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News and Press

News Archive 2013

The Daily Telegraph

To revive annual pay rises, the Coalition needs a supply-side revolution

This is extremely important data, first revealed in a groundbreaking paper by Joao Paulo Pessoa and John Van Reenen of the London School of Economics. But whereas labour's share of GDP has remained constant, pension costs and employers' national insurance (inevitably borne by workers, not businesses) have gobbled up a much greater share of total compensation, increasing from 13pc to 17pc since 2002, and leaving much less for actual wages and salaries.

This article was published in The Daily Telegraph on December 11, 2013
Link to article here

Related publications
Wage growth and productivity growth: the myth and reality of 'decoupling', Joao Paulo Pessoa and John Van Reenen. Article in CentrePiece Volume 18, Issue 2, Autumn 2013
'Decoupling of Wage Growth and Productivity Growth? Myth and Reality', Joao Paulo Pessoa and John Van Reenen, Centre for Economic Performance Discussion Paper No.1246, October 2013

Related links
Joao Paulo Pessoa webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 11/12/2013      [Back to the Top]

Yahoo! UK and Ireland

Pay rises are making a comeback - here's how we make sure they stay

Greedy capitalists are sometimes also blamed for falling wages. That is nonsense. In many other countries capital has grabbed a greater share of the economic pie in recent years. However, this has not happened in the UK, a vitally important but almost entirely overlooked fact. Over the past quarter of a century, the share of GDP going to employees in wages, salaries, pension contributions, benefits and social costs has remained roughly the same. It has averaged 54pc of GDP and varied from 51pc in 1996 to 56pc in 1991. When including the self-employed, the share has also remained constant, averaging 59pc (in a 57pc to 61pc range). This is extremely important data, first revealed in a ground-breaking paper by Joao Paulo Pessoa and John Van Reenen of the London School of Economics.

This article was published online by Yahoo! UK and Ireland on December 10, 2013
Link to article here

Related publications
Wage growth and productivity growth: the myth and reality of 'decoupling', Joao Paulo Pessoa and John Van Reenen. Article in CentrePiece Volume 18, Issue 2, Autumn 2013
'Decoupling of Wage Growth and Productivity Growth? Myth and Reality', Joao Paulo Pessoa and John Van Reenen, Centre for Economic Performance Discussion Paper No.1246, October 2013

Related links
Joao Paulo Pessoa webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 10/12/2013      [Back to the Top]

BBC (web)

Ego-boosts 'drive up boys' results'

Boys are much more likely than girls to be influenced by where they stand in ability in school, research suggests. A study from the London School of Economics indicates being seen as a high flyer in primary school, regardless of actual ability, can be a strong motivator for boys' performance in secondary school. ''Boys were four times more affected by being top of the class than girls.'' The study was based on results of more than two million pupils in England. The research, from Richard Murphy and Felix Weinhardt, examined how much pupils might be affected by comparisons with others in primary school and how these perceptions might become a factor in raising or lowering confidence.

This article was published online by BBC News on December 10, 2013
Link to article here

See also
UK Wired News
Boys 'improve in school from feeling top of class'

Related publications
In brief...Top of the class, Richard Murphy and Felix Weinhardt. Article in CentrePiece Volume 18, Issue 2, Autumn 2013
'The Importance of Rank Position', Richard Murphy and Felix Weinhardt, Centre for Economic Performance Discussion Paper No. 1241, September 2013

Related links
Richard Murphy webpage
Felix Weinhardt webpage
Education and Skills Programme webpage



News Posted: 10/12/2013      [Back to the Top]

Times Higher Education

Education policy and research are linked in online

An online network aims to bring policymakers together with academics studying higher education, potentially stimulating new research on neglected areas such as the effectiveness of access spending. The ''Economics of Higher Education'' network, which officially launched on 20 November, is being led by two London School of Economics academics, with sponsorship from Universities UK and the Economic and Social Research Council. One of the academics behind the project, Gill Wyness, research officer at the LSE's Centre for Economic Performance, said it was ''not always easy'' for researchers and policymakers to connect, and that better links could ''spark off ideas for research''. She argued that there was a lack of research on important areas such as the ''impact of tuition fees on participation''. Another area of weakness was research on the effectiveness of the widening access measures chosen by universities in their agreements with the Office for Fair Access, added Dr Wyness, who will work on the network with her LSE colleague Richard Murphy, a research economist at the Centre for Economic Performance.

This article was published in The Times Higher Education on November 21, 2013
Link to article here

Related links
Richard Murphy webpage
Gill Wyness webpage
Education and Skills Programme webpage
The Economics of Higher Education network webpage

News Posted: 21/11/2013      [Back to the Top]

Financial Times

Fall in jobless rate underscores pace of revival

Low- and high-skilled jobs have expanded while middle-skilled jobs have fallen as a share of employment, according to a report by the Resolution Foundation thinktank and London School of Economics. This phenomenon, sometimes called the ''hourglass effect'', is causing concern because a decline in mid-range jobs such as administration and semi-skilled manufacturing may be forcing more people into low-paid work.

This article was published in the Financial Times on November 14, 2013
Link to article here

Related publications
A Polarising Crisis? The changing shape of the UK and US labour markets from 2008 to 2012, James Plunkett and Joao Paulo Pessoa, Resolution Foundation, November 2013
'Decoupling of Wage Growth and Productivity Growth? Myth and Reality', Joao Paulo Pessoa and John Van Reenen, Centre for Economic Performance Discussion Paper No.1246, October 2013

Related links
Joao Paulo Pessoa webpage
Productivity and Innovation Programme webpage

News Posted: 14/11/2013      [Back to the Top]

BBC Radio 2 - Today Programme

Lord Heseltine: HS2 can 'regenerate' areas

Lord Heseltine has come out fighting in favour of the HS2 high speed rail project. In a speech on Tuesday, the former Conservative Cabinet minister said supporting HS2 is as much an act of faith as a reliance on figures, and the UK ''must consider carefully the cost of not acting'' over HS2. Professor Henry Overman, a former member of the HS2 analytical challenge panel, believes ''on the balance of the evidence we've got available to us, HS2 remains not particularly good value for money compared to other transport projects.''

The interview was broadcast on BBC Radio 2's Today Programme on November 12, 2013
Link to piece here

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website


News Posted: 12/11/2013      [Back to the Top]

City AM

The Greenbelt sacred cow: It pens in the poor for no environmental gain

Article by Paul Cheshire
While research I did in the 1980s showed that there was a small but measurable value of Greenbelts for people who lived near them, recent research by colleagues at the London School of Economics, using data on more than 1m house transactions, showed this had gone.

Thsi article was published in City AM on November 11, 2013
Link to article here

Related publications
SERC blog - Should we build on the Green Belt?, Henry Overman, 29 June 2013

Related links
Paul Cheshire webpage
SERC website

News Posted: 11/11/2013      [Back to the Top]

Guardian

Come on people, play the game!

The last government's happiness tsar, LSE economist Richard Layard, recommended cognitive behavioural therapy to reduce the cost to the NHS of depression. Where do you stand on happiness-enhancing CBT? ''Playing games can contribute to making you happy, perhaps even without therapy.''

This article was published in the Guardian on November 9, 2013
Link to article here

Related publications
How Mental Illness Loses out in the NHSA, Mental Health Policy Group, June 2012
The Depression Report. A New Deal for Depression and Anxiety Disorders, The Centre for Economic Performance's Mental Health Policy Group, June 2006

Related links
Richard Layard webpage
Wellbeing Programme webpage
Mental Health research webpage

News Posted: 09/11/2013      [Back to the Top]

Financial Times

Labour asked for detail on 'living standards' talk

These trends worry economists and a broad consensus is supportive of a focus on living standards rather than GDP. The London School of Economics growth commission this year, for example, stated that ''prosperity is strengthened when everyone has the capacity to participate effectively in the economy and the benefits of growth are widely shared''.

This article was published in the Financial Times on November 9, 2013
Link to article here

Related publications
Investing for Prosperity. A Manifesto for Growth (2013) T. Besley and J. Van Reenen (eds), LSE Academic Publishing in partnership with London Publishing Partnership.
Details
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 09/11/2013      [Back to the Top]

Centre for Policy Studies blog

Down with the 'living wage'

Even if the employer decided not to cut back on jobs or hours in the event of a living wage imposition, would this be such a benevolent economic outcome? The other alternatives in the event of unchanged productivity are to pass on the costs in the form of higher prices to customers, or to eat into the profit margin of the company. In fact, evidence from Jonathan Wadsworth for the LSE's Centre for Economic Performance suggests that the minimum wage has led to faster than average price rises in sectors where minimum wage workers operated (like fast food, domestic and hotel services). Likewise, if profit margins being squeezed contributes to a cut in investment, then this itself has consequences for economic growth.

The article was published online on the Centre for Policy Studies blog site on November 8, 2013
Link to article here

Related publications
Should we abolish the minimum wage?, Jonathan Wadsworth, LSE Research and Expertise, March 2012
Employment, Inequality and the UK National Minimum Wage over the Medium-Term, Peter Dolton, Chiara Rosazza-Bondibene and Jonathan Wadsworth, Centre for Economic Performance Discussion Paper No.1007, October 2010
'Did the National Minimum Wage Affect UK Prices?', Jonathan Wadsworth, Centre for Economic Performance Discussion Paper No.947, August 2009

Related Links
Jonathan Wadsworth webpage
Labour Markets Programme webpage

News Posted: 08/11/2013      [Back to the Top]

Financial Times

KPMG defends key HS2 report

However, concerns about the KPMG report, surfaced when the FT revealed misgivings about it among some of the government's own advisers. Dan Graham, a professor of statistical modelling at Imperial College London, told the committee of MPs on Tuesday ''I don't think the statistical work is reliable''. Henry Overman, professor of economic geography at the London School of Economics and a former adviser on HS2, went further. ''They [KPMG] apply this procedure which is essentially made up, which provides them with an estimate. It is something that really shouldn't be done in a situation where we are trying to inform public debate using statistical analysis.'' Prof Overman said he thought the £15bn estimate could be overstated by a factor of six to eight.

This article was published by the Financial Times online on November 6, 2013
Link to article here

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website

News Posted: 06/11/2013      [Back to the Top]

Mail online UK (web)

15bn boost from HS2 is a sham, MPs are told

Calculations used by ministers to justify the controversial £50billion high-speed rail scheme were 'essentially made up', a former Government adviser told Treasury watchdogs yesterday. Professor Henry Overman was one of a number of academics giving testimony to MPs which undermined the ministerial case for the 351-mile HS2 line from London to Birmingham and the North. Government-commissioned accountants denied 'cherrypicking' figures to over-egg the benefits of the scheme. But Professor Overman, who specialises in economic geography at the London School of Economics, said he had resigned from the Government's high-speed rail advisory panel after believing its role had changed from giving independent advice to actively promoting the controversial project.

This article was published online by mail online UK on November 6, 2013
Link to article here

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website

News Posted: 06/11/2013      [Back to the Top]

i (the paper for today)

GBP15bn HS2 benefit has no 'statistical basis', MPs told

''I don't think the statistical work [in the KPMG report] is reliable. There are problems with the numbers they have generated.'' Henry Overman, professor of economic geography at the London School of Economics, said that there was ''no statistical basis'' for the KPMG £15bn annual benefit figure.

The article was published in i (the paper for today) on November 6, 2013
[No link available]

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website

News Posted: 06/11/2013      [Back to the Top]

City AM

Experts pour cold water on HS2 benefits

£15bn a year for the British economy, and Treasury select committee chair Andrew Tyrie said afterwards that the claim ''has no firm statistical foundation''. Henry Overman, a professor at the London School of Economics who formerly advised the government on HS2, said KPMG, which provided the forecast, ''applied this procedure which is essentially made up''.

This article was published in City AM on November 6, 2013
Link to article here

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website

News Posted: 06/11/2013      [Back to the Top]

The Daily Telegraph

HS2 benefits are made up, MPs told

The £50billion HS2 scheme were ''essentially made up'' a former member of Whitehall's high speed rail advisory panel has told MPs. Henry Overman, professor of economic geography at the London School of Economics said he had quit the panel after he felt its role changed from providing independent advice to promoting the project.

This article was published in The Daily Telegraph on November 6, 2013
Link to article here

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website

News Posted: 06/11/2013      [Back to the Top]

Les Echos

Déflation, saison 2

Ensuite, meme s'ils pouvaient preter au tout-venant, il est loin d'etre sur que le tout-venant veuille emprunter. On ne fait pas boire un ane qui n'a pas soif. Deux economistes de la London School of Economics, qui ont publie recemment une etude (1) sur l'efficacite comparee de la politique monetaire en temps d'expansion et de recession aux Etats-Unis, le montrent clairement: si des taux d'interet en augmentation freinent l'activite, des taux diminues ne la relancent pas. Il faut alors agir par d'autres instruments que la politique monetaire classique.
Deflation, season 2 [Translation]
Then, even if they could lend to the run, it is far from sure that the ungraded wants to borrow. We do not drink a donkey who is not thirsty. Two economists at the London School of Economics, who published recently a study (1) on the effectiveness of monetary policy in times of expansion and recession in the United States, compared clearly demonstrate: If rising interest rates slow activity, reduced rates will not revive. We must then act by other instruments than policy monetary classic.

This article was published in Les Echos on November 5, 2013
Link to article here

Related publications
Pushing On a String: US Monetary Policy is Less Powerful in Recessions, Silvana Tenreyro and Gregory Thwaites, Centre for Economic Performance Discussion Paper No.1218, May 2013

Related links
Silvana Tenreyro webpage
Macro Programme webpage

News Posted: 05/11/2013      [Back to the Top]

LSE Politics and Policy blog

Social mobility matters, and government can affect the mechanisms which promote it

In response to arguments that the 'social mobility problem' has been overstated and that social mobility as a policy aim is futile, Jo Blanden reviews research that her and colleagues have conducted into intergenerational mobility in the UK. She argues that there is good evidence that relative intergenerational income mobility declined over time in the UK and that governments can indeed affect the mechanisms which can promote social mobility. To do so they must take a close look at the overall shape of society.

The piece was published by LSE politics and policy blog on November 4, 2013
Link to blog here

Related publications
Blanden, J., A. Goodman, P.Gregg and S.Machin (2004) ''Changes in Intergenerational Mobility in Britain'' in Corak, M. (ed.) Generational Income Inequality in North American and Europe, Cambridge University Press. Details.
Social Mobility in Britain: Low and Falling, Jo Blanden, Paul Gregg and Stephen Machin. Article in CentrePiece Volume 10, Issue 1, Spring 2005
Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin - a report supported by the Sutton Trust, April 2005
This paper has been published as: Jo Blanden, Paul Gregg and Stephen Machin, 'Educational Inequality and Intergenerational Mobility' in Stephen Machin and Anna Vignoles (eds.) What's the Good of Education? The Economics of Education in the UK, Princeton University Press, 2005. Details.

Related links
Jo Blanden webpage
Stephen Machin webpage
Education and Skills Programme webpage

News Posted: 04/11/2013      [Back to the Top]

The Sunday Business Post (Ireland)

Siptu proposes apprenticeship system for young people

The Department of Education is understood to have established the review group because it was concerned about a significant collapse in employer demand for apprentices, particularly in construction-related trades. Statistics reported by this newspaper in May showed a massive fall-off in the number of new apprentice registrations supplied by troubled state training agency F ¡s, which was replaced last week by Solas, a new further education and training authority. The review group, headed by Labour Court chairman Kevin Duffy, is consulting widely with training providers, trade unions and employer representatives. It is focusing on work-based learning and establishing a closer alignment of the apprenticeship system with the current needs of the labour market. The review group also includes Dr Hilary Steedman, a senior research fellow from the Centre for Economic Performance at the London School of Economics, and Dr Tony Dundon, head of management discipline at the School of Business and Economics in NUI Galway. The group also contains representatives from industry, Ibec and Ictu.

The article was published in The Sunday Business Post on November 3, 2013
[Subscription needed to view the article]

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

News Posted: 03/11/2013      [Back to the Top]

Los Angeles Times

How much are we willing to pay for the pursuit of happiness?

As Radcliff put it in a CNN op-ed: ''The 'nanny state' works.'' Statistics bear him out. In the 2013 World Happiness Report, published by the UN and compiled by Jeffrey D. Sachs of Columbia University and colleagues from the London School of Economics and the University of British Columbia, four of the top five rankings are occupied by Denmark, Norway, Switzerland, the Netherlands and Sweden, all countries with strong social programs. The U.S. ranks 17th, suggesting that Americans are happy, just not as happy as they could be. Where the U.S. tends to fall short of the leaders is in measurements of social support, ''freedom to make life choices'', healthy life expectancy and perceptions of corruption.

This article was published in the LA Times on November 3, 2013
Link to article here

Also in
6 November 2013
Denver Post
Hiltzik: How much are we willing to pay for the pursuit of happiness?

Related publications
World Happiness Report 2013, John F. Helliwell, Richard Layard and Jeffrey D. Sachs (Eds), 2nd Report from the Earth Institute, Columbia University, September 2013
Details

Related links
Richard Layard webpage
Wellbeing Programme webpage

News Posted: 03/11/2013      [Back to the Top]

Times Higher Education

Rich-poor higher education gap 'wider than in 1963'

Increasing the number of poorer students in higher education has not proved to be the ''great social leveller'' that it was expected to be in the Robbins era. That was the argument set out by Anna Vignoles, professor of education at the University of Cambridge, at a conference to mark the 50th anniversary of the Robbins report held at the London School of Economics on 22 October. Lord Robbins was head of the economics department at the LSE at the time his report was published.

The article was published in The Times Higher Education on October 31, 2013
Link to article here

Related links
Anna Vignoles webpage
Education and Skills Programme webpage
Centre for the Economics of Education website
Anna Vignoles CEP publications webpage

News Posted: 31/10/2013      [Back to the Top]

Lancashire Telegraph

Warning of mixed ability classes

TEACHING mixed ability groups could damage the confidence of pupils who believe they are in the bottom half of their class, a study suggests. Researchers from the London School of Economics claim that children who achieved high grades in primary school, then perform better in secondary school not simply because they are smart but because their previous success in class had boosted their confidence. Richard Murphy and Felix Weinhardt analysed test data of more than two million pupils in England and carried out a survey on the confidence of 15,000 young people.

This article was published by the Lancashire Telegraph on October 29, 2013
Link to article here

Related publications
'The Importance of Rank Position', Richard Murphy and Felix Weinhardt, Centre for Economic Performance Discussion Paper No.1241, September 2013

Related links
Richard Murphy webpage
Felix Weinhardt webpage
Education and Skills Programme webpage

News Posted: 29/10/2013      [Back to the Top]

People Management online

The £7.45 question: Should you pay the living wage?

''Investment banks [key early adopters of the wage] don't have that many minimum wage employee''s, says Alan Manning, professor of economics at the London School of Economics. ''The cost of complying is just a rather good lunch to them.''

This article was published online by cipd.co.uk on October 25, 2013
Link to article here

Related links
Alan Manning webpage
Labour Markets Programme webpage
Community Programme webpage

News Posted: 25/10/2013      [Back to the Top]

ILOTV

Hilary Steedman: Apprenticeships and productivity of small and medium-sized enterprises

Hilary Steedman, a Research Associate at the Centre for Economic Performance at the London School of Economics talks about how apprenticeships can help small and medium-sized enterprises (SME) improve their productivity, and their importance for young employees, both women and men.

The item was first broadcast on ILOTV on October 24, 2013
Link to item here

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

News Posted: 24/10/2013      [Back to the Top]

LSE Politics and Policy blog

Long-term unemployment: there is no easy fix

The Great Recession has brought with it a significant increase in the long-term unemployed. This is especially concerning as long-term unemployment has detrimental effects on the individuals involved, affecting mental and physical well-being. Concerns about the consequences of long-term unemployment and existing policy evaluations provide a useful framework to evaluate the strategy proposed by George Osborne to tackle long-term unemployment in the UK, writes Barbara Petrongolo.

The article was published online on the LSE Politics and Policy blog on October 22, 2013
Link to article here

Related links
Barbara Petrongolo webpage
Labour Markets Programme webpage
Barbara Petrongolo CEP publications webpage

News Posted: 22/10/2013      [Back to the Top]

BBC web

High-speed rail 'losers' revealed

...to Birmingham and to Manchester and Leeds. The Department for Transport say ultimately the line would reduce journey times to Edinburgh and Glasgow by an hour. Professor Henry Overman from the London School of Economics - formerly an expert adviser to HS2 Ltd - told the BBC it was obvious that, as some cities, towns and regions reap the benefits of being better connected, other places away from the line will pay a price.

This news article appeared on the BBC news website on October 19, 2013
Link to article here

Related publications
HS2: assessing the costs and benefits, Henry Overman. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Henry Overman webpage
Globalisation Programme webpage
SERC website

News Posted: 19/10/2013      [Back to the Top]

Livemint

The right ingredients for entrepreneurship

Academics at Haas School of Business, University of California at Berkeley, and the London School of Economics' Department of Management, have been studying the traits that are common to successful entrepreneurs. Their research finding for the right ingredients: ''illicit tendencies'', coupled with intelligence and a few other factors (helps if mum went to college).

This article was published online on Livemint on October 2, 2013
Link to article here

Related publications
'Smart and Illicit: Who becomes an entrepreneur and does it pay?', Ross Levine and Yona Rubinstein, Centre for Economic Performance Discussion Paper No.1237, August 2013.

Related links
Yona Rubinstein webpage
Labour Markets programme webpage
Community Programme webpage

News Posted: 02/10/2013      [Back to the Top]

The Conversation

Over here and over productive: let's welcome foreign owners

Article by John Van Reenen
The proportion of UK-quoted shares owned by overseas investors passed the 50% mark for the first time last week. Predictably there was much wringing of hands about the decline of British business and short-termism of UK investors. But the fact is that the growth in foreign ownership is something to be welcomed, not feared. First and foremost, it is a sign of confidence in the long-run prospects of the economy. Despite the policy mistakes over premature austerity in the last few years, the underlying fundamentals of the UK economy are strong. As pointed out by the LSE Growth Commission the stable rule of law, flexible labour markets and good competitive conditions are attractive to international investors.

This article was published online by The Conversation on September 30, 2013
Link to article here

Related publications
The Impact of Alternative Paths of Fiscal Consolidation on Output and Employment in the UK, Nitika Bagaria, Dawn Holland, Jonathan Portes and John Van Reenen. Article in VOX, 14 August 2012.
Executive Summary, LSE Growth Commission Report, January 2013
Investing for Prosperity: Skills, Infrastructure and Innovation, Report of the LSE Growth Commission, January 2013
LSE Growth Commission book – Investing for Prosperity – A manifesto for growth, Tim Besley and John Van Reenen (Eds), LSE publication, September 2013
Details
Purchase details here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission webpage

News Posted: 30/09/2013      [Back to the Top]

The Times

Minimum wage to be tested against new challenges

Professor Sir George Bain, who was the first chair of the Low Pay Commission, will oversee a wide-reaching analysis of the wage, sponsored by the Resolution Foundation, the think-tank set up by Clive Cowdery, the insurance entrepreneur. He will be joined in his work, which is set to complete by the beginning of next year, by James Plunkett, the foundation's director of policy and development, Alan Manning, Professor of Economics at the London School of Economics, and Nicola Smith, the head of economic and social affairs for the TUC.

This article was published in The Times on June 21, 2013
Subscription necessary to download.

Related publications
Big ideas: The UK's National Minimum Wage, Alan Manning. Article in CentrePiece Volume 14, Issue 2 Autumn 2009
The Contribution of the Minimum Wage to U.S. Wage Inequality over Three Decades: A Reassessment, David H. Autor, Alan Manning and Christopher L. Smith, Centre for Economic Performance Discussion Paper No.1025 November 2010

Related links
Alan Manning webpage
Labour Markets Programme webpage

News Posted: 21/06/2013      [Back to the Top]

The Australian - Business with the Wall Street Journal

forget what gurus say: money does buy happiness

Despite economic growth, happiness in the West has not grown in the last 50 years, British happiness guru Richard Layard said a decade ago. This argument is useful for proponents of highly progressive income tax: a flat rate of income tax, while simple and likely to promote more rapid economic growth, is not fair because high earners don't "need" their incomes as much as others.

This article was printed in The Australian on May 16, 2013
Link to article here

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness and Public Policy Research webpage

News Posted: 16/05/2013      [Back to the Top]

OUP blog (Oxford University Press's Academic Insights for the Thinking World)

The classification of mental illness

According to the UK Centre for Economic Performance, mental illness accounts for nearly half of all ill health in the under 65s. But this begs the question: what is mental illness? How can we judge whether our thoughts and feelings are healthy or harmful? What criteria should we use?

This article was published on the OUP blog (Oxford University Press) on May 15, 2013
Link to article here

Related publications
How Mental Health Loses Out in the NHS: A report by the Centre for Economic Performance's Mental Health Policy Group, June 2012

Related links
Richard Layard webpage
Wellbeing Programme webpage
Mental Health Policy Group webpage

News Posted: 15/05/2013      [Back to the Top]

Wired.com

What Marissa Mayer doesn't (and does) get about white-collar work

Stanford economist Nicholas Bloom took employees at a huge Chinese travel agency and randomly assigned some to work from home while others worked in the office. Sure enough, in terms of sheer amount of work, the stay-at-homes did 13 percent more overall. Bloom's previous studies found that firms with policies that allowed remote work were more productive in general than the companies that didn't have such policies in place.

This article was published by Wired.com on May 15, 2013
Link to article here

Related publications
'Does Working from Home Work? Evidence from a Chinese Experiment', Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying, Centre for Economic Performance Discussion Paper No.1194, March 2013

Related links
Nicholas Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 15/05/2013      [Back to the Top]

Huffington Post

Richard Layard: Why we should put mental health first

This post by Richard Layard is part of a series produced by The Huffington Post, the University of Wisconsin-Madison's Center for Investigating Healthy Minds and the Global Health Institute in conjunction with the Change your Mind, Change the World 2013 conference. This series of dialogues on global health, sustainable well-being and science & happiness will feature his Holiness, the Dalai Lama, and other thought leaders.
"If you had a billion dollars to make the world a better place, how would you spend it?" My answer is always the same. I would spend it on modern evidence-based psychological therapy for people with depression and crippling anxiety, and for children with disordered conduct. Why? First, this is a truly massive problem which wrecks the lives of over one in 10 people worldwide. In rich countries, it is the biggest single cause of misery, accounting for more misery than physical illness does - and much more than is caused by poverty or unemployment.

This article was published by the Huffington Post on May 13, 2013
Link to article here

Related publications
'How Mental Illness Loses Out in the NHS'. A report by the Centre for Economic Performance's Mental Health Policy Group. Published June 18, 2012.
Details
Download the report here
'The Depression Report: A New Deal for Depression and Anxiety Disorders'. Report from the Centre for Economic Performance's Mental Health Policy Group, 2006
link to report here

Related links
Richard Layard webpage
Mental Health Policy Group webpage
Wellbeing Programme webpage

News Posted: 13/05/2013      [Back to the Top]

Forbes.com

Money does buy happiness, says new study

A number of scholars, including London School of Economics Professor Richard Layard, argued that once people had enough to meet their basic needs, somewhere between $8,000 and $25,000 or the equivalent of that in various spots around the world, happiness leveled out. Though Layard didn't dispute that within a country, billionaires tended to enjoy their riches and demonstrate more happiness than their less-fortunate counterparts who were, say, single mothers working as home health aides, he believed that if you averaged out income in a given country, there was a satiation point, beyond which the country could not achieve greater nationwide happiness.

This article was printed by Forbes.com on May 10, 2013
Link to article here

Related links
Richard Layard webpage
Wellbeing Programme webpage
Happiness and Public Policy Research webpage

See also
Saturday 11 May
South China News (translate)
The more money, the more you are happy
Richard Layard, professor at the London School of Economics follow-up study concluded that the per capita income is more than $15,000, higher average income and cannot guarantee more happiness.

News Posted: 10/05/2013      [Back to the Top]

Evening Standard

Time to unblock the growth path

It should not be as difficult as we seem to make it. A working group at the London School of Economics pointed out a few months ago that growth is neither about the size of the state or about deregulation. It is about whether the state is smart in the way it regulates and spends. We need well-designed policies to support growth and we need an institutional framework that delivers good policy.

This article appeared in the Evening Standard on May 9, 2013
Link to article here

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 09/05/2013      [Back to the Top]

Japan Times

Immigration shows no impact on UK violence

Crime in British neighborhoods that have experienced mass immigration from Eastern Europe over the last 10 years has fallen significantly, according to research that challenges a widely held view over the impact of foreigners in the United Kingdom. Brian Bell, a research fellow at the LSE, said: "The view that foreigners commit more crime is not true. The truth is that immigrants are just like natives, if they have a good job and a good income they don't commit crime".

This article was published in the Japan Times on May 4, 2013
Link to article here

Related publications
'Immigrant Enclaves and Crime', Brian Bell and Stephen Machin, Centre for Economic Performance Discussion Paper No. 1104, December 2011

Related links
Brian Bell webpage
Stephen Machin webpage
Labour Markets Programme webpage

News Posted: 04/05/2013      [Back to the Top]

Zoom News

La receta de Alemania contra el paro jevenil no sirve para España

...la relacion entre empresario y aprendiz", apunta Hilary Steedman, investigadora de la London School of Economics. En el mejor de los supuestos, la formacion dual es una experiencia adaptable a las realidades de otros países europeos. Pero incluso..
Dual training allows Germany to reduce youth unemployment crisis
Experts say it is a difficult scheme exportable to other countries... There is also a cultural and historical dimension dual training not to ignore. And is that "for more than a century, governments in which there is this learning, such as Austria, Germany and Switzerland have sought to balance the relationship between employer and apprentice", says Hilary Steedman, a researcher at the London School of Economics.

This article was published by Zoom News on May 1, 2013
Link to article here
Translate

Related publications
The State of Apprenticeship in 2010: International Comparisons - Australia, Austria, England, France, Germany, Ireland, Sweden, Switzerland. A Report for the Apprenticeship Ambassadors Network by Hilary Steedman, CEP Special Report No.22, September 2010

Related links
Hilary Steedman webpage
Education and Skills Programme webpage

News Posted: 01/05/2013      [Back to the Top]

BBC (web)

Getting used to a slower pace of growth in China

In addition, my research with John Van Reenen of the London School of Economics shows that JVs (joint ventures) are 23% more productive on average than other firms. Those which had a technology transfer agreement that directly transferred advanced know-how from the foreign partner to the Chinese firm were 73% more productive. Since 15% of all firms were JVs during the 2000s, economic growth would have been 0.43% slower each year if China didn't have those more productive joint ventures.

This article was published on the BBC website on May 1, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 01/05/2013      [Back to the Top]

Wall Street Pit

Did the Euro kill governance in the periphery?

Article by Jesus Fernandez-Villaverde, Luis Garicano and Tano Santos
By the end of the 1990s, under the incentive of Eurozone entry, most peripheral European countries were busy undertaking structural reforms and putting their fiscal houses in order. This column argues that the arrival of the euro, and the subsequent interest-rate convergence, loosened a tide of cheap money that reversed the incentives for further reforms. As a result, by the end of the euro's first decade, the institutions and governance in the Eurozone periphery were in worse shape than they were at the start of the decade.

The article was published in the Wall Street Pit online on April 30, 2013
Link to article here

Related links
Luis Garicano webpage
Claudia Steinwender webpage
Productivity and Innovation Programme webpage

News Posted: 30/04/2013      [Back to the Top]

Financial Times Video

No industrial policy, we're British

Two years ago George Osborne, chancellor, wished that a 'march of the makers' would help to lift the UK economy. But as the stagnation continues, there is little sign of an industrial revival. Professor John Van Reenen, director of the Centre for Economic Performance at the LSE, explains to Ferdinando Giugliano, FT leader writer, how industrial policy can help to get the economy going again.

This video was posted online on April 18, 2013
Link to the video here

Related links
John Van Reenen webpage
Growth Programme webpage



News Posted: 18/04/2013      [Back to the Top]

Financial Times

Britain should not go back to the future

Today's British economy is the legacy of Margaret Thatcher. The governments that succeeded her did not change the broad lines of her policies. John Major privatised the railways. Labour lightly regulated the City of London and made the Bank of England independent. When it did reverse direction - such as with the introduction of the minimum wage the measures - were carefully calibrated. So how should we judge Thatcher's legacy? The UK economy has registered at least four clear successes since 1979, notes Professor John Van Reenen of the London School of Economics.

This article was published in the Financial Times on April 11, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 11/04/2013      [Back to the Top]

VOX

Mrs Thatcher's economic legacy

Article by John Van Reenen
Margaret Thatcher's economic legacy lives on. This column provides a markedly balanced assessment of her mistakes and achievements. Most pressingly, Thatcherism left the UK failing to properly think about long-run investment, especially in infrastructure, in the skills of those at the lower end of the ability distribution and in innovation. The UK is addressing some of these problems, but this failure to invest in prosperity is the main challenge we face as a nation over the next 50 years.

The article was published online by VOX on April 11, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 11/04/2013      [Back to the Top]

LSE British Politics and Policy blog

The economic legacy of Mrs. Thatcher is a mixed bag

John Van Reenen analyses the economic legacy of Margaret Thatcher. In the late 1970s, when the UK was behind other developed nations in terms of material wellbeing, her supply side policies spurred economic revival. There is a substantial body of evidence suggesting that a range of important policy changes initiated by her underpinned these economic gains. Nevertheless, there are many important economic and social failures that are part of the Thatcher legacy.

This blog article was posted online on April 10, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 10/04/2013      [Back to the Top]

The Economist - Free Exchange blog

How Mrs Thatcher smashed the Keynesian consensus

The consensus in 2000 of a team of American, British and Canadian scholars working under the auspices of America’s National Bureau of Economic Research, and Britain’s Centre for Economic Performance and its Institute for Fiscal Studies was that British policies in the 1980s and 1990s arrested the relative decline in Britain’s economic standing, without pushing it notably higher in the ranks.

This article was published by The Economist - Free Exchange blog on April 9, 2013
Link to article here



News Posted: 09/04/2013      [Back to the Top]

Financial Times

Thatcher's quest left 'lasting scar' on economy

John Van Reenen, head of the Centre for Economic Performance at the London School of Economics, said: "The changes [under Thatcher] helped shift Britain from a century of relative decline to three decades where we caught up with the US, Germany and France."

This article was published in the Financial Times on April 8, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 08/04/2013      [Back to the Top]

The Times

Margaret Thatcher's legacy: We've kept our jobs, but earn less

Margaret Thatcher's demolition of the trade unions in the 1980s has helped to keep Britons in work through the latest financial crisis, leading economists suggested yesterday...Economists have been baffled by the conundrum that employment in Britain has remained high despite the fact that productivity has collapsed. Output in Britain is about 3 per cent lower today than it was before the downturn, yet more people are in work. In a session held by the Institute for Fiscal Studies and the Centre for Economic Performance at the Royal Economic Society yesterday, economists attempted to solve the puzzle. They said that a sharp fall in the real value of wages was the driving factor behind the contradiction. They also cautioned against any expectations of real-term wage rises in the near future. "The good UK jobs performance is the silver lining in the cloud of our low productivity numbers," said John Van Reenen, director of the Centre for Economic Performance.

This article was published in The Times on April 6, 2013
Link to article here
[Subscription necessary to read the complete article.]

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 06/04/2013      [Back to the Top]

LSE politics and policy blog

This was a 'small beer' budget with little fundamentally changed

Reflecting on yesterday's budget, John Van Reenen argues that an opportunity was missed. While there were good things in the budget, the 1p off a pint of beer was symbolic.
This was a budget in which little changed and the Chancellor yet again failed to offer a proper growth strategy to get the UK moving again.

This LSE politics and policy blog piece was posted on March 21, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation webpage

News Posted: 21/03/2013      [Back to the Top]

Financial Times

Squeezed middle battles financial pain

These phenomena have helped to change the pattern of inequality since the turn of the century, says Steve Machin, research director at the London School of Economics' Centre for Economic Performance. During the 1980s and 1990s, he says, both the top and the bottom of the earnings distribution "fell away from the middle".

This article was printed in the Financial Times on March 20, 2013
Link to article here

Related links
Stephen Machin webpage
Labour Markets Programme webpage
Education and Skills Programme webpage
Stephen Machin CEP publications webpage

News Posted: 20/03/2013      [Back to the Top]

Financial Times

Budget 2013: Economists Pass Judgement

Budget 2013: Economists pass judgment

CEP's Director of Research, Professor Stephen Machin, gives his views on the chancellor's 2013 budget...

"The chancellor pitched the Budget as one for hard-working people with a clear acknowledgment that recovery is taking "longer than anyone hoped". The picture remains gloomy as the economy is now expected to grow much less quickly this year than was thought last autumn and recovery seems even further away..."

Full article published by Financial Times on March 20, 2013
Link to article (subscription only)

Stephen Machin's homepage



News Posted: 20/03/2013      [Back to the Top]

BBC News

Budget 2013: The chancellor's challenges

Professor John Van Reenen interviewed by the BBC on the eve of the next Budget announcement by George Osborne.

The interview was broadcast by the BBC Business News site on March 19, 2013
Link to interview here

Related links
John Van Reenen webpage
Productivity and Innovation webpage

News Posted: 19/03/2013      [Back to the Top]

LSE Politics and Policy blog

The UK is in dire need of a meaningful plan for growth and the burden is on the Chancellor to provide it

In advance of Budget Day John Van Reenen highlights a range of chronic weaknesses which are holding back the UK economy, with infrastructure and associated policy uncertainty a particular problem. He calls for a new architecture for UK infrastructure, though cautions that any announcements must be carefully thought-out and avoid the political temptation attached to headline grabbing initiatives.

This article was posted on March 18, 2013
Link to blog here

Related links
John Van Reenen webpage
Productivity and Innovation webpage

News Posted: 18/03/2013      [Back to the Top]

BBC - Business News

Budget 2013: Should the government plough ahead with cuts?

"It's like one of those horror movies - you think the recession is dead, and then it pops up again."
John Van Reenen is feeling frustrated. The head of the LSE's Centre for Economic Performance believes his voice is just one of a growing chorus among economists calling on the government to slow down. "The speed of spending cuts is too fast, and it has contributed to the economy's pathetic rate of recovery", says the left-leaning economist.

The article was published by BBC News on March 18, 2013
Link to article here

Related links
John Van Reenen webpage
Productivity and Innovation webpage

News Posted: 18/03/2013      [Back to the Top]

Financial Times

Painful adjustments will prove worthwhile in the long term

The medium-term growth rate of the economy depends far more on leaving resources in the innovative and productive private sector economy than on boosting short-term demand. In the short term, some of this adjustment will be painful. But as the LSE Growth Commission showed about the legacy of the 1980 reforms, the long-term benefits make it more than worthwhile.

This article was published in the Financial Times on February 22, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 22/02/2013      [Back to the Top]

Financial Times

Financial crisis just a blip for bankers

The financial sector has proved remarkably resilient, with wages in the City rising while other workers saw pay fall between 2008 and 2011, according to research from the London School of Economics. Inequality before the crisis was driven by high pay in the financial sector and does not look set to stop, said Brian Bell of the Centre for Economic Performance, a co-author of the report.

This article was published in the Financial Times on February 22, 2013
Link to article here

Also in:
Public Service Europe
Bankers' bonuses post-crisis: all in it together?
Article by Brian Bell and John Van Reenen The share of the total UK income going to workers in the financial sector has not declined, and the average wage has risen faster for those working in the City of London than for everyone else.
Link to article here
FinFacts, Ireland
Financial crisis "little more than a blip for the pay of bankers"
The paper, 'Bankers and their Bonuses', by Dr Brian Bell and Prof John Van Reenen of the Centre for Economic Performance at the London School of Economics, says…..[that]the bankers in the top percentile saw their average wage rise from £325,100 to £353,100, a gain of 8.6%."
Link to article here

Related Publications
'Bankers and their bonuses', Brian Bell and John Van Reenen, Centre for Economic Performance Occasional Paper No.35, February 2013
'Extreme Wage Inequality: Pay at the Very Top', Brian Bell and John Van Reenen, Centre for Economic Performance Occasional Paper No.34, February 2013

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

News Posted: 22/02/2013      [Back to the Top]

Bloomberg

Why democracies aren't good at bridge-building

The London School of Economics Growth Commission, a panel of academics, former government officials and business leaders, has just published a report on how to improve Britain's economic performance. "Investing for Prosperity" is a notable piece of work that deserves to be widely read, and not just in Britain.

This article was published in Bloomberg news online on February 5, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 05/02/2013      [Back to the Top]

The Times

Scheme is no guarantee of reviving the economy

...Act received Royal Assent, we have agreed terms for the Northern Line Extension and announced £10 billion of projects that prequalify for a guarantee. A report last week from the London School of Economics Growth Commission called on the Government to create an independent infrastructure bank to mitigate the "political procrastination" that has deterred investors from making long-term commitments.

This article was published in The Times on February 4, 2013
Link to article here
(Note: subscription necessary to download complete article.)

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 04/02/2013      [Back to the Top]

BBC1 West Midlands

Sunday politics

Mention of the Growth Commission

Broadcast on BBC1 West Midlands on February 3, 2013

Also on
BBC Radio 4
Newspaper Review
Lord Stern joins the panel for the newspaper review and mentions the LSE Growth Commission.

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 03/02/2013      [Back to the Top]

The Daily Mail

Investment failure blighting Britain

The London Crossrail project has been around since the 1980s. A report by the London School of Economics Growth Commission this week tackles the infrastructure problem head on. The commission points out that the UK's adversarial political system, coupled with rampant nimby-ism, has hobbled long-term projects.

This article was published in The Daily Mail on February 2, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 02/02/2013      [Back to the Top]

Bloomberg

Jobs report suggests employers are ignoring Congress

One measure of economic policy uncertainty - an index created by economists Steven Davis of the Chicago Booth School of Business and Scott Ross Baker and Nick Bloom of Stanford University - stood in December at its highest point since the summer of 2011, when the debt-ceiling battle brought the government to the brink of default. Executives of big companies such as Caterpillar Inc. have warned that the uncertainty could affect their sales and profits.

This article was published by Bloomberg News on February 1, 2013

Link to article here

Related publications
Policy uncertainty: a new indicator, Scott R. Baker, Nicholas Bloom and Steven J. Davis. Article in CentrePiece Volume 16, Issue 3, Winter 2012

Related links
Nick Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 01/02/2013      [Back to the Top]

The New Statesman

Planning for long-term growth tells us what we should do in the short-term

Two things are striking about yesterday's report of the LSE Growth Commission. The first is the very strong implication of its conclusions that the path to future prosperity is decidedly one involving, indeed demanding, government involvement in the economy rather than the state stepping back. The second is what its prescription for long-term economic growth says about how we should get the UK out of its current economic malaise.

This article was published in The New Statesman on February 1, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 01/02/2013      [Back to the Top]

Press TV

UK economists demand urgent growth plan

Leading economists have stepped up their pressure on Chancellor George Osborne, slamming his austerity measures and calling for an urgent plan for growth. The London School of Economics Growth Commission also branded government investment in a long-term growth strategy as "inadequate", "unstable" and "failing".

The article appeared on Press TV online on February 1, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 01/02/2013      [Back to the Top]

The Financial

LSE Commission calls for a new focus on investment for future prosperity

Skills, infrastructure and innovation are the essential drivers of the productivity growth on which the UK's future prosperity depends. So while there are understandable concerns about the currently flat-lining economy, it is even more important to focus on vital long-term investments in these three areas. That requires stable and well-informed policy frameworks anchored in a broad political consensus on a new vision for growth. As the London School of Economics and Political Science said, these are among the conclusions of the London School of Economics (LSE) Growth Commission, which publishes its final report today. 'Investing in Prosperity: Skills, Infrastructure and Innovation' is based on evidence taken in a series of public sessions from leading researchers, business people, policy-makers and UK citizens.

This article was published by The Financial on February 1, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 01/02/2013      [Back to the Top]

The Economist

A growth manifesto

IT IS tempting to think Britain is well past its best. The first nation to industrialise, it once topped the tables of output per person. It is now a mid-table mediocrity on the edge of a triple-dip recession. But a proposal-packed new report compiled by a panel of academics, policymakers and business experts is more optimistic.

The article was published in The Economist on February 1, 2013
Link to article

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013 download here

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 01/02/2013      [Back to the Top]

The Economist

Northern Lights

The Nordics also have a strong record of drawing on the talents of their entire populations, with the possible exception of their immigrants. They have the world's highest rates of social mobility: in a comparison of social mobility in eight advanced countries by Jo Blanden, Paul Gregg and Stephen Machin, of the London School of Economics, they occupied the first four places. America and Britain came last.

The article was published in The Economist on February 1, 2013
Link to article

Related publications
Changes in Intergenerational Mobility in Britain, Jo Blanden, Alissa Goodman, Paul Gregg and Stephen Machin. In Corak, M. (ed), Generational Income Mobility in North America and Europe, Cambridge University Press, 2004.
Sutton Trust: Summary Report - Recent Changes in Intergenerational Mobility in the UK: A Summary of Findings
Main Report - Recent Changes in Intergenerational Mobility in Britain by Jo Blanden and Stephen Machin, December 2007
Report for the Sutton Trust: Intergenerational Mobility in Europe and North America by Jo Blanden, Paul Gregg and Stephen Machin
Social Mobility in Britain: Low and Falling by Jo Blanden, Paul Gregg and Stephen Machin. Article appeared in CentrePiece, Vol.10, Issue 1 Spring 2005

Related links
Jo Blanden webpage
Steve Machin webpage
Education and Skills Programme webpage

News Posted: 01/02/2013      [Back to the Top]

tutor2you

Unit 4 Macro: A Manifesto for Growth - the LSE Growth Commission Report

On Thursday 31st of January 2013, the long-awaited LSE Growth Commission Report was published and launched in London. The document itself is available for download from this link and I urge all teachers and students interested in growth, competitiveness and the fairness agenda to have a look at it. It is full of rewarding and important insights into the drivers of balanced growth in a modern advanced economy.

This blog was posted online on tutor2you on January 31, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

Morning Star

Top economists urge action for growth

Leading economists have condemned Britains flatlining economy and issued an urgent call for growth, dealing another blow to Chancellor George Osborne's credibility. The experts are behind a ''manifesto for growth'' which demands investment in transport, energy and house building schemes. This evening's launch is the conclusion of the London School of Economic's growth commission which sets out to end ''political procrastination''.

This article was published by The Morning Star on January 31, 2013
Link to article here

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission webpage

News Posted: 31/01/2013      [Back to the Top]

Mail Online

Failing schools 'hampering economy': Britain will not prosper unless education is overhauled, report warns

Britain's economy will not prosper unless its 'mediocre' education system is overhauled, a hard-hitting report says today. Written by a Nobel Prize-winning economist as well as former members of the Bank of England, the report from the London School of Economics calls for radical change to get the UK growing again.

The article was published by the Mail Online on January 31, 2013
Link to article here

See also
Schools Improvement Net
Report says failing schools are 'hampering economy' and Britain will not prosper unless education is overhauled
Independent Schools Council
Failing schools 'hampering economy': Britain will not prosper unless education is overhauled, report warns
Israel Herald
iNooz

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission webpage

News Posted: 31/01/2013      [Back to the Top]

Vox

Investing in UK prosperity: skills, infrastructure and innovation

Article by Tim Besley and John Van Reenen
The latest GDP figures confirm that the UK economy has been more or less flat-lining since the financial crisis began. This column presents the LSE Growth Commission's integrated recommendations for reigniting UK growth, arguing that an inability to achieve sustainable growth is rooted in longer-term problems arising from a failure to invest, notably in skills, infrastructure and innovation. The UK must engage evidence-based policy, in both word and deed, if it is to overcome international competition and myriad global changes.

This article was published online by Vox on January 31, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

Sky News

EU referendum debate 'damaging economic growth'

The Government just talking about an EU referendum is damaging investment and productivity, influential economists warn.

This article was published online by Sky News on January 31, 2013
Link to article here

See also
Yahoo! News UK and Ireland
EU Referendum Debate 'Damaging Economic Growth'

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Evening Standard

Investment key to Britain's recovery, say London School of Economics

Investment in education, infrastructure and innovation are the keys to Britain's recovery from recession and long-term growth over the coming 50 years, a report said today. The London School of Economics Growth Commission urged all political parties to come together behind the proposals in its 'Manifesto for Growth', the result of a year-long inquiry into the reasons behind the current economic malaise.

This article was published in The Evening Standard on January 31, 2013
Link to article here

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Press Association
Investment key to economic recovery

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

MSN UK (Web)

Investment key to economic recovery

Investment in education, infrastructure and innovation are the keys to Britain's recovery from recession and long-term growth over the coming 50 years, a report says. The London School of Economics Growth Commission urged all political parties to come together behind the proposals in its "Manifesto for Growth", the result of a year-long inquiry into the reasons behind the current economic malaise.

This article was published in MSN UK online on January 31, 2013
Link to article here

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Investment key to economic recovery

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Investment key to economic recovery
Investment in education, infrastructure and innovation are the keys to Britain's recovery from recession and long-term growth over the coming 50 years, a report says. The London School of Economics Growth Commission urged all political parties to come together behind the proposals in its "Manifesto for Growth", the result of a year-long inquiry into the reasons.
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

BBC News - Business

Long-term thinking for the UK economy

Why do we spend so little time talking about what really matters? That's the question I once again asked myself, reading the final report of the London School of Economics' Growth Commission.

This article was published on BBC News - Business online on January 31, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Guardian

Household income data is measure of economic recovery, LSE panel says

Politicians should track progress in repairing Britain's recession-scarred economy by measuring how the average household is faring instead of focusing on GDP alone, according to a report by a panel of heavyweight economists. The London School of Economics Growth Commission, in findings published on Thursday, calls for statistics on median household income to be published regularly alongside quarterly GDP figures, and to be used as a measure of whether government policies are working. The high-level panel - including Nobel prizewinner Chris Pissarides, ex-BP boss John Browne, the three former Bank of England rate-setters Richard Lambert, Rachel Lomax and Tim Besley, as well as the LSE's John Van Reenen, director of its centre for economic performance - offers a series of prescriptions for tackling the long-term failings of the UK economy.

This article was published in the Guardian on January 31, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

Sky News

Press Review

Professor John Van Reenen was interviewed about the LSE Growth Commission report.

The interview was broadcast on Sky News on January 31, 2013

See also
BBC Norfolk
LSE Growth Commission report is mentioned.



Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Times

Britain needs infrastructure bank, say academics

An influentual group of academics and business leaders has called on the Government to create an independent infrastructure bank to mitigate the "political procrastination" that has deterred investors from making long-term commitments in Britain. The London School of Economics Growth Commission, whose members include Rachel Lomax, the former deputy governor of the Bank of England, and Sir Richard Lambert, the former head of the CBI, said that the lender should be based on the European Bank for Reconstruction and Development and would help to boost long-term growth in the UK.

This article was published in The Times on January 31, 2013
Link to article

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013 download here

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Daily Mail

Failing schools ‘hampering economy': Britain will not prosper unless education is overhauled, report warns

Written by a Nobel Prize-winning economist as well as former members of the Bank of England, the report from the London School of Economics calls for radical change to get the UK growing again.

This article was published in The Daily Mail on January 31, 2013
Link to article

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013 download here

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Evening Standard

Anthony Hilton: Urgent need is for a growth agenda

The most pressing question of our time for politicians - and indeed for the public - is why Britain is finding it so hard to grow and what, if anything, can be done about it. Business Secretary Vince Cable gave his take on things at an event organised by the think tank Politeia in Guildhall last night… Then today came the reality check in the form of a document called Investing For Prosperity. It is produced by the London School of Economics Growth Commission, a heavyweight group that includes former BP chief Lord Browne, former Deputy Governor of the Bank of England Rachel Lomax, one-time CBI director-general Richard Lambert and economists Nicholas Stern and Tim Besley. They come straight to the point...

This article was published in the Evening Standard on January 31, 2013
Link to article

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013 download here

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Daily Telegraph

UK needs industrial strategy, LSE economists say

Britain urgently needs new institutions to ensure vital infrastructure projects are not derailed by political indecision if the country is to prosper in the future, the London School of Economics has demanded in a "manifesto for growth".

This article was published in The Daily Telegraph on January 31, 2013
Link to article

Related publications
LSE Growth Commission Report - Investing for Prosperity: Skills, Infrastructure and Innovation, by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013 download here

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
LSE Growth Commission website

News Posted: 31/01/2013      [Back to the Top]

The Financial Times

Britain needs a long-term prosperity plan

Article by John Van Reenen and Richard Lambert
The UK needs to provide investors with incentives, write John Van Reenen and Richard Lambert. Creating a successful economy requires sustained investment of three basic kinds: people, infrastructure and innovation. This is what drives the increases in productivity on which prosperity depends. Government has a central part to play and needs to develop the right structures to support economic activity and achieve continuity.

This article was published by the Financial Times on January 30, 2013
Link to article here

Related publications
LSE Growth Commission Report - 'Investing for Prosperity: Skills, Infrastructure and Innovation', by Philippe Aghion, Timothy Besley, John Browne, Francesco Caselli, Richard Lambert, Rachel Lomax, Christopher Pissarides, Nick Stern and John Van Reenen, January 2013
Download

Related links
Francesco Caselli webpage
Christopher Pissarides webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage
Macro Programme webpage
LSE Growth Commission website

News Posted: 30/01/2013      [Back to the Top]

The Agenda

The power of good management

One of my pet causes is the importance of good management. Nicholas Bloom and John Van Reenen have observed that management quality can account much of the persistent difference in productivity across firms in a given sector, and indeed for much of the productivity gap across countries. And so promoting the diffusion of good management practices is arguably one of the best things policymakers can do.

This article was published in The Agenda online on January 30, 2013
Link to article

Related publications
'Management Practices Across Firms and Countries', Nicholas Bloom, Christos Genakos, Rafaella Sadun and John Van Reenen, CEP Discussion Paper No.1109, December 2011

Related links
Nicholas Bloom webpage
Christos Genakos webpage
Rafaella Sadun webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 30/01/2013      [Back to the Top]

Forbes

The value of management consulting: proven

Now we have science saying it: management consultants add value. A formal study, sponsored by the World Bank and using a control group of factories as well as a treatment group, quantified the results. First year economic benefits exceeded the cost of the consulting - with later years' benefits pure gravy. (Summary in Slate, details from Nick Bloom). The project examined textile factories in India, and I was initially somewhat skeptical that the results would apply here in the United States. After reading the details, I think that American managers can learn a lot from the study.

This article was published by Forbes on January 27, 2013
Link to article here

Related publications
Does Management Matter? Evidence from India, Nicholas Bloom, Benn Eifert, Aprajit Mahajan, David McKenzie and John Roberts, Quarterly Journal of Economics, Volume 128, Issue 1, February 2013
Does Management Matter? Evidence from India, Nicholas Bloom, Benn Eifert, Aprajit Mahajan, David McKenzie and John Roberts, Centre for Economic Performance Discussion Paper No.1042, January 2011

Related links
Nicholas Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 27/01/2013      [Back to the Top]