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Reuters

Brexit referendum spurs British companies into investing in EU - research

The referendum result led to a 12 percent increase in foreign direct investment transactions from Britain into the EU between mid-2016 and September 2018, researchers from the London School of Economics' Centre for Economic Performance said.
Related Links:
Reuters - Brexit referendum spurs British companies into investing in EU - research

Voting with their Money: Brexit and Outward Investment by UK Firms

CEP Trade

Holger Breinlich webpage

Elsa Leromain webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 11/02/2019      [Back to the Top]

Pro Market (Blog)

Rents and Inclusive Growth: A Decline in Rent Sharing Implies Growing Income Inequalities

A new study looks at the long-run evolution of rent sharing between companies and workers in the UK and finds that rent sharing has significantly decreased between 2001 and 2016, particularly among companies that enjoy monopolistic markups.

Related Links:
Pro Market (Blog) - Rents and Inclusive Growth: A Decline in Rent Sharing Implies Growing Income Inequalities

Rent Sharing and Inclusive Growth

CEP Labour Markets CEP Community

Brian Bell webpage

Pawel Bukowski webpage

Stephen Machin webpage



News Posted: 08/02/2019      [Back to the Top]

The Independent

Brexit already hitting UK household finances due to higher prices, study shows

The average worker has had to spend more than £404, equivalent to more than a week's wages, in the first year after the Brexit vote, according to a report by the Centre for Competitive Advantage in the Global Economy (CAGE). The findings suggested the average household had to spend £7.74 more per week to afford the same purchases the year after the referendum.

Economics professor Dennis Novy, who contributed to the report, said: "It is clear that the average UK household is already paying the price for voting to leave the EU".

Troeger, Vera E. and Egerton-Warburton, Diana (eds.) (2019), Which way now? Economic policy after a decade of upheaval: A CAGE Policy Report (London: Social Market Foundation)

Related Links:
The Independent - Brexit already hitting UK household finances due to higher prices, study shows

The Brexit Vote, Inflation and UK Living Standards

CEP Trade

Holger Breinlich webpage

Elsa Leromain webpage

Dennis Novy webpage

Thomas Sampson webpage



News Posted: 08/02/2019      [Back to the Top]

The Atlantic

How Globalization Saved the World and Damned the West

MGI was putting its finishing touches on the report in early 2016, but held its publication for the Brexit vote in March. "We weren't surprised by the outcome," Manyika told me. "We had been sitting on this research showing widespread resentment toward globalization as a result of people feeling like they were being left behind." In June, MGI published the paper under the title "Poorer Than Their Parents." That same week, the labor economists Brian Bell and Stephen Machin published a separate analysis of the Brexit outcome. The economic statistic most closely aligned with "Leave" votes wasn’t unemployment or income at the local level. It was poor wage growth.

'Brexit Beckons: Thinking ahead by leading economists.' VoxEU eBook , June 2016.

Related Links:
The Atlantic - How Globalization Saved the World and Damned the West

CEP Labour Markets CEP Community

Brian Bell webpage

Stephen Machin webpage



News Posted: 07/02/2019      [Back to the Top]

LSE Business Review (Blog)

The challenge of dealing with ‘double disruption’: Brexit and technology

The UK needs a new era of policy activism with a 'future of good work' focus, write Christopher Pissarides, Anna Thomas and Josh De Lyon.

Related Links:
LSE Business Review (Blog) - The challenge of dealing with ‘double disruption’: Brexit and technology

The Brexit Vote, Inflation and UK Living Standards

The Costs and Benefits of Leaving the EU: Trade Effects

The impact of Brexit on foreign investment in the UK

CEP Trade

Josh De lyon webpage



News Posted: 06/02/2019      [Back to the Top]

VOX CEPR Policy Portal

Winners, losers and future prospects: The economic geography of transition countries

Klaus Desmet, David Krisztian Nagy, Dzhamilya Nigmatulina, Nathaniel Young

The economic geography of transition economies has changed dramatically over the last quarter century, with large urban areas growing fast and many smaller places facing declining populations. Using a high-resolution spatial growth model, this column projects the transition economies as a whole to perform economically well over the next decades, especially the region’s densest places. Large-scale infrastructure projects such as the Belt and Road Initiative will have a positive impact, but not more so than modest reductions of general trade frictions.

Related Links:
VOX CEPR Policy Portal - Winners, losers and future prospects: The economic geography of transition countries

CEP Urban and Spatial Programme

Dzahmilya Nigmatulina webpage



News Posted: 04/02/2019      [Back to the Top]

BBC Radio 4

Brexit: A Guide for the Perplexed

Snippet: ...ther revolutionary thing called Brexit the EU has always been a unique experiment and shared sovereignty and no-one has ever tried to leave before well apart from Greenland sort of in 1985 Professor Swati Dhingra of the London school of economics I think one of the...

Related Links:
BBC Radio 4 - Brexit: A Guide for the Perplexed

CEP Trade

Swati Dhingra webpage



News Posted: 04/02/2019      [Back to the Top]

The Australian

Ball back in Brussels' court on Irish border sticking point

The Centre for Economic Performance estimates that the long-term impact of no deal on Ireland is almost as bad as for the UK. But, locked inside the EU, it cannot subsidise industries or change tariff schedules and its central bank has no power to cut interest rates if growth slows once ties with its biggest trading partner are severed. That goes double when it comes to the border.

Related Links:
The Economic Consequences of the Brexit Deal

CEP Trade

Thomas Sampson webpage



News Posted: 04/02/2019      [Back to the Top]

Health Affairs

Hospital Prices Grew Substantially Faster than physician prices from 2007 to 2014


Related Links:
Health Affairs - Hospital Prices Grew Substantially Faster than physician prices from 2007 to 2014

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage



News Posted: 04/02/2019      [Back to the Top]

Health Affairs

Variation in Health Spending Growth For The Privately Insured From 2007 To 2014


Related Links:
Health Affairs - Variation in Health Spending Growth For The Privately Insured From 2007 To 2014

The Price Ain't Right? Hospital Prices and Health Spending on the Privately Insured

CEP Growth

Zack Cooper webpage

John Van reenen webpage



News Posted: 04/02/2019      [Back to the Top]

The Times

Brexit will go to the brink, because everyone has something to lose

Ireland has a more intractable problem, however. The Centre for Economic Performance estimates that the long-term impact of no deal on Ireland is almost as bad as for the UK. But, locked inside the EU, it cannot subsidise industries or change tariff schedules and its central bank has no power to cut interest rates if growth slows once ties with its biggest trading partner are severed. That goes double when it comes to the border.

Related Links:
The Economic Consequences of the Brexit Deal

CEP Trade

Thomas Sampson webpage



News Posted: 02/02/2019      [Back to the Top]

The Times

Ban mobile phone use in schools

Almost all schools are thought to have some controls over mobile phone use. Some ban them outright and others restrict their use in lessons or during playtime. A 2015 study by the London School of Economics found that banning them resulted in test scores rising by more than 6 per cent.

Related Links:
The Times - Ban mobile phone use in schools

In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 02/02/2019      [Back to the Top]

Economics of Education Review (Journal)

The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen

Volume 68, February 2019, Pages 53-67

The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero, John Van Reenen. NBER Working Paper No. 22501

How universities boost economic growth Anna Valero, John Van Reenen
Related Links:
Economics of Education Review (Journal) - The Economic Impact of Universities: Evidence from Across the Globe, Anna Valero and John Van Reenen

The Economic Impact of Universities: Evidence from Across the Globe

CEP Growth

Anna Valero webpage

John Van reenen webpage



News Posted: 01/02/2019      [Back to the Top]

New York Times

The ‘Rotten Equilibrium’ of Republican Politics

There are significant parallels between voting patterns for and against Brexit and the patterns in the 2016 and 2018 elections in this country.
In a separate 2017 paper, "Who Voted For Brexit", Fetzer and two fellow economists at the University of Warwick, Sascha O. Becker and Dennis Novy, found that "in particular, fiscal cuts in the context of the recent UK austerity program are strongly associated with a higher Vote Leave share".

Related Links:
New York Times - The ‘Rotten Equilibrium’ of Republican Politics

Who Voted for Brexit? A Comprehensive District-Level Analysis

CEP Trade

Dennis Novy webpage



News Posted: 30/01/2019      [Back to the Top]

Huff Post

The Real Problem Isn't Executive Pay, It's That Everyone Else Is Underpaid

One little-known study could, however, help shed light on where the problem really lies. According to Professors Bell and Van Reenen of the LSE, the real issue is not that CEO pay has been inflated, but that worker pay has simply not kept pace. And not merely by a few percent here or there, but by a whopping 15 times. Every year. With this kind of disparity you can see it doesn't take long for a yawning pay chasm to develop, which then compounds exponentially.
Related Links:
Huff Post - The Real Problem Isn't Executive Pay, It's That Everyone Else Is Underpaid

Firm Performance and Wages: Evidence from Across the Corporate Hierarchy

CEP Growth CEP Labour Markets

Brian Bell webpage

John Van reenen webpage



News Posted: 29/01/2019      [Back to the Top]

ITPro

The fund will be split between fifteen projects which will all aim to encourage SMBs to adopt the latest technologies

"Lessons from this RCT will provide valuable insight into the most (a) effective and (b) cost-effective means of driving adoption of AI; whether education and convening is sufficient to drive adoption or whether a degree of 'hand-holding' is needed when seeking to drive adoption of perceived cutting edge technologies, said Dr Anna Valero, economist and researcher at LSE.
Related Links:
ITPro - The fund will be split between fifteen projects which will all aim to encourage SMBs to adopt the latest technologies

CEP Growth

Anna Valero webpage



News Posted: 29/01/2019      [Back to the Top]

VOX

Subsidising labour hoarding in recessions: New evidence from Italy’s Cassa Integrazione

By Giulia Giupponi and Camille Landais
Labour hoarding - the practice of retaining excess employees during a negative shock - could potentially help firms avoid re-hiring and training costs when economic conditions improve and act as a form of insurance for workers. This column uses Italian micro data to show how labour hoarding in the form of short-term work programmes can be beneficial despite being ineffective in the long term.

Related Links:
VOX - Subsidising labour hoarding in recessions: New evidence from Italy’s Cassa Integrazione

Subsidizing Labor Hoarding in Recessions: The Employment & Welfare Effects of Short Time Work

CEP Labour Markets

Giulia Giupponi webpage



News Posted: 25/01/2019      [Back to the Top]

New York Times

Why Six Months Seems to Be the Sweet Spot for Paid Parental Leave

Claudia Olivetti at Boston College and

Barbara Petrongolo

at Queen Mary University of London found little evidence that extended leaves had a positive effect on women's employment or earnings - but found that subsidized child care and preschool did. "You want to make it easier for mothers to work, and when you talk about paid leave in isolation, the issue is who is going to take care of the baby after, and how much does it cost?" Ms. Olivetti said.

Related Links:
The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries

CEP Labour Markets

Barbara Petrongolo webpage



News Posted: 25/01/2019      [Back to the Top]

Reader's Digest

You’ll Be Happiest During These Two Years of Your Life, According to Science

Snippet: ... of you. Science says so! Think you have already reached your peak in life? You might want to think again. We want to share some good news with you: Your happiest years are still ahead! According to research from the London School of Economics and Political Science ...

Related Links:
Reader's Digest - You’ll Be Happiest During These Two Years of Your Life, According to Science

Unmet Aspirations as an Explanation for the Age U-Shape in Human Wellbeing

CEP Wellbeing



News Posted: 25/01/2019      [Back to the Top]

The State of Working Britain Blog

Measure for Measure: Has the Government Already Met its Net Immigration Target Without Noticing?

The State of Working Britain blog is edited by Paul Gregg and Jonathan Wadsworth
It may well be that we no longer care about estimating the number of immigrants in the UK (though this is doubtful). Government policy (at the moment) still appears to be based around the notion that getting net immigration down below 100,000 is the thing to do. As such it needs a measure of how well it is doing on this front.

Related Links:
The State of Working Britain Blog - Measure for Measure: Has the Government Already Met its Net Immigration Target Without Noticing?

Immigration and the UK Economy

CEP Labour Markets

Jonathan Wadsworth webpage



News Posted: 24/01/2019      [Back to the Top]

Lancashire Telegraph

Burnley MP doubts the case for second Euro-referendum

A special report on Brexit and Pendle published by the London School of Economics this week reveals: "There is a clear consensus that if there was a second referendum held today, Pendle's vote would be the same or even more strongly Leave."

Read the report: "Debating Brexit at a Local Level"

Related Links:
Lancashire Telegraph - Burnley MP doubts the case for second Euro-referendum

CEP Trade

Josh De lyon webpage



News Posted: 21/01/2019      [Back to the Top]

The Financial Times

Three strategies for left-behind places

The first is a strategy of reversal. This consists of interventions that aim to offset or compensate for the technological and market dynamics that cause cost disadvantages for value creation in left-behind places - place-based investment subsidies, tax credits and the like. This is the most traditional type of industrial policy, and one that is more often marked by failure than success. But they can work: Chiara Criscuolo and her colleagues have examined European investment subsidies for areas that lag behind and found that greater subsidies can increase manufacturing investment and employment — but only by small, existing companies, not the biggest and most productive ones, nor new start-ups.

Related Links:
The Financial Times - Three strategies for left-behind places

Some Causal Effects of an Industrial Policy

CEP Growth CEP Trade CEP Urban and Spatial Programme

Chiara Criscuolo webpage

Ralf Martin webpage

Henry Overman webpage

John Van reenen webpage



News Posted: 21/01/2019      [Back to the Top]

iPolitics.ca

Brexit chaos belies Quebec sovereigntist promise of painless breakup

Long term is worse. "Our best estimate is that GDP per capita will be 6.3 to 9.5 per cent per year lower than it would be if we were to remain in the EU," wrote John Van Reenen, today an economics professor at MIT. "At the mid-point of this range, this means an eight per cent real pay cut: about four years of 'normal' wage gains wiped out in a deliberate act of economic self-harm."

Related Links:
iPolitics.ca - Brexit chaos belies Quebec sovereigntist promise of painless breakup

CEP Growth

John Van reenen webpage



News Posted: 18/01/2019      [Back to the Top]

The Times

The force of gravity on Britain's trade

But economists at the LSE argue that Mr Minford made no allowance for differences in quality among the manufactured goods being considered (Economists for Brexit: A Critique, Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano, and John Van Reenen.) This is the crux of whether or not the EU can be seen as protectionist in manufactured goods. If goods of the same quality cost more in the EU than outside it, then there is a strong case for calling the bloc a protectionist one. But if prices are higher inside the bloc because they are of a higher quality, and because they are safer and more reliable than those on sale outside, then it is much harder to argue that the EU is protectionist.

Related Links:
The Times - The force of gravity on Britain's trade

‘ECONOMISTS FOR BREXIT’: A critique

CEP Growth CEP Trade

Thomas Sampson webpage

Swati Dhingra webpage

Gianmarco Ottaviano webpage

John Van reenen webpage



News Posted: 18/01/2019      [Back to the Top]

The Times Higher Education Supplement

French university admissions: the crème de la crème?

One irony is that just as France has scrapped admissions lotteries, some in the UK and US are beginning to wonder whether they might be a good idea - albeit in a much more limited form than the pre- system. In a book published last year, Lee Elliot Major, chief executive of the UK social mobility thinktank the Sutton Trust, and Stephen Machin, professor of economics at the London School of Economics, argue that places at oversubscribed universities should be distributed randomly to students with grades above a certain threshold. The hyper-selectivity of "elite" universities favours the middle classes, who are better placed to help their offspring navigate the "baffling" selection processes, the book, Social Mobility and Its argues. A lottery could level the playing field.

Related Links:
CEP Labour Markets

Stephen Machin webpage



News Posted: 17/01/2019      [Back to the Top]

The Times

The force of gravity on Britain's trade

Claiming that manufacturing is protected in the EU is far more contentious. Mr Minford makes his case by taking an OECD databank of the prices of manufactured products around the world. He adjusts them for transport and distribution costs and concludes that the prices of manufactured products in the EU are 10 per cent above the world price.

But economists at the LSE argue that Mr Minford made no allowance for differences in quality among the manufactured goods being considered (Economists for Brexit: A Critique, by Thomas Sampson, Swati Dhingra, Gianmarco Ottaviano, and John Van Reenen).

Related Links:
‘ECONOMISTS FOR BREXIT’: A critique

CEP Trade CEP Growth

Swati Dhingra webpage

Gianmarco Ottaviano webpage

Thomas Sampson webpage

John Van reenen webpage



News Posted: 17/01/2019      [Back to the Top]

Irish Daily Mail

Studies show range of detrimental effects

Snippet: ... A new ESRI study shows smartphone ownership among children has a detrimental impact on their education. And a 2015 study by the Centre of Economic Performance at the London School of Economics found that after sch...

Related Links:
In brief... Phone home: should mobiles be banned in schools?

Ill Communication: Technology, Distraction & Student Performance

CEP Education and Skills

Richard Murphy webpage



News Posted: 17/01/2019      [Back to the Top]

Bloomberg

Plenty of Uber drivers are loving their jobs too

A survey by Stephen Machin and Giulia Giupponi, two researchers at the London School of Economics, involved more than 20,000 self-employed, gig economy and zero-hours respondents. On average, workers on zero-hour contracts worked about 19 hours per week. Very few did more than 40 hours. Again, there was a near-equal split between those who'd like more hours (44 percent) and those satisfied (40 percent). Gig economy workers were similar.

Related Links:
Bloomberg - Plenty of Uber drivers are loving their jobs too

CEP Labour Markets

Giulia Giupponi webpage

Stephen Machin webpage



News Posted: 15/01/2019      [Back to the Top]

Le Monde

Paul Seabright : « La politique industrielle a la capacité de soutenir l’emploi et l’investissement » / Paul Seabright: "Industrial policy has the capacity to support jobs and investment"

A British study estimated the impact of public subsidies in regions in difficulty. If a gain for the job was found but the big companies, first beneficiaries, do not change their behavior, notes the professor of economy in his column.

Fortunately, a study published a few days ago in the prestigious American Economic Review allows us to estimate the impact of a British program of support for businesses in regions in difficulty ("Some Causal Effects of an Industrial Policy", Chiara Criscuolo, Ralf Martin, Henry G. Overman and John Van Reenen, American Economic Review No. 109/1, January 2019).

Related Links:
Le Monde - Paul Seabright : « La politique industrielle a la capacité de soutenir l’emploi et l’investissement » / Paul Seabright: "Industrial policy has the capacity to support jobs and investment"

Some Causal Effects of an Industrial Policy

CEP Growth CEP Trade CEP Urban and Spatial Programme

Chiara Criscuolo webpage

Ralf Martin webpage

Henry Overman webpage

John Van reenen webpage



News Posted: 14/01/2019      [Back to the Top]

The Conversation

Brexit, xenophobia and international students: how to combat 'public paranoia' over immigration

Research by London School of Economics professor Stephen Machin and Richard Murphy at The University of Texas at Austin revealed that by paying higher fees, international students in effect subsidise certain domestic students.

Related Links:
The Conversation - Brexit, xenophobia and international students: how to combat 'public paranoia' over immigration

Paying Out and Crowding Out? The Globalisation of Higher Education

CEP Education and Skills CEP Labour Markets

Stephen Machin webpage

Richard Murphy webpage



News Posted: 09/01/2019      [Back to the Top]

Financial Times

Should the world care about Brexit?

Thomas Sampson, a London School of Economics scholar, detects a wider global meaning in Brexit. "The period since world war II has been marked by growing economic and cultural globalisation and, in Europe, increasing political integration under the auspices of the European Union. Brexit marks a departure from this trend... More broadly, Brexit raises questions about the future stability of the EU and the extent to which further globalisation is inevitable."

Brexit papers and Analyses from the CEP.

Related Links:
Financial Times - Should the world care about Brexit?

The Economic Consequences of the Brexit Deal

CEP Trade

Thomas Sampson webpage



News Posted: 08/01/2019      [Back to the Top]

Beneath the Surface (blog)

Effects of New Technologies on Labour

Autor and Salomons acknowledge that because they used such a general measure of technological change, they couldn't assess the impact of robotics specifically. They do cite work by Georg Graetz and Guy Michaels that did not find general negative effects of robots on employment or labor share in countries of the European Union. That's important, since many European countries have gone farther than we have in adopting robots.

Related Links:
Beneath the Surface (blog) - Effects of New Technologies on Labour

Robots at work: the impact on productivity and jobs

Robots at Work

CEP Labour Markets

Georg Graetz webpage

Guy Michaels webpage



News Posted: 04/01/2019      [Back to the Top]

ActuAI (video)

Conférence « Intelligence artificielle et croissance » par Philippe Aghion/ Conference "Artificial Intelligence and Growth" by Philippe Aghion


Related Links:
ActuAI (video) - Conférence « Intelligence artificielle et croissance » par Philippe Aghion/ Conference "Artificial Intelligence and Growth" by Philippe Aghion

CEP Growth

Philippe Aghion webpage



News Posted: 04/01/2019      [Back to the Top]

LSE British Politics and Policy Blog

David Cameron, David Beckham, and the UK’s social mobility problem

Lee Elliot Major and Stephen Machin explain how Britain has become less mobile, particularly at the top and bottom of society.

Social Mobility And Its Enemies, Lee Elliot Major & Stephen Machin, Pelican, October 2018.

Related Links:
LSE British Politics and Policy Blog - David Cameron, David Beckham, and the UK’s social mobility problem

CEP Labour Markets

Stephen Machin webpage



News Posted: 04/01/2019      [Back to the Top]

Financial Times

The FT polled 81 economists about prospects for 2019

Swati Dhingra, associate professor, LSE
Slowdown like earlier, low GDP growth relative to other OECD countries. Dampening of investments. Hard to predict numbers here because short-term forecasts are not the most reliable but direction likely to be negative.

Stephen Machin, professor, LSE
Much of the uncertainty has already been factored in, but more recent events and extra uncertainty associated with that may magnify the effects we have already seen: upward pressure on price inflation, firms cutting back on intangibles like worker training and overtime, and associated negative effects on firm productivity.

John Van Reenen, professor, MIT Economics Department and Sloan Management School
It will affect it negatively, especially over investment and hiring (as it is currently doing).

Related Links:
Financial Times - The FT polled 81 economists about prospects for 2019

CEP Growth CEP Labour Markets

Swati Dhingra webpage

John Van reenen webpage

Stephen Machin webpage



News Posted: 02/01/2019      [Back to the Top]

Süddeutsche Zeitung

Auf der Suche nach dem Glück / In search of happiness

The Briton Richard Layard is a well-known economist. Now he sits in the upper house and is dedicated to the question of what really makes people happy. It is not money, that much is clear.

"The price of happiness: lessons from a new science", by Richard Layard (Ed. Armand Colin, 2007)

Happiness: Lessons from a new science, Richard Layard, Penguin 2011 ISBN: 9780241952795

Related Links:
Süddeutsche Zeitung - Auf der Suche nach dem Glück / In search of happiness

CEP Wellbeing

Richard Layard webpage



News Posted: 01/01/2019      [Back to the Top]