC World News (12 pm and evening news), BBC4 News, BBC Radio 4 PM show, BBC World Service, "East Asia Today" - Linda Yueh on China's economic growth prospects with the release of 2003 growth figures.

This interview appeared on the BBC, January 20, 2004.
No Link

[Linda Yueh]

Implication of China Steel Tariffs

BBC - World Business Report
TV interview with Linda Yueh on the implications of China's imposition of tariffs on steel from select countries.

This interview appeared on the BBC, January 14, 2004.
No Link


The leadership legacy that has kept GKN aloft

Financial Times
Why do some companies survive and others perish? Article by Sir Geoffrey Owen, a former editor of the Financial Times, is a senior fellow at LSE.

This feature appeared in The Financial Times, January 06, 2004.
Link to article.


Japan blue chips delisting from European bourses

Japan Times
Tom Kirchmaier, a lecturer in management at LSE, quoted on Japanese blue chips delisting from European stock exchanges.

This feature appeared in The Japan Times, January 06, 2004.
Link to article.