Results

CEP discussion paper

Measuring the prevalence and direction of innovation: a pilot approach using LLMs

This paper pilots a method for measuring firms? product and process innovation at scale. Our approach uses LLMs to complete a detailed innovation survey for a sample of 600,000 companies operating across 40 countries. Th...Read more...

CEP report

Skills for growth: what the UK can learn from international approaches for incentivising employer-based training

This report reviews international evidence on approaches to increasing employer investment in training, focusing on three broad models: coordination between employers and training providers; sector-based employment and t...Read more...

Blog

LSE Business Review:

ChatGPT or Zoom - which broke the career ladder?

Entry-level hiring has fallen sharply across white-collar work. An emerging explanation has been that generative AI is to blame. Drawing on their new study of hundreds of millions of hires and job adverts, Peter John Lam...Read more...

Blog

The Economics Show with Soumaya Keynes (podcast):

Will AI solve the productivity puzzle? With Nick Bloom

Productivity has been a problem for the past 15 years. In developed countries, weak demand, a lack of competition and a paucity of new ideas have all been blamed. Could AI finally reverse that trend? Soumaya speaks to St...Read more...

Blog

Project Syndicate:

Silicon, Not Software, Will Decide the AI Race

The AI race is no longer just about building better models. As competition shifts from scientific discovery to deployment, success increasingly depends on computing power, advanced semiconductors, physical infrastructure...Read more...

Blog

LSE Management:

How America out-deindustrialised Europe

Despite the prevailing narrative of Western deindustrialisation as one of a rigid Europe and a dynamic America, Richard Baldwin, Saul Estrin, and Bob Hancke argue that the comparison of the EU with the US turns this narr...Read more...

CEP occasional paper

UK national productivity trends: getting the data right

We compare standard productivity estimates of UK output per worker derived from the Labour Force Survey (LFS) with newly released estimates based on more reliable "Real Time Information" (RTI) administrative data. LFS-ba...Read more...

Blog

Polytechnique Insights:

Europe is falling behind, can it pick up the pace when it comes to innovation?

Philippe Aghion writes for Polytechnique Insights on how Europe must prepare its own AI strategy if it wishes to make up ground lost to the U.S. in terms of GDP per capita, productivity and disruptive innovations....Read more...

CEP discussion paper

The broken ladder: AI, remote work, and early-career hiring

Is generative AI replacing junior workers? A growing literature answers yes, citing large declines in early-career hiring concentrated in GenAI-exposed occupations. We argue that this verdict is premature because GenAI e...Read more...

CEP discussion paper

Skills, not scale: GenAI and technology adoption

Do the determinants of technology adoption depend on technological architecture? Using administrative data on Turkish firms from 2021 to 2024, we compare the adoption of traditional and generative artificial intelligence...Read more...

Blog

Federal Reserve Bank of Atlanta:

How Much Are Firms Spending on AI (and What Will Happen to Headcounts)?

Nicholas Bloom and his co-authors investigate AI adoption in firms to understand how much companies are spending on AI and what the impact will be on the composition of their workforces....Read more...

Blog

University of Oxford:

Expert Comment: The firms racing to replace people with AI will be the first to fall

Jan-Emmanuel De Neve, Professor of Economics and Behavioural Science at Oxford's Sa??d Business School and CEP Associate, argues that companies racing to replace staff with AI risk hollowing out their own future....Read more...

Blog

Transform work:

Transform work with Raffaella Sadun, Professor of Business Administration at Harvard Business School (podcast)

Raffaella's work sits at the intersection of economics, leadership, and the future of work. Drawing on large-scale data and real-world field experiments inside major companies, she explores how hybrid work is reshaping l...Read more...

Blog

The Conversation UK:

Electric vehicles pass tipping point, breaking the link with oil prices

When the Strait of Hormuz first closed in March and oil hit US$120 a barrel, a very old question came back: is this finally the moment electric vehicles take off for good - or just another false start? EVs have been here...Read more...

CEP discussion paper

The Economics of climate innovation: technology, climate policy, and the clean energy transition

We examine the economics of climate innovation and its role in the clean technology transition. It outlines the incentives, market failures, and policy levers that shape the development and diffusion of clean technologie...Read more...

Journal article

Italian Economic Journal:

Artificial intelligence in education: computer-assisted learning and AI-guided tutors

Artificial Intelligence (AI) and Computer-Assisted Learning (CAL) offer powerful tools to improve foundational skills and close educational gaps, with evidence showing meaningful gains in student performance, especially ...Read more...

CentrePiece article

Skills in the age of AI

A focus on wellbeing at work can help employees thrive....Read more...

Chapter

Labour markets and the future of work

in The London Consensus

New technologies are causing a restructuring of labour markets in many countries. While much has been written on how these technologies may destroy jobs, this chapter argues that they do not threaten the end of work but ...Read more...

External report

Strengthening Monitoring and Evaluation of Innovation Programs in the EU : Creating Ecosystems for Innovation in a Post-Coal Region Evidence from an RCT in the Czech Republic (English)

The Usti nad Labem and Karlovy Vary regions face persistent structural challenges as they transition away from coal-based industries. In response to these challenges, national and EU institutions have launched a coordina...Read more...

Blog

LSE IQ Podcast:

Is AI destroying the planet? (podcast)

Professor Nick Couldry, Dr Eugenie Dugoua, Ceara Carney | Artificial intelligence is transforming the world around us, offering increased productivity and promising to help tackle difficult problems like global warming. ...Read more...

Blog

LSE Politics and Policy:

AI for Good - impact through ethical technology

Artificial Intelligence is set to change our lives, but there are many doubts about whether this will be for the better. By looking at a case of non-surveillance application of AI used to help with crowd management, Tom ...Read more...

Blog

LSE:

How crowd crush prevention technology could keep us safe at events (video)

In this film, we explore how cutting-edge artificial intelligence is being developed to assist event security and police forces in managing public safety at large-scale gatherings. We speak with Professor Tom Kirchmaier ...Read more...

Blog

The ECB Blog:

AI can boost productivity - if firms use it

We constantly hear of exciting new ways AI tools can help to tackle economic problems and the productivity gains they bring. However, benefits can only materialize when firms actually use AI....Read more...

Blog

MIT Sloan Management Review:

Reskilling the Workforce With AI: Harvard Business School's Raffaella Sadun (podcast)

Harvard Business School professor Raffaella Sadun's research has historically focused on digital reskilling. Now, rapid technological changes - like AI - are reshaping the nature of work. Raffaella's research has explore...Read more...

Journal article

Small Business Economics :

Realizing expectations? High-impact entrepreneurship across countries

Comparative international entrepreneurship research has often used measures of high-growth expectations entrepreneurship to proxy for the construct of high-impact entrepreneurship. We revisit this practice by assessing t...Read more...

Blog

LSE Impact of Social Sciences:

AI can carry out qualitative research at unprecedented scale

The interactional skill of large language models enables them to carry out qualitative research interviews at speed and scale. Demonstrating the ability of these new techniques in a range of qualitative enquiries, Friedr...Read more...

CEP discussion paper

The new wave? The role of human capital and STEM skills in technology adoption in the UK

Which types of human capital influence the adoption of advanced technologies? We study the skill biased adoption of information and communication technologies (ICT) across two waves in the UK. Specifically, we compare th...Read more...

Blog

Project Syndicate:

China is exporting its AI surveillance state

Contrary to what many Western policymakers and commentators once hoped, recent analyses have added to the evidence that trade does not always foster democracy or liberalize regimes. Instead, China's greater integration w...Read more...

Blog

Harvard Business Review:

Designing a successful reskilling program

In this article, written as a follow up to the award-winning "Reskilling in the Age of AI", the authors report the results of a reskilling survey that they conducted with chief human resource officers from approximately ...Read more...

Blog

Project Syndicate:

Should Workers Fear AI?

While hand-wringing about AI's implications for work and labour markets is understandable, economic history and current data make clear that the most common fears are largely overblown. Current applications are nowhere n...Read more...

Blog

LSE Business Review:

How the most recent AI wave affects jobs

With rapid progress in natural language processing and image generation, AI now affects creative occupations, which were previously considered safe from automation. Cecily Josten and Grace Lordan write that new approache...Read more...

Blog

Vox EU:

Tracking the skills behind the AI boom: Evidence from 14 OECD countries

As artificial intelligence rapidly reshapes economies and societies, companies are seeking professionals with AI-related skills. This column uses data from online job postings to explore changes in the demand for these p...Read more...

CEP discussion paper

Has financial fair play changed European football?

In 2011 UEFA, the governing body of European football, introduced the Financial Fair Play Regulation (FFPR), consisting of a set of financial restraints to be met by clubs as a prerequisite for participation to its compe...Read more...

Blog

LSE Business Review:

Christopher Pissarides: 'The more I study AI, the more optimistic I get about the labour market'

The rapid developments in artificial intelligence have been causing fears that many jobs will disappear. But Christopher Pissarides sees reason for optimism. In this Q&A with Maayan Arad, he says that the need to deal wi...Read more...

Blog

LSE iQ:

Is AI coming for our jobs? (podcast)

Maayan Arad speaks to experts about Artificial Intelligence (AI) in the courtroom, and what might happen if robots take over the roles of judges. And explore how journalism and other professional fields could be affected...Read more...

Journal article

Sports Economics Review:

Has financial fair play changed European football?

In 2011 UEFA, the governing body of European football, introduced the Financial Fair Play Regulation (FFPR), consisting of a set of financial restraints to be met by clubs as a prerequisite for participation to its compe...Read more...

Journal article

Fiscal Studies:

New approaches to measuring welfare

Economics has traditionally understood 'welfare' (what makes a life go well) as the satisfaction of preference. This conceptualisation of welfare is typically measured using revealed preferences, proxied through income a...Read more...

Journal article

Industrial and Corporate Change :

Industry concentration in Europe and North America

This paper presents new evidence on industry concentration at both the country and the world-region levels. It calculates country-level industry concentration measures from the novel data representative of the entire fir...Read more...

Journal article

The Review of Economics and Statistics:

Data-intensive innovation and the state: evidence from AI firms in China

Developing AI technology requires data. In many domains, government data far exceeds in magnitude and scope data collected by the private sector, and AI firms often gain access to such data when providing services to the...Read more...

Chapter

The effects of automation on labor demand: a survey of the recent literature

in Robots and AI - a new economic era

Robots and artificial intelligence (AI) are powerful forces that will likely have large impacts on the size, direction, and composition of international trade flows. This book discusses how industrial robots, automation,...Read more...

CEP Insights

Jobs and wages

Most working-age adults depend on earnings from jobs as their main source of income. Understanding the labour market has always been a central part of research at CEP and its predecessor the Centre for Labour Economics....Read more...

Blog

Innovation Growth Lab:

Lessons on designing tech RCTs with SMEs

Capucine Riom, Anna Valero and Juliana Oliveira-Cunha look at how new technology based on artificial intelligence can be used to help small and medium-sized businesses improve productivity....Read more...

Blog

VoxEU:

Autocratic AI dystopias: from science fiction to social science fact

The growth of artificial intelligence technology brings the potential of a 'fourth industrial revolution', but also poses challenges for democratic institutions. This column analyses the mutually reinforcing relationship...Read more...

Journal article

Journal of Business and Economic Statistics:

Analyzing subjective well-being data with misclassification

We use novel nonparametric techniques to test for the presence of nonclassical measurement error in reported life satisfaction (LS) and study the potential effects from ignoring it. Our dataset comes from Wave 3 of the U...Read more...

Journal article

Quarterly Journal of Economics:

Measuring aggregate price indices with taste shocks: theory and evidence for CES preferences

We develop an approach to measuring the cost of living for CES preferences that treats demand shocks as taste shocks that are equivalent to price shocks. In the presence of relative taste shocks, the Sato-Vartia price in...Read more...

CEP discussion paper

Industry concentration in Europe and North America

This report presents new evidence on industry concentration trends in Europe and in North America. It uses two novel data sources: representative firm-level concentration measures from the OECD MultiProd project, and bus...Read more...

CEP discussion paper

The hospital as a multi-product firm: the effect of hospital competition on value-added indicators of clinical quality

There is increasing international interest in using Patient Reported Outcome Measures (PROMs) to assess health care provider performance. PROMs are a fundamental advance on existing indicators of health care quality in t...Read more...

CEP occasional paper

Has the growth of real GDP in the UK been overstated because of mis-measurement of banking output?

If official figures overstated the growth of banking output in the UK in the recent boom, does this mean that GDP growth was overstated too? The answer is no. It is truer to say that if banking output was overstated then...Read more...

CEP discussion paper

On the Measurement of Trade Costs: Direct vs. Indirect Approaches to Quantifying Standards and Technical Regulations

In this article, we review the literature on the measurement of trade costs in international trade with a special emphasis on nontariff measures and in particular on standards and technical regulations. We distinguish `d...Read more...

CEP discussion paper

Productivity Spreads, Market Power Spreads and Trade

Much of recent Trade theory focuses on heterogeneity of firms and the differential impact trade policy might have on firms with different levels of productivity. A common problem is that most firm level dataset do not co...Read more...

CEP discussion paper

How to Measure Living Standards and Productivity

This paper sets out a general algorithm for calculating true cost-of-living indices or true producer price indices when demand is not homothetic, i.e. when not all expenditure elasticities are equal to one. In principle,...Read more...

CEP discussion paper

Productivity Dispersion, Competition and Productivity Measurement

A startling fact of firm level productivity analysis is the large and persistent differences in both labour productivity and total factor productivity (TFP) between firms in narrowly defined sectoral classes. The competi...Read more...

CEP discussion paper

Matchmaking: the Influence of Monitoring Environments on the Effectiveness of Performance Pay Systems

This study uses cross-section and panel data from the 1998 Workplace Employee Relations Survey to explore contextual influences on the relationship between performance-related pay (PRP) and organizational performance. Wh...Read more...

CEP discussion paper

Does Performance Pay De-Motivate, and Does It Matter?

The sheer scale and speed of the shift of payment system from time-based salaries to performance-related pay, PRP, in the British public services provides a unique opportunity to test the effects of incentive pay schemes...Read more...

CEP discussion paper

Why Does Performance Pay De-Motivate: Financial Incentives versus Perfrormance Appraisal

The sheer scale and speed of the shift of payment system from time-based salaries to performance-related pay, PRP, in the British public services provides a unique opportunity to test the effects of incentive pay schemes...Read more...