Results

CEP discussion paper

Accidents will happen: (de)regulation of health and safety legislation, workplace accidents and self employment

In 2015, the UK government exempted "low-risk" self-employed workers from legislation on workplace safety. This reversed a move two decades earlier that incorporated the self-employed more fully into the same regulatory ...Read more...

Blog

LSE Blogs:

How multinationals exploited a health crisis to accelerate deforestation in Liberia

The way multinational enterprises conduct themselves during periods of crisis, such as an epidemic, is of key importance in light of the Covid-19 pandemic. A health crisis may alter the short-run incentives of some multi...Read more...

CEP Insights

Wellbeing

As societies become richer, they do not become happier. This paradox has led to a growing interest in the science of wellbeing, and how policymakers can evaluate policies in terms of what will improve wellbeing. Economis...Read more...

Blog

LSE Blogs:

Why wellbeing should be the goal of policy

Wherever there is a fixed budget constraint, money should be allocated to policies which give the greatest increase in wellbeing per pound of expenditure, argues Richard Layard. Even policy-makers unmoved by wellbeing as...Read more...

Blog

LSE Business Review:

Have you quit your New Year's resolution by Quitter's Day?

Many people make New Year's resolutions, but by mid-January most resolutions will have been left aside. Workouts are skipped in favour of Netflix. Salads are shunned in favour of pasta. And across the UK Dry January is r...Read more...

Blog

LSE Blogs:

Prosociality and the pandemic: adolescents from poorer backgrounds suffered more

Camille Terrier, Daniel L Chen and Matthias Sutter look at how Covid-19 infections affected adolescents' prosociality, an essential non-cognitive skill. The prosociality gap between students with high and low socio-econo...Read more...

CEP discussion paper

Air pollution and innovation

Existing estimates of the economic costs of air pollution do not account for its effect on inventive output. Using two weather phenomena as instruments, we estimate this effect in a sample of 1,288 European regions. A de...Read more...

Blog

LSE Business Review:

How new technology can help clinical quality, productivity, and the healthcare workforce

Health information and communication technology (HICT) holds enormous potential to improve productivity. Several countries, the UK and the US included, have embraced this idea and spent billions of dollars on promoting H...Read more...

CEP discussion paper

"Better the devil you know": are stated preferences over health and happiness determined by how healthy and happy people are?

Most people want to be both happy and healthy. But which matters most when there is a trade-off between them? This paper addresses this question by asking 4,000 members of the public in the UK and the US to make various ...Read more...

CentrePiece article

Happy to help: NHS volunteering in Covid-19 times

The Covid-19 crisis prompted thousands to register as NHS Volunteer Responders, helping vulnerable people with small daily tasks like shopping. Christian Krekel and colleagues find big increases in wellbeing among those ...Read more...

Blog

LSE Blogs:

Vaccines for developing countries: the costs and benefits of waiving patents

There is much debate about whether the patents on COVID-19 vaccines should be waived to allow low-income countries to produce doses for themselves. The Initiative on Global Markets Forum's survey asked European and US ex...Read more...

Journal article

Economics and Human Biology:

Prenatal economic shocks and birth outcomes in UK cohort data

We consider the effects of major prenatal economic shocks experienced by mothers on two indicators of newborn-infant health, birth weight and head circumference, using detailed microdata from the UK ALSPAC survey. Contro...Read more...

Blog

VoxEU:

Lockdowns widen the gender gap in mental health

Women, the young, and the less educated have borne the brunt of the economic damage caused by the Covid-19 pandemic and lockdowns in terms of job and earnings losses. As this column reports, women have also suffered far ...Read more...

Blog

VoxEU:

Aiming for zero Covid-19 to ensure economic growth

With the pandemic continuing now for over a year, it has become clear that there is no trade-off between health and wealth. Successful pandemic management has relied on aiming for and protecting Covid-free green zones. T...Read more...

Blog

LSE Blogs:

Almost two-thirds of Black British young people would be reluctant to get a COVID vaccine

We may need to vaccinate under-18s to get the pandemic under control. Patrick Sturgis (LSE), Lindsey Macmillan, Jake Anders and Gill Wyness (UCL Institute of Education) on the findings of a UCL CEPEO / LSE COVID-19 surve...Read more...

Blog

Economics Observatory:

How have school closures affected children's mental health?

Children in year groups that were not priorities to return to school before the 2020 summer holidays experienced greater average declines in their mental health. As schools re-open, it is vital to balance efforts to make...Read more...

Blog

LSE Blogs:

How a focus on wellbeing can help us make better policy decisions

Deaths, hospitalisations and cases have been the default metrics for policymakers during the pandemic. Paul Dolan (LSE) and a team of behavioural science experts propose a broader way of measuring policy outcomes that co...Read more...

Journal article

Journal of Economic Behavior and Organization:

Job quality and workplace gender diversity in Europe

We here consider the relationship between workplace gender measures and employees’ perceived job quality, where the former cover both the gender mix of workers with the same job title and the gender of the immediate boss...Read more...

Journal article

Journal of Economic Behavior and Organization:

Early-life correlates of later-life well-being: Evidence from the Wisconsin Longitudinal Study

We here use data from the Wisconsin Longitudinal Study (WLS) to provide one of the first analyses of the distal (early-life) and proximal (later-life) correlates of older-life subjective well-being. Unusually, we have tw...Read more...

CEP discussion paper

Quality of life in a dynamic spatial model

We develop a dynamic spatial model in which heterogeneous workers are imperfectly mobile and forward-looking and yet all structural fundamentals can be inverted without assuming that the economy is in a stationary spatia...Read more...

CEP discussion paper

The social determinants of choice quality: evidence from health insurance in the Netherlands

Market provision of impure public goods such as insurance, retirement savings and education is common and growing as policy makers seek to offer more choice and gain efficiencies. This approach induces an important trade...Read more...

Journal article

Economic Policy:

School choice during a period of radical school reform. Evidence from academy conversion in England

We study how demand responds to the rebranding of existing state schools as autonomous 'academies' in the context of a radical and large-scale reform to the English education system. The academy programme encouraged scho...Read more...

Journal article

Early Childhood Research Quarterly:

The when and what of measuring ECE quality: Analysis of variation in the Classroom Assessment Scoring System (CLASS) across the ECE day

Observational assessment has become an integral component of the quality improvement agenda in Early Care and Education (ECE) and has been significant in directing attention to quality of interactions within the ECE sett...Read more...

CEP discussion paper

Parental well-being in times of Covid-19 in Germany

We examine the differential effects of Covid-19 and related restrictions on individuals with dependent children in Germany. We specifically focus on the role of school and day care center closures, which may be regarded ...Read more...

CEP discussion paper

Center-based care and parenting activities

We estimate the effects of center-based care on parenting activities with children using data from time diaries and a family survey for Germany. Our estimates imply that usage of center-based care reduces the amount of t...Read more...

CEP discussion paper

Why are pollution damages lower in developed countries? Insights from high income, high-particulate matter Hong Kong

Conventional wisdom suggests that marginal damages from particulate matter pollution are high in less-developed countries because they are highly polluted. Using administrative data on the universe of births and deaths, ...Read more...

External publication

World Happiness Report 2020

The World Happiness Report is a landmark survey of the state of global happiness that ranks 156 countries by how happy their citizens perceive themselves to be. The World Happiness Report 2020 for the first time ranks ci...Read more...

CEP occasional paper

When to release the lockdown: A wellbeing framework for analysing costs and benefits

In choosing when to end the lockdown, policy-makers have to balance the impact of the decision upon incomes, unemployment, mental health, public confidence and many other factors, as well as (of course) upon the number o...Read more...

CEP discussion paper

On the productivity advantage of cities

Ever since Marshall (1890) agglomeration externalities have been viewed as the key factor explaining the existence of cities and their size. However, while the various micro foundations of agglomeration externalities str...Read more...

CEP discussion paper

Machiavelli versus concave utility functions: should bads be spread out or concentrated?

Is wellbeing higher if the same number of negative events is spread out rather than bunched in time? Should positive events be spread out or bunched? We answer these questions exploiting quarterly data on six positive an...Read more...

CEP election analysis

#GE2019Economists: the research evidence on key issues for voters in the 2019 UK General Election

The general election of 2019 was called after negotiations over how the UK should leave the European Union became increasingly tortuous. While Brexit may have been the trigger for the election, it was far from being the ...Read more...

CEP election analysis

Health and social care

The National Health Service (NHS) is arguably the one national institution that unifies the country in terms of general public support. But there is growing concern about the long-term sustainability of the NHS, with 57%...Read more...

CEP discussion paper

Understanding day care enrolment gaps

We document day care enrolment gaps by family background in a country with a universal day care system (Germany). Research demonstrates that children of less educated or foreign-born parents can benefit the most from day...Read more...

CEP discussion paper

Dirty density: air quality and the density of American cities

We study whether urban density affects the exposure of city dwellers to ambient air pollution using satellite-derived measures of air quality for the contiguous United States. For identification, we rely on an instrument...Read more...

Journal article

Economica:

Who Got the Brexit Blues? The Effect of Brexit on Subjective Wellbeing in the UK

We use the 2015–16 waves of the UK Household Longitudinal Study (Understanding Society) to look at subjective wellbeing around the time of the June 2016 EU membership Referendum in the UK (Brexit). We employ measures of ...Read more...

CentrePiece article

Healthy Minds: the positive impact of a new school curriculum

As the UK government prepares to make personal, social, health and economic (PSHE) education compulsory, a recent trial shows how these subjects can be taught successfully. Grace Lordan and Alistair McGuire evaluate the ...Read more...

CEP discussion paper

Widening the high school curriculum to include soft skill training: impacts on health, behaviour, emotional wellbeing and occupational aspirations

From 2020 the health and relationships aspects of Personal, Social, Health and Economic Education will be compulsory in UK schools for adolescents. However less is known about how it can be taught in an effective manner....Read more...

Blog

LSE British Politics and Policy:

Childhood circumstances and young adult outcomes: the role of parental financial problems

Is there a relationship between childhood circumstances and outcomes later on in life? Andrew E. Clark, Conchita D’Ambrosio, and Marta Barazzetta consider the cognitive and non-cognitive consequences on young adults who ...Read more...

Journal article

SSM - Population Health:

Crime victimisation over time and sleep quality

We here consider the relationship between the individual time profile of crime victimisation and sleep quality. Sleep quality worsens with contemporaneous crime victimisation, with physical violence having a larger effec...Read more...

Journal article

Health Affairs:

Hospital prices grew substantially faster than physician prices for hospital-based care in 2007-14

Evidence suggests that growth in providers' prices drives growth in health care spending on the privately insured. However, existing work has not systematically differentiated between the growth rate of hospital prices a...Read more...

Journal article

Health Affairs:

Variation in health spending growth for the privately insured from 2007 to 2014

We examined the growth in health spending on people with employer-sponsored private insurance in the period 2007-14. Our analysis relied on information from the Health Care Cost Institute data set, which includes insuran...Read more...

Journal article

The Lancet:

Transparency about the outcomes of mental health services (IAPT approach): an analysis of public data

Background: Internationally, the clinical outcomes of routine mental health services are rarely recorded or reported; however, an exception is the English Improving Access to Psychological Therapies (IAPT) service, which...Read more...

Journal article

Journal of Health Economics:

Convenient primary care and emergency hospital utilisation

Participation and utilisation decisions lie at the heart of many public policy questions. I contribute new evidence by using hospital records to examine how access to primary care services affects utilisation of hospital...Read more...

CentrePiece article

Aid: it’s not just about the money

For more than a decade, CEP research associate Peter Boone and his colleagues at Effective Intervention have been running health and education programmes in some of the poorest parts of the world. As he recounts here, th...Read more...

Journal article

Social Science and Medicine:

Life satisfaction, QALYs, and the monetary value of health

The monetary value of a quality-adjusted life-year (QALY) is frequently used to assess the benefits of health interventions and inform funding decisions. However, there is little consensus on methods for the estimation o...Read more...

CEP discussion paper

Managing trade: evidence from China and the US

We study how management practices shape export performance using matched production-trade-management data for Chinese and American firms and a randomized control trial in India. Better managed firms are more likely to ex...Read more...

CEP discussion paper

Medical marijuana laws and mental health in the United States

The consequences of legal access to medical marijuana for individual welfare are a matter of controversy. We contribute to the ongoing discussion by evaluating the impact of the staggered introduction and extension of me...Read more...

CentrePiece article

Nursery attendance and children's outcomes

The UK government has expanded the popular ‘free entitlement’ to part-time early education and care from a universal 15 hours per week to 30 hours per week for working parents. But research by Jo Blanden and co-authors r...Read more...

Journal article

The Economic Journal:

Locus of Control and its Intergenerational Implications for Early Childhood Skill Formation

This article builds upon Cunha's (2015) subjective rationality model in which parents have a subjective belief about the impact of their investment on their children's early skill formation. We propose that this subjecti...Read more...

Journal article

American Journal of Health Economics:

Do you have to win it to fix it?: A longitudinal study of lottery winners and their health-care demand

We exploit lottery wins to investigate the effects of exogenous changes to individuals' income on the utilization of health-care services, and the choice between private and public health care in the United Kingdom. Our ...Read more...

CEP discussion paper

Surprise! Out-of-network billing for emergency care in the United States

Using insurance claims data capturing 8.9 million emergency episodes, we show that in 22% of cases, patients attended in-network hospitals, but were treated by out-of-network physicians. We find that out-of-network billi...Read more...

CEP discussion paper

Politics, hospital behaviour and health care spending

This paper examines the link between legislative politics, hospital behaviour, and health care spending. When trying to pass sweeping legislation, congressional leaders can attract votes by adding targeted provisions tha...Read more...

Journal article

Journal of Economic Perspectives:

The economic consequences of family policies: lessons from a century of legislation in high-income countries

By the early 21st century, most high-income countries have put into effect a host of generous and virtually gender-neutral parental leave policies and family benefits, with the multiple goals of gender equity, higher fer...Read more...

CEP discussion paper

Aggregating from micro to macro patterns of trade

We develop a new framework for aggregating from micro to macro patterns of trade. We derive price indexes that determine comparative advantage across countries and sectors and the aggregate cost of living. If firms and p...Read more...

CEP discussion paper

Early-life correlates of later-life well-being: evidence from the Wisconsin longitudinal study

We here use data from the Wisconsin Longitudinal Study (WLS) to provide one of the first analyses of the distal (early-life) and proximal (later-life) correlates of older-life subjective well-being. Unusually, we have tw...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Social Tenants' Health: Evaluating the Effectiveness of Landlord Interventions

Objectives: To test whether a social landlord can improve health outcomes for older tenants and reduce their NHS usage by simple interventions. Design: Randomised controlled trial. Setting: Social housing in five London ...Read more...

Journal article

Journal of Health Economics:

Retirement blues

This paper analyses the short- and longer-term effects of retirement on mental health in ten European countries. It exploits thresholds created by state pension ages in an individual-fixed effects instrumental-variable s...Read more...

CEP discussion paper

The key determinants of happiness and misery

Understanding the key determinants of people’s life satisfaction will suggest policies for how best to reduce misery and promote wellbeing. This paper provides evidence from survey data on USA, Australia, Britain and Ind...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 election analysis

The NHS and Social Care: Prospects for Funding, Staffing and Performance into the 2020s

Health featured prominently in the 2016 referendum on the UK’s membership of the European Union (EU), with the Leave campaign’s claim that Brexit would mean that £350 million extra money per week could be transferred fro...Read more...

Journal article

The Quarterly Journal of Economics:

Smart and illicit: Who becomes an entrepreneur and do they earn more?

We disaggregate the self-employed into incorporated and unincorporated to distinguish between "entrepreneurs" and other business owners. We show that the incorporated self-employed and their businesses engage in activiti...Read more...

Blog

ESRC blog:

How English care homes have coped with the National Living Wage

Giulia Giupponi is an ESRC-funded PhD student at the London School of Economics and a research assistant at the Centre for Economic Performance. Stephen Machin is Professor of Economics at the London School of Economics ...Read more...

CEP discussion paper

Teacher quality, test scores and non-cognitive skills: evidence from primary school teachers in the UK

Schooling can produce both cognitive and non-cognitive skills, both of which are important determinants of adult outcomes. Using very rich data from a UK birth cohort study, I estimate teacher value added (VA) models for...Read more...

CentrePiece article

Origins of happiness

Understanding the key determinants of people’s life satisfaction makes it possible to suggest policies for how best to reduce misery and promote wellbeing. A forthcoming book by Richard Layard and colleagues discusses ev...Read more...

CEP discussion paper

Multi-product firms and product quality

We examine the global operations of multi-product firms. We present a flexible heterogeneous-firm trade model with either limited or strong scope for quality differentiation. Using customs data for China during 2002-2006...Read more...

CEP discussion paper

Quality in early years settings and children’s school achievement

Childcare quality is often thought to be important for influencing children’s subsequent attainment at school. The English Government regulates the quality of early education by setting minimum levels of qualifications f...Read more...

Journal article

Kyklos:

Do More of Those in Misery Suffer from Poverty, Unemployment or Mental Illness?

Studies of deprivation usually ignore mental illness. This paper uses household panel data from the USA, Australia, Britain and Germany to broaden the analysis. We ask first how many of those in the lowest levels of life...Read more...

Book

Origins of Happiness

What makes people happy? Why should governments care about people's well-being? How would policy change if well-being were the main objective? The Origins of Happiness seeks to revolutionize how we think about human prio...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Stimulative Effect of an Unconditional Block Grant on the Decentralized Provision of Care

Understanding the impact of central government grants on decentralized health care provision is of crucial importance for the design of grant systems, yet empirical evidence on the prevalence of flypaper effects in this ...Read more...

Journal article

Journal of International Economics:

Multi-product firms and product quality

We examine the global operations of multi-product firms. We present a flexible heterogeneous-firm trade model with either limited or strong scope for quality differentiation. Using customs data for China during 2002–2006...Read more...

CentrePiece article

In brief: Weekend opening of GP practices

Can increased access to GPs reduce overcrowding in hospitals' Accidents & Emergency departments? Research by Peter Dolton and Vikram Pathania assesses whether weekend GP opening hours introduced in 2013 in four surgeries...Read more...

Journal article

Applied Research in Quality of Life:

Estimating the Mental Health Effects of Social Isolation

It is frequently hypothesized that feelings of social isolation are detrimental for an individual’s mental health, however standard statistical models cannot estimate this effect due to reverse causality between the inde...Read more...

Blog

ESRC blog:

The ‘photo-finish effect’: when third place winners are happier than second

Laura Kudrna, a London School of Economics scholarship PhD candidate, researches the effects of achievement on happiness, particularly focusing on examples of when greater success – be it financial, academic, romantic, o...Read more...

CentrePiece article

A shortage of nurses?

The government’s Migration Advisory Committee (MAC) has reluctantly recommended that nurses remain on the ‘shortage occupation list’, while criticising the health sector for failing to maintain a sufficient supply of UK ...Read more...

Journal article

Gerontology:

Associations between neighborhood characteristics, well-being and health vary over the life course

Background: Neighborhood characteristics are important determinants of individual health and well-being. For example, characteristics such as noise and pollution affect health directly, while other characteristics affect...Read more...

Journal article

American Journal of Medical Research:

Why we should spend more on mental health

Mental health problems affect roughly 1 in 5 adults, and 1 in 10 children at any one time. In rich countries they cause roughly 40% of disability, absenteeism and underperformance at work, and cost some 7% of GDP. Under ...Read more...

CentrePiece article

Misery and mental health

Mental illness is a far bigger source of human misery than poverty or unemployment, according to research by Sarah Flèche and Richard Layard. They argue that we need to move beyond a purely materialistic conception of mi...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Taking Care of the Budget? Practice-level Outcomes during Commissioning Reforms in England

I investigate whether vesting budgets with doctors impacts treatment decisions and patients outcomes by exploiting the transitional phase of major recent health care reforms in England that passed budgets to consortia of...Read more...

Journal article

The Scandinavian Journal of Economics:

Valuing School Quality via a School Choice Reform

Among policymakers, educators, and economists, there remains a strong debate on the extent to which good schools matter. In this paper, we estimate school quality valuations based upon house prices, by considering a poli...Read more...

CEP discussion paper

The price ain't right? Hospital prices and health spending on the privately insured

We use insurance claims data covering 28 percent of individuals with employer-sponsored health insurance in the US to study the variation in health spending on the privately insured, examine the structure of insurer-hosp...Read more...

Journal article

Frontiers in Psychology:

Why more psychological therapy would cost nothing

To tackle the huge problem of mental illness, England has launched a large programme of psychological therapy, which is being watched worldwide. The authors argue that it costs nothing, due to savings on welfare benefits...Read more...

Blog

ESRC blog:

Making the world a happier place

Professor Lord Richard Layard directs the Wellbeing Programme at the ESRC Centre for Economic Performance, and has made major contributions on unemployment, inflation, inequality and post-Communist reform. Author of the ...Read more...

CEP discussion paper

Informal care and the great recession

Macroeconomic downturns can have both an important impact on the availability of informal care and the affordability of formal long-term care. This paper investigates how the demand for and provision of informal care cha...Read more...

CEP discussion paper

Do more of those in misery suffer from poverty, unemployment or mental illness?

Studies of deprivation usually ignore mental illness. This paper uses household panel data from the USA, Australia, Britain and Germany to broaden the analysis. We ask first how many of those in the lowest levels of life...Read more...

CEP election analysis

A New Priority for Mental Health

Mental illness (especially depression and chronic anxiety) is the biggest single cause of misery in advanced countries. But only one quarter of those who are ill receive treatment. Mental health is crucial for wellbeing ...Read more...

CEP election analysis

#ElectionEconomics: The Research Evidence on Key Issues for Voters in the 2015 UK General Election

Please see the CEP #ElectionEconomics report(Paper 1)and the Executive Summary (Paper 2) that cover all the election 2015 briefings, discussing the research evidence on 15 of the UK's key policy battlegrounds: immigratio...Read more...

Journal article

Labour Economics:

Mental health and education decisions

Mental health problems have been rising internationally. The link between poor mental health and low educational outcomes is particularly interesting in the case of the UK which has a low international ranking both on me...Read more...

CEP discussion paper

Do you have To win it to fix it? A longitudinal study of lottery winners and their health care demand

We exploit lottery wins to investigate the effects of exogenous changes to individuals' income on health care demand in the United Kingdom. This strategy allows us to estimate lottery income elasticities for a range of h...Read more...

Journal article

The Economic Journal:

Are You Happy While You Work?

Using a new data source permitting individuals to record their well-being via a smartphone, we explore within-person variance in individuals’ well-being measured momentarily at random points in time. We find paid work is...Read more...

CentrePiece article

Educational efficiency: value for money in public spending on schools

Which national education systems deliver the best value for money? Peter Dolton and colleagues rank 30 of the world’s richest countries based on their expenditure on teacher costs (which account for 80% of education budg...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Walk This Way: Estimating Impacts of Walk in Centres at Hospital Emergency Departments in the English National Health Service

In publicly funded health care systems policy-makers face a dilemma: placing low acuity emergency care services outside hospitals may widen access to care and divert patients from making costly hospital visits, but may a...Read more...

Journal article

Feature Issue:

What predicts a successful life? A life-course model of well-being

Policy makers who care about well-being need a recursive model of how adult life‐satisfaction is predicted by childhood influences, acting both directly and (indirectly) through adult circumstances. We estimate such a ...Read more...

CentrePiece article

Policy for better mental health

Treating mental illness should be a top national priority, especially as proven psychological therapies effectively cost nothing. Richard Layard explains how CEP research has led to a new deal for mental health – but muc...Read more...

CEP discussion paper

Education and Health Knowledge: Evidence from UK Compulsory Schooling Reforms

We investigate if there is a causal link between education and health knowledge using data from the 1984/85 and 1991/92 waves of the UK Health and Lifestyle Survey (HALS). Uniquely, the survey asks respondents what they ...Read more...

CEP discussion paper

Benford's Law, Families of Distributions and a Test Basis

Benford's Law is used to test for data irregularities. While novel, there are two weaknesses in the current methodology. First, test values used in practice are too conservative and the test values of this paper are more...Read more...

CEP discussion paper

Because I'm Worth It: A Lab-Field Experiment on the Spillover Effects of Incentives in Health

We conduct a controlled lab-field experiment to directly test the short-run spillover effects of one-off financial incentives in health. We consider how incentives affect effort in a physical activity task – and then how...Read more...

CEP discussion paper

Wealth Shocks and Health Outcomes: Evidence from Stock Market Fluctuations

Do wealth shocks affect the health of the elderly in developed countries? The economic literature is skeptical about such effects which have so far only been found for poor retirees in poor countries. In this paper I sho...Read more...

CEP discussion paper

What Predicts a Successful Life? A Life-Course Model of Well-Being

If policy-makers care about well-being, they need a recursive model of how adult life-satisfaction is predicted by childhood influences, acting both directly and (indirectly) through adult circumstances. We estimate such...Read more...

CEP discussion paper

Winning Big But Feeling No Better? The Effect of Lottery Prizes on Physical and Mental Health

We use British panel data to determine the exogenous impact of income on a number of individual health outcomes: general health status, mental health, physical health problems, and health behaviors (drinking and smoking)...Read more...

CentrePiece article

Free to choose? The impact of healthcare reform

Has the introduction of greater choice and competition in healthcare in England led to improved outcomes for patients? The authors assess changes in the quality of care that hospitals provided for cardiac surgery patient...Read more...

CEP discussion paper

The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia

Many economists and educators favour public support for education on the premise that education improves the overall well-being of citizens. However, little is known about the causal pathways through which education shap...Read more...

CEP discussion paper

Mental Health: The New Frontier for Labour Economics

This lecture argues that mental health is a major factor of production. It is the biggest single influence on life satisfaction, with mental health eight years earlier a more powerful explanatory factor than current inco...Read more...

Journal article

Journal of Urban Economics:

Valuing school quality using boundary discontinuities

Existing research shows that house prices respond to local school quality as measured by average test scores. However, higher test scores could signal higher academic value-added or higher ability, more sought-after inta...Read more...

CEP discussion paper

Moving Up and Sliding Down: An Empirical Assessment of the Effect of Social Mobility on Subjective Wellbeing

Many people remain in the same income group as their parents and this is a cause of much discussion and some concern. In this work, we examine how intergenerational mobility affects subjective wellbeing (SWB) using the B...Read more...

CEP discussion paper

Free to Choose? Reform and Demand Response in the English National Health Service

The impacts of choice in public services are controversial. We exploit a reform in the English National Health Service to assess the impact of relaxing constraints on patient choice. We estimate a demand model to evaluat...Read more...

CEP discussion paper

The Enduring Impact of Childhood Experience on Mental Health: Evidence Using Instrumented Co-Twin Data

The question of whether there is a lasting effect of childhood experience on mental health has eluded causal measurement. We draw upon identical twin data and econometric instrumentation to provide an unbiased answer. We...Read more...

CEP discussion paper

Taxes, Cigarette Consumption, and Smoking Intensity: Reply

This paper shows that smoking intensity, i.e. the amount of nicotine extracted per cigarette smoked, responds to changes in excise taxes and tobacco prices. We exploit data covering the period 1988 to 2006 across many US...Read more...

CentrePiece article

In brief: Mental illness and the NHS

Richard Layard and colleagues reveal the shocking scale of mental illness in Britain - and how little the NHS does about it....Read more...

CEP discussion paper

Musn't Grumble. Immigration, Health and Health Service Use in the UK and Germany

A rise in population caused by increased immigration, is sometimes accompanied by concerns that the increase in population puts additional or differential pressure on welfare services which might affect the net fiscal co...Read more...

CEP discussion paper

A Cautionary Note on Using Industry Affiliation to Predict Income

Many literatures investigate the causal impact of income on economic outcomes, for example in the context of intergenerational transmission or well-being and health. Some studies have proposed to use employer wage differ...Read more...

CEP discussion paper

Human Capital, Matching and Job Satisfaction

Using a model of wage determination developed by Stevens (2003) we offer an explanation of why tenure has a negative effect when entered in job satisfaction equations. If job satisfaction measures match quality, then the...Read more...

CEP report

How mental illness loses out in the NHS a report by the Centre for Economic Performance's Mental Health Policy Group

Mental illness accounts for a massive share of the total burden of disease. Even when we include the burden of premature death mental illness accounts for 23% of the total burden of disease. Yet, despite the existence of...Read more...

External publication

World Happiness Report 2012

The 2012 World Happiness Report, published by the Earth Institute and co-edited by the institute’s director, Jeffrey Sachs, reflects a new worldwide demand for more attention to happiness and absence of misery as criteri...Read more...

CEE/Education and skills discussion paper

Mental Health and Education Decisions

Mental health problems - and depression in particular - have been rising internationally. The link between poor mental health and poor educational outcomes is particularly interesting in the case of the UK which has a lo...Read more...

CEP discussion paper

The Determinants of Intrafirm Trade: Evidence from French Firms

How well does the theory of the firm explain the choice between intrafirm and arms' length trade? This paper uses firm-level import data from France to look into this question. We find support for three key predictions o...Read more...

CEE/Education and skills discussion paper

Valuing School Quality Using Boundary Discontinuities

Existing research shows that house prices respond to local school quality as measured by average test scores. However, higher test scores could signal better quality teaching and academic value-added, or higher ability, ...Read more...

CEP discussion paper

Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, Social Security and Program Data

There is limited empirical evidence on whether unrestricted cash social assistance to poor pregnant women improves children’s birth outcomes. Using program administrative micro-data matched to longitudinal vital statisti...Read more...

CEP discussion paper

Does High Involvement Management Improve Worker Wellbeing?

Employees exposed to high involvement management (HIM) practices have higher subjective wellbeing, fewer accidents but more short absence spells than “like” employees not exposed to HIM. These results are robust to exten...Read more...

CEP discussion paper

The Role of Educational Quality and Quantity in the Process of Economic Development

We develop a theory of human capital investment to study the channels through which students react to school quality when deciding on investments in secondary education and above, and to study how educational quality aff...Read more...

Journal article

International Review of Psychiatry:

Implementing NICE guidelines for the psychological treatment of depression and anxiety disorders: The IAPT experience

The Improving Access to Psychological Therapies (IAPT) programme is a large-scale initiative that aims to greatly increase the availability of NICE recommended psychological treatment for depression and anxiety disorders...Read more...

CEP discussion paper

A Model for the Delivery of Evidence-Based PSHE (Personal Wellbeing) in Secondary Schools

Personal Social Health and Economic (PSHE) education is a non-statutory school subject designed to facilitate the delivery of a number of key competencies relevant to health, safety and wellbeing. As well as contributing...Read more...

CentrePiece article

In brief: Chernobyl: the long-term health and economic consequences

Hartmut Lehmann and Jonathan Wadsworth assess the long-lasting effects of radiation exposure from the Chernobyl disaster on the people of Ukraine....Read more...

CEP occasional paper

Houses and Schools: Valuation of School Quality through then Housing Market - EALE 2010 Presidential Address

This paper offers a critical appraisal of the now sizable empirical literature that values school quality and performance through housing valuations. This literature consistently finds housing valuations to be significan...Read more...

CEP discussion paper

The Impact of Chernobyl on Health and Labour Market Performance

Using longitudinal data from Ukraine we examine the extent of any long-lasting effects of radiation exposure from the Chernobyl disaster on the health and labour market performance of the adult workforce. The variation i...Read more...

CEP discussion paper

Crime and Mental Wellbeing

Most estimates of the cost of crime focus on victims. Yet it is plausible that an even larger cost of crime occurs via its indirect impact on the mental wellbeing of non-victims. To test how crime affects individuals’ me...Read more...

CentrePiece article

In brief: Hospital performance: the impact of good management

CEP research highlights the potential role of improving the quality of hospital management for raising productivity in the UK healthcare sector...Read more...

CEP discussion paper

Did Vietnam Veterans Get Sicker in the 1990s? The Complicated Effects of Military Service on Self-Reported Health

The veterans disability compensation (VDC) program, which provides a monthly stipend to disabled veterans, is the third largest American disability insurance program. Since the late 1990s, VDC growth has been driven prim...Read more...

CEP discussion paper

A Map of Mental Health

This paper provides a comprehensive picture of mental health services in England, including staffing and expenditure, and the number of people in need and the number treated. Historically, this information has been split...Read more...

CentrePiece article

Making the UK's aid budget work better

All the UK's major parties agree on ring-fencing foreign aid spending at current levels, even while the country's dire financial situation requires sharp cuts to other budgets. Peter Boone draws on the evidence on aid ef...Read more...

CEP discussion paper

Quality Matters - the Expulsion of Professors and Ph.D. Student Outcomes in Nazi Germany

I investigate the effect of faculty quality on Ph.D. student outcomes. To address the endogeneity of faculty quality I use exogenous variation provided by the expulsion of mathematics professors in Nazi Germany. I find t...Read more...

Journal article

Journal of Political Economy:

Can pay regulation kill? Panel data evidence on the effect of labor markets on hospital performance

In many sectors, pay is regulated to be equal across heterogeneous geographical labor markets. When the competitive outside wage is higher than the regulated wage, there are likely to be falls in quality. We exploit pane...Read more...

CEP election analysis

CEP Election Analysis 2010 - The complete Series, discussing research on some of the key policy battlegrounds of the 2010 General Election

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CEP election analysis

Health: Higher Spending has Improved Quality, But Productivity Must Increase

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SERC/Urban and Spatial Programme Discussion Paper

Does Hospital Competition Save Lives? Evidence from the English NHS Patient Choice Reforms

This paper examines whether or not hospital competition in a market with fixed reimbursement prices can prompt improvements in clinical quality. In January 2006, the British Government introduced a major extension of the...Read more...

CEP discussion paper

Can Family-Support Policies Help Explain Differences in Working Hours Across Countries?

It has been suggested in the literature that taxes and subsidies play an important role in explaining the differences in working hours across countries. In this paper I test whether public programmes for family support p...Read more...

CEP discussion paper

Anatomy of a Health Scare: Education, Income and the MMR Controversy in the UK

One theory for why there is an education gradient in health outcomes is that more educated individuals more quickly absorb new health-related information. The measles, mumps, and rubella (MMR) controversy provides a case...Read more...

CEP discussion paper

Long-Term Health Effects on the Next Generation of Ramadan Fasting During Pregnancy

Each year, many pregnant women fast from dawn to sunset during the Islamic holy month of Ramadan. Medical theory suggests that this may have negative long-term health effects on their offspring. Building upon the work of...Read more...

CEP discussion paper

'The Value of Rude Health': Employees' Well Being, Absence and Workplace Performance

This paper brings new evidence on the relationship between employees' well being, sickness absence and four dimensions of workplace performance i.e. productivity, efficiency, quality of service and profitability. It uses...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Valuing School Quality Using Boundary Discontinuities

A large body of international research shows that house prices respond to local school quality as measured by average test scores. But better test scores could signal better expected academic outputs or simply reflect hi...Read more...

CEE/Education and skills discussion paper

University Quality and Graduate Wages in the UK

We examine the links between various measures of university quality and graduate earnings in the United Kingdom. We explore the implications of using different measures of quality and combining them into an aggregate mea...Read more...

CEE/Education and skills discussion paper

School Quality, Child Wellbeing and Parents Satisfaction

Researchers in economics of education usually assume that parents choose schools for their high academic performance, with some support from revealed preference evidence based on local house prices. However, anecdotal ev...Read more...

CEP discussion paper

International Trade, Minimum Quality Standards and the Prisoners' Dilemma

Unilateral minimum quality standards are endogenously determined as the outcome of a non-cooperative standard-setting game between the governments of two countries. Cross-country externalities from the implementation of ...Read more...

CEP discussion paper

Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance

Labor market regulation can have harmful unintended consequences. In many markets, especially for public sector workers, pay is regulated to be the same for individuals across heterogeneous geographical labor markets. We...Read more...

CEP discussion paper

Maternal Smoking During Pregnancy and Early Child Outcomes

We estimate the harm from smoking during pregnancy upon child birth outcomes, using a rich dataset on a cohort of mothers and their births. We exploit a fixed effects approach to disentangle the correlation between smoki...Read more...

CEE/Education and skills discussion paper

Sheepskin or Prozac: The Causal Effect of Education on Mental Health

Mental illness is associated with large costs to individuals and society. Education improves various health outcomes but little work has been done on mental illness. To obtain unbiased estimates of the effect of educatio...Read more...

CEP report

The Depression Report: A New Deal for Depression and Anxiety Disorders

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CEP discussion paper

City Size Distributions As A Consequence of the Growth Process

The size distribution of cities in many countries follows some broadly regular patterns. Any good theory of city size distributions should (i) be able to account for this regularity, but also (ii) rely on a plausible eco...Read more...

CEP discussion paper

Trade Unions and Industrial Injury in Great Britain

Anecdotal evidence suggests that trade unions succeed in ameliorating workplace health and safety, but no attempt has been made to link specific workplace injury rates with a respective union presence. Relying on WERS98,...Read more...

CEP discussion paper

The Multi-Dimensional Nature of Labour Demmand and Skill Biased Technical Change

Investigating the robustness of the skill-biased technological change hypothesis, this analysis incorporates two novel features. First, effective labor is modeled as the product of a quantity measure û number of employee...Read more...