Technological change

CEP discussion paper

Markups, intangible capital and heterogeneous financial frictions

This paper studies the interaction between financial frictions, intangible investment decisions, and markups at the firm level. In our model, heterogeneous credit constraints distort firms' decisions to invest in cost-re...Read more...

Blog

Institute for the Future of Work:

The impact of Covid-19 on technology adoption

Anna Valero and Professor John Van Reenen examine the evidence on technology adoption through the pandemic and what it means for the UK's future of work and productivity crisis. New evidence offers a basis for guarded te...Read more...

CEP Covid-19 analysis

Innovation for a strong and sustainable recovery

In the recovery from Covid-19, innovation and diffusion will be key to addressing several structural challenges facing the UK economy. These include improving the UK’s longstanding poor productivity performance, addressi...Read more...

Blog

FE Week:

Why urgent support is needed to address UK skills deficit

New incentives are needed for businesses to train their employees for a post-Covid world, writes Guglielmo Ventura....Read more...

CEP discussion paper

Are bigger banks better? Firm-level evidence from Germany

The effects of large banks on the real economy are theoretically ambiguous and politically controversial. I identify quasi-exogenous increases in bank size in post-war Germany. I show that firms did not grow faster after...Read more...

Blog

LSE Business Review:

How leading economists view antitrust in the digital economy

US and European experts discuss internet giants, and Google's dominance of search and operating practices, writes Romesh Vaitilingam...Read more...

CEP discussion paper

Automation, globalization and vanishing jobs: a labor market sorting view

We show, theoretically and empirically, that the effects of technological change associated with automation and offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search ...Read more...

Blog

LSE Business Review:

Technology can benefit a few superstar workers, at the expense of everyone else

The rollout of television provides a natural experiment, creating an opportunity to isolate the impact of a technical disruption on the labour market, writes Felix Koenig....Read more...

Journal article

The Quarterly Journal of Economics:

The fall of the labor share and the rise of superstar firms

The fall of labor's share of GDP in the United States and many other countries in recent decades is well documented but its causes remain uncertain. Existing empirical assessments typically rely on industry or macro data...Read more...

CEP discussion paper

The innovation premium to soft skills in low-skilled occupations

Matched employee-employer data from the UK are used to analyze the wage premium to working in an innovative firm. We find that firms that are more R&D intensive pay higher wages on average, and this is particularly true ...Read more...

Journal article

Fiscal Studies:

Have R&D Spillovers Declined in the 21st Century?

Slow growth over the last decade has prompted policy attention towards increasing R&D spending, often via the tax system. We examine the impact of R&D on firm performance, both by the firm's own investments and through p...Read more...

CentrePiece article

When machines replace people: individual consequences of occupational decline

What happens to people's careers when demand for their occupations declines, often as a result of technological change? Guy Michaels and colleagues' analysis of detailed occupational data on Swedish workers over several ...Read more...

CEP discussion paper

The best versus the rest: divergence across firms during the global productivity slowdown

We document that labor productivity of the globally most productive firms – the “frontier” – has diverged from all other firms – the “rest” – throughout the 2000s. This divergence remains after controlling for capital in...Read more...

CEP discussion paper

Individual consequences of occupational decline

What are the earnings and employment losses that workers suffer when demand for their occupations declines? To answer this question we combine forecasts on occupational employment changes, which allow us to identify unan...Read more...

Journal article

Review of Economics and Statistics:

Robots at work

We analyze for the first time the economic contributions of modern industrial robots, which are flexible, versatile, and autonomous machines. We use novel panel data on robot adoption within industries in seventeen count...Read more...

Journal article

Economic Policy:

The productivity puzzle and misallocation: an Italian perspective

Productivity has recently slowed down in many economies around the world. A crucial challenge in understanding what lies behind this 'productivity puzzle' is the still short time span for which data can be analysed. An e...Read more...

CentrePiece article

In brief... Is technology to blame for jobless recoveries?

Since the early 1990s, the United States has been plagued by weak employment growth when emerging from recessions – so-called ‘jobless recoveries’. Georg Graetz and Guy Michaels look at multiple recoveries elsewhere in t...Read more...

CEP discussion paper

Is modern technology responsible for jobless recoveries?

Since the early 1990s, recoveries from recessions in the US have been plagued by weak employment growth. One possible explanation for these “jobless” recoveries is rooted in technological change: middle-skill jobs, often...Read more...

CentrePiece article

Robots at work: the impact on productivity and jobs

Robots may seem dangerous not only to cinema action heroes but also to the average manufacturing worker.To assess whether such concerns are well founded, Guy Michaels and Georg Graetz analyse the labour market effects of...Read more...

CEP discussion paper

Robots at work

Despite ubiquitous discussions of robots’ potential impact, there is almost no systematic empirical evidence on their economic effects. In this paper we analyze for the first time the economic impact of industrial robots...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Employment and Technological Change: On the Geography of Labour Market Adjustments

This paper investigates the impact of technological change on local labour market outcomes in Britain. Using a newly assembled panel database for the period 2000-2007 and a directly observed measure of technological chan...Read more...

Journal article

Review of Economics and Statistics:

Has ICT polarized skill demand? Evidence from eleven countries over twenty-five years

We test the hypothesis that information and communication technologies (ICT) polarize labor markets by increasing demand for the highly educated at the expense of the middle educated, with little effect on low-educated w...Read more...

Journal article

American Economic Review:

Innovation and institutional ownership

We find that greater institutional ownership is associated with more innovation. To explore the mechanism, we contrast the "lazy manager" hypothesis with a model where institutional owners increase innovation incentives ...Read more...

Journal article

The Quarterly Journal of Economics:

Does management matter? Evidence from India

A long-standing question is whether differences in management practices across firms can explain differences in productivity, especially in developing countries where these spreads appear particularly large. To investiga...Read more...

CEP discussion paper

Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market

This paper investigates the impact of the EU Emissions Trading Scheme (EU ETS) on technological change. We exploit installations-level inclusion criteria to estimate the impact of the EU ETS on firms patenting. We find t...Read more...

Journal article

American Economic Review:

Americans do IT better: US multinationals and the productivity miracle

US productivity growth accelerated after 1995 (unlike Europe's), particularly in sectors that intensively use information technologies (IT). Using two new micro panel datasets we show that US multinationals operating in ...Read more...

CEP discussion paper

Service Trade and Occupational Tasks: An Empirical Investigation

Using micro data for Belgium we investigate the relationship between occupational tasks changes and the rise of service trade. We focus the analysis on the extensive margin and look at the heterogeneous proliferation of ...Read more...

CEP discussion paper

Does Management Matter? Evidence from India

A long-standing question in social science is to what extent differences in management cause differences in firm performance. To investigate this we ran a management field experiment on large Indian textile firms. We pro...Read more...

CEP discussion paper

Import Competition from and Outsourcing to China: A Curse or Blessing for Firms?

We use Belgian manufacturing firm-level data over the period 1996- 2007 to analyze the impact of imports from different origins on firm growth, exit, and skill upgrading. For this purpose we use both industry-level and f...Read more...

CEP discussion paper

The Macroeconomic Role of Unemployment Compensation

The standard motivation for unemployment compensation is consumption smoothing and most papers in the literature have analyzed trade-offs involving consumption smoothing and moral hazard. This paper shows how such policy...Read more...

CEP discussion paper

The Division of Labor, Coordination, and the Demand for Information Processing

Since Adam Smith’s time, the division of labor in production has increased significantly, while information processing has become an important part of work. This paper examines whether the need to coordinate an increasin...Read more...

CEP discussion paper

Jeremy Greenwood and Per Krusell, 'Growth Accounting with Investment-Specific Technological Progress: A Discussion of Two Approaches' A Rejoinder

The May 2007 issue of the Journal of Monetary Economics published a paper of mine entitled ‘Investment-Specific Technological Progress and Growth Accounting’ which critiqued the work of Greenwood, Hercowitz and Krusell. ...Read more...

Journal article

The Quarterly Journal of Economics:

Technology and changes in skill structure: evidence from seven OECD countries

This paper compares the changing skill structure of wage bills and employment in the United States with six other OECD countries (Denmark, France, Germany, Japan, Sweden, and the United Kingdom). We investigate whether a...Read more...

Journal article

The Quarterly Journal of Economics:

The creation and capture of rents: wages and innovation in a panel of UK companies

This paper examines the impact of technological innovation on wages using a panel of British firms. A head-count measure of major innovations between 1945 and 1983 is combined with share price and accounting information....Read more...